The estimated value of public sector building tenders released in August 2025 increased for the second consecutive month, rising by 85.4% year-on-year, following a 36.2% increase in July 2025 according to Industry Insight.

The growth was driven primarily by higher tender values in the Eastern Cape and KwaZulu-Natal with tender volumes also improving, up 5% year-on-year, with most of the activity concentrated in the Eastern Cape. Industry Insight says this recent recovery is supported by the rollout of the 2025/2026 budget allocation, although off a low base in 2024 when the May elections led to widespread postponements and delays.

Despite the rebound, cumulative tender values remain 3% lower than in 2024, equating to a shortfall of R357 million with an estimated total of R10.9 billion for the first 8 months of 2025. This trend suggests that public sector tender activity may have reached a turning point which could support stronger award values over the next year.

However, award activity in August 2025 proved disappointing, says Industry Insight, with values barely reaching R400 million – a 67% decline year-on-year. For the 8-month period, awards slumped by more than 50% year-on-year with only the Western Cape and Mpumalanga recording increases. The outlook has become moderately more positive, provided the recent increase in tender activity is sustained and translates into awards, with the Western Cape and Gauteng expected to remain the main focus areas.

In the civil construction sector, the recovery in tender values seen in July 2025, the first real increase in 14 months, moderated in August 2025. The value of civil tenders released rose 5% year-on-year to R6.9 billion although this was lower than the R8.2 billion reported in July 2025. Gauteng led the month’s activity, recording the highest value of tenders, followed by KwaZulu-Natal and the Eastern Cape – both of which posted year-on-year increases. By contrast, the Free State, the Western Cape, and Northern Cape saw declines compared to August 2024.

Cumulatively, civil tender values remain subdued, down 20% year-on-year for the first eight months of 2025 at current prices. In sharp contrast, the value of civil project awards surged 85% year-on-year over the same period. Yet award activity weakened significantly in August 2025, falling 54% percent year-on-year to just over R3 billion. Gauteng once again led the market with the highest value of awards issued.