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Emerging contractors drive significant growth in SA’s Grade 9 construction sector

Emerging contractors drive significant growth in SA’s Grade 9 construction sector

In April 2025, SA’s construction sector recorded a 2% rise in project values to R11.3 billion despite a 4% drop in the number of projects awarded according to Industry Insight.

Mpumalanga dominated with a R3.7 billion SANRAL road project while Gauteng and KwaZulu-Natal also saw significant awards. However, a sharp 37% decline in tender activity signals future risk with project cancellations and postponements – particularly in KwaZulu-Natal, remaining high.

While year-to-date project values soared 53% to R60.5 billion, a shrinking pipeline could challenge sustained growth.

As of May 2025, the construction sector experienced significant growth in CIDB Grade 9 contractor registrations with civil engineering contractors (Grade 9CE) having increased by 11% since October 2024 to 296, largely driven by emerging contractors whose numbers have grown substantially by 80% over the past two years.

Similarly, general building contractors (Grade 9GB) rose by 22% in the same period, totalling 175 with emerging contractors again forming the majority.

Additionally, 117 contractors hold dual registrations, reflecting increased integrated capacity across the building and civil engineering sectors, primarily among emerging firms.

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