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SA construction industry needs to up it’s game to keep up with sub-Saharan Africa

SA construction industrySA construction industry
SA construction industrySA construction industry

 

SA construction industry needs to up it’s game to keep up with sub-Saharan Africa

China is dominating the sub-Saharan Africa building boom and it’s truly is a magnificent boom. In the midst of typical instability within African economies, sub-Saharan Africa remains on the leaderboard of highest construction growth globally. According to Business Live, in January 2017 BMI Research released a report stating that Chinese engineering groups are dominating the construction growth in this region. These engineering groups are supported by concessionary loans from the Export-Import Bank of China.  

 

China’s projects are set to reach far into sub-Saharan Africa

At the beginning of this year, China began its Belt and Road Initiative(BRI). It formed two African Hubs which are in Kenya and Egypt. But these networks are also linking with Ethiopia and Tanzania, created connected routes between sub-Saharan Africa and the rest of the continent. Djibouti, situated in the hook of Africa, has been pinpointed by China as transit and logistics hub. China’s first overseas military base is also in Djibouti and the Chinese are set to turn this tiny country into a second Dubai.

Of course, major projects like this one are bound to attract the attention of those in the construction and built environment game. Tanzania announced, in December 2016, that three different cement companies were investing approximately $9.2 billion into their projects.

 

Our country’s construction sector is strongly tied to our government

A little closer to home, the South African construction sector is seemingly in constant flux. Since 2009 (the last time we were in a recession), the construction sector has struggled. Because of this many of the construction companies that have emerged over the past eight years are subpar in their standards and delivery.

At the beginning of 2017, our government announced yet another recession and with us reaching an all-time low with our new junk status, the whole country felt a flood of anxiety. But it was recently reported that South Africa enjoyed 2.5 percent growth in the second quarter of the year, and so the recession is no longer. The construction industry, however, exhibited negative growth. And yet, our government has a detailed infrastructure plan which requires input and assistance from the construction sector, which they’re insistent on going ahead with. And the truth is that the major players in the construction are well-placed with enough expertise to wholeheartedly support the infrastructure plan.

 

But South Africa isn’t out of the water just yet

The construction sector can probably expect some growth but it’ll be slow. The country is not attractive to investors right now as the rand is struggling and inconsistent. The government will spend the next four years investing in transport, logistics, low-cost housing and energy and these areas of concern will be the main contributor to growth.

Submitting applications for a tender in South Africa is not all that easy. To ensure your construction company is able to win a tender for any of the coming projects, you need to register your business with a variety of governing bodies. Obtaining the relevant licenses from these institutions is the only way to be successful in winning tenders and governmental contracts. The organisations you must apply to are the Companies and Intellectual Property Commission (CIPC), the Construction Industry Development Board (CIDB) and the National Home Builders Registration Council (NHBRC). It’ll also do your business a world of good to partner with well-established heavy engineering companies for any outsourced materials and industrial activities. The likes of Babcock International is an excellent example of a company entrenched in the heavy industries.

 

SA construction industry