South Africa’s construction industry could create up to 2 million jobs over the next decade through the government’s R230-billion infrastructure programme, but only if the country tackles the construction mafia disrupting projects worth R60 billion, speeds up approval processes, and addresses widespread corruption and skills shortages that currently threaten to limit job creation to just 200 000 to 400 000 positions.
Construction, like much of South Africa’s modern economy, grew out of the mining industry – and its next phase of growth is tied to hopes of a more dynamic urban future.
China’s rise to global power followed a similar sequence: infrastructure and housing first, then technology. From a very different starting point and with a different ideology, the South African government appears to be thinking along comparable lines.
After years of neglect, repairing and rebuilding core infrastructure has been recognised as a necessary starting point and is now under way. The real question is whether there will be equal resolve to invest in the human infrastructure needed to sustain that progress.
In 2025, through the Department of Public Works, the government released a construction book of 250 projects with a fully funded cost of R230 billion. Planned projects in roads (R233 billion), water (R121 billion) and housing (R46 billion) are also in the pipeline, alongside an estimated R7 trillion of related investment over the next 25 years.
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The industry reached its peak performance around 2010. Kusile, Medupi, Gautrain and multiple stadiums were built by a budding construction sector.
Once these were done, a decline set in. The capacity to deliver locally needs rebuilding. In recent times, the “big 5” construction businesses have been in decline. Group 5, Murray & Roberts, and Basil Read have been through business rescue. Aveng survives, and WBHO is the largest remaining.
In the 2023/24 fiscal year, construction contributed 2.7% to GDP and employed 1.3 million people.
At the expected GDP growth rate,150 000 to 200 000 jobs will be created over 10 years. If government plans are executed efficiently, that number could double to 300 000 to 400 000 – but only if we act.
A range of frictional costs has risen sharply, increasing project expenses and discouraging investment. Delays caused by inefficient rules and a weak bureaucracy at all levels further push costs upward.
Despite its problems, the South African construction industry is not simply fading away. Institutions have emerged to manage the quality of work, report on the industry, and lobby for its interests. A growing degree of openness and partnership with the government is a reality.
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For jobs to be created and the industry to grow, government plays a crucial role. A well-managed, funded, and corruption-free infrastructure programme is the first step.
Construction is a leading producer of economic multipliers in SA and is excellent at net fixed capital creation.
If we tackle the threat of a dystopian urban future head-on, this industry could drive skills development, job creation, and poverty reduction – potentially generating up to 2 million jobs. If we fail, only 200 000 to 400 000 jobs may be created.
Conclusion:
- Destroy the construction mafia.
- Speed up approval processes – Shanghai can locate and approve a new factory in three weeks; in South Africa, this could take five years or more.
- Support the registration of our graduate engineers.
- Fix municipalities.
- Implement a postgraduate course for professionals in municipalities.
- Train artisans and ensure the demand for their skills.
- Have the courage to think differently. We could create 2 million new, value-adding jobs in 10 years.
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