Jul 09, 2013
Civil engineering sector challenged but recovering – SafcecBack
Engineering|Africa|Flow|Renewable Energy|Renewable-Energy|Africa|South Africa|Energy|Flow|Renewable-energy Sector|Infrastructure
© Reuse this
Safcec’s State of Industry report revealed that, while prospects for the next two years seemed uncertain, order books have shown stronger-than-expected improvements.
Government spending on infrastructure was expected to remain a priority and would not be affected by cuts in spending that are necessary to align budgets with lower levels of revenue, Safcec said in a statement on Tuesday.
However, to accelerate growth, government would either have to increase the revenue available for infrastructure spending or improve expenditure.
The group cited government’s commitment to ten potential special economic zones (SEZs) countrywide that could deliver socioeconomic benefits and create jobs. The SEZ’s were expected to undergo feasibility studies to determine their viability.
Further, the renewable-energy sector, with the private sector showing increased commitment, offered potential growth opportunities.
However, a number of firms reported low turnover in the first quarter of 2013 on the back of stable, low growth in government’s budget allocations and the possible negative impact of slower domestic and global growth on infrastructure spending in the medium term.
Further, Safcec pointed out that corruption during tender processes, delays and postponements in the awarding of tenders and a shortage of qualified and skilled engineers continued to impede the industry’s growth potential.
The report also warned of capital flow volatility and that emerging economies would need to manage these amid greater exchange-rate pressures.
Edited by: Chanel de Bruyn© Reuse this Comment Guidelines (150 word limit)
Other Construction News
Recent Research Reports
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
This Week's Magazine
Projected capital expenditure (capex) in the South African automotive assembly industry should reach a record R7.48-billion this year, says the National Association of Automobile Manufacturers of South Africa (Naamsa) in its 2014 fourth quarter business review. Capex...
After several years of navigating project-threatening red tape and currency fluctuations, the 4.4 MW Bronkhorstspruit biogas power plant, which will supply clean energy to a leading automotive manufacturer in Gauteng, is expected to enter production before June....
South African paper and pulp producer Sappi reported earlier this month that it would build a pilot plant for the production of low-cost Cellulose NanoFibrils, or CNF (nanocellulose) at the Brightlands Chemelot Campus in Sittard-Geleen in the Netherlands.
The long-term outlook for Nigeria is a country that has the potential to be very strong. So affirmed International Monetary Fund (IMF) Nigeria Mission Chief and Senior Resident Representative Dr Gene Leon on recently. "But we are starting from a point of huge...
Poor infrastructure planning and inadequate maintenance are becoming increasingly problematic for new developments and the associated infrastructure required to support such developments. In many urban and rural municipalities, the state of infrastructure has been...