South Africa’s construction sector saw a 23% rise in project awards and a 16% increase in value in March 2025, led by major civil projects in the Western Cape and KwaZulu-Natal, according to Industry Insight’s Construction Monitor.

However, tender activity dropped sharply by 42% year-on-year, with project cancellations surging particularly in the education sector.

The country’s economy is showing mixed signals – retail sales are up, and inflation is stable, but manufacturing, mining, and overall growth remain weak. Political uncertainty, a R16 billion trade deficit (mainly with China), and growing tensions within the GNU have added to investor unease.

Domestically, provinces have launched major infrastructure projects, particularly in the Western Cape and Gauteng, although delivery failures and governance issues persist. Public pressure is mounting on government to fix state inefficiencies, tackle corruption, and support private investment but with continued mismanagement and delayed reforms, confidence in South Africa’s economic direction remains fragile.

In January 2025, South Africa’s construction sector showed early signs of recovery with a strong rebound in building approvals, up nearly 30% year-on-year and driven by growth in residential and industrial projects, particularly in the Western Cape and KwaZulu-Natal.

Wholesale and retail sales of construction materials also improved however, construction cost inflation crept back, driven by rising material and equipment prices. Despite this progress, the sector remains under pressure; public sector building tenders have declined sharply, project postponements and cancellations, especially in KwaZulu-Natal, are on the rise, and business confidence is being undermined by political instability and global economic uncertainty.

Although civil project awards picked up in early 2025, due to large SANRAL and uMgeni-uThukela Water contracts, the broader construction pipeline remains fragile, with investor hesitancy and state payment delays limiting long-term momentum.

During January and February 2025, South Africa imported 254 549 tonnes of cement, marking a 22% year-on-year increase. Vietnam remained the dominant supplier accounting for 89% of imports despite a 44% drop in February 2025 volumes. Imports from Mozambique and Namibia surged by 152% and 56% respectively, together contributing 10.7% of total imports, up from 6.5% in the same period of 2024. The average FOB price per ton from Vietnam decreased by 9% to R744, while imports from Mozambique and Namibia averaged R1,001.70 and R1,570.10 per ton respectively