Medium-sized construction firms drove growth in Q1 2025, smaller enterprises left behind

Medium-sized construction firms drove sector growth in Q1 2025, recording an 85% year-on-year increase in turnover while smaller enterprises experienced a dismal quarter with construction turnover down 48%.
In May 2025, civil tender values reached R7.3 billion – the best figure in six months but the broader tender pipeline remains weak particularly in roads and water infrastructure.
While provinces like Gauteng and the Western Cape recorded strong growth in public tender values, national figures remain subdued with total public tender values down 48% over the past year.
The public sector’s building pipeline also continued to show signs of weakness with a total estimated tender value for May 2025 reaching R916 million – while an 8.7% year-on-year increase, its also the lowest figure in three months driven largely by a low base effect.
The overall construction pipeline—combining public tenders and private approval, fell 10% year-on-year. The private sector’s tentative recovery is being led by the Western Cape which saw a 13% rise in approvals in April 2025 and continues to dominate national totals, while provinces like Gauteng and Limpopo posted sharp declines.
