Construction taking strain, infrastructure could hoist it

CAPE TOWN – The Afrimat Construction Index (ACI) sunk deeper into the doldrums, to the lowest level since 2013, declining 2.9percent in the fourth quarter of 2019.

However, activity should be boosted by double-digit annual increases in infrastructure spending, economist Dr Roelof Botha – who compiled the index that indicates the level of activity in the building and construction sectors – said in an interview yesterday.

Prospects for an improvement in the long-standing slump in construction activity in South Africa presented a mixed bag.

The local construction sector was relatively shielded from the global economic impact of the Covid-19 virus, but could be affected indirectly via investment uncertainty, he said.

The government was “fast-tracking” infrastructure spending through the implementation team of the Infrastructure Fund, which had finalised a list of so-called “shovel-ready projects” in student accommodation, social housing, water, rail freight branch lines, embedded electricity generation and municipal bulk infrastructure, he said.