PwC, a professional network service provider has released a report that indicates the good growth South Africa’s construction industry is facing at the moment, making it even more balanced in order to support infrastructure development in the country. These results were based on financial results of the country’s top 10 construction companies on the Johannesburg stock exchange (JSE).
According to PwC’s partner Andries Rossouw, the country has been facing financial constraints in the last three years, but this has not been a hindrance as individual companies are putting more commitments to public infrastructure.
The report releases indicates that institutions in the public construction sector recorded a capital expenditure increase of 11.7 percent since 2011. The same firms reported a total expenditure of US$18bn. According to the new report, new construction work shot to 3.5 percent, while plant, machinery and equipment purchases rose by 55 percent. There has also been an increase in salaries for individuals working in the construction sector, unlike other sectors.
The report comes a few months after South Africa government promised to roll out infrastructure projects faster, among them its own envisioned US$847bn infrastructure programme that had reported delays earlier on.
The report also reveals common risks such as health, safety, environment sustainability, law compliance, growth and expansion, with movement of foreign exchange affecting the construction sector by impacting on project timelines.
According to Rossouw, the construction industry in South Africa is currently facing skill development and equity in employment as the major challenges.
