The construction value added in South Africa has experienced significant fluctuations over the past decade. From a peak in 2015 at 4.12 units, there was a marked decline through 2019, hitting a severe low in 2020 at 3.16 units, attributed to economic disruptions from the pandemic. The industry began recovering in 2021, with moderate growth. By 2023, the value stood at 3.69 units, a 2.62% increase from the previous year. Over the last five years, the CAGR was -1.23%. Looking forward, forecasts indicate a slight annual decline, with a five-year CAGR at -0.33%, projecting a gradual reduction in growth rate, reaching 3.6 units in 2028.
Future trends to watch for include:
- Investments in infrastructure projects, which may drive value-added growth.
- Economic policies impacting construction sector performance.
- Sustainability initiatives influencing construction practices and costs.