Where is South Africa’s Construction Sector Heading?

As the world is getting ready for the rebuild after the well-known hardship and destruction of COVID-19, everyone is on the edge of their seats to see what will happen in the various economic sectors. It is, of course, no different for South Africa and the construction industry. According to iclg.com South Africa is expected to see an average yearly growth of 3.4% between 2022-2025. This is said to be due to the governments initiative to increased focus on investment in the energy sector and infrastructure.

Although the industry’s outlook seems bright, one thing everyone has learnt is to be prepared for some of the harshest times. Keep your company going with some of the follow strategies:


Build and have an active social media presence.
Everything is online now more than ever, make sure you are visible on the web.
Ensure that every job is done in best efforts, so that clients will have positive things to say about your company.
Word-of-mouth and social media are sure to give you a competitive advantage when the industry starts growing again.


Invoice your client with sufficient time to pay.
Ensure that clients pay on-time as per agreement.
Construction companies can’t afford to be too lenient, so make sure your company receives the payments due to you.
Remember that your suppliers are also under pressure and will surely have these same viewpoints.


Cut on expenses as much as you can without creating a less-friendly work environment.
Be creative with replacing expenses with more affordable purchases without cutting on quality.

Pre-owned and reconditioned machinery

Often new machinery is needed to complete a job.
Consider well-looked after pre-owned or reconditioned machinery.
It might be the only way to purchase machinery in these tough times.


Be open to communicate the company’s strategies with your workers.
If any benefits, bonuses or pay checks need to be cut, communicate the details to your workers as soon as possible.
Informed workers tend to be more supportive, understanding and accepting.


Be ready to negotiate with your suppliers.
Ask for longer payment terms.
Consider new suppliers if the price and quality will suite you better.
Remember that suppliers are also in a rough spot and will probably be open to weighing new options.

Your strengths

Stick to the jobs you know best.
Hard times might make it tempting to try anything but rather turn a job down than risk your reputation.


The tough times leave room for creative thinking.
Consider where the opportunities lie and how your company can fill them.

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