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
Phase 3 construction of the Maclear Wastewater Treatment Works (WWTW) upgrade project, in the Eastern Cape’s Joe Gqabi district municipality, will start in June this year, says South African black-owned engineering firm Gibb, This phase will include the construction...
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon...
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.
This Week's Magazine
Forest products group Sappi has confirmed the selection of its 25 MW biomass-to-power project, to be erected at its Ngodwana mill, in Mpumalanga, as a preferred bidder under the South African government’s Renewable Energy Independent Power Producer Procurement...
Information and communications technology (ICT) distributor DCC is making Windows- and Android-operating systems tablets available through retailers and education equipment suppliers to provide school children with affordable, high-performance education tools. The...
Another cement manufacturer is set to enter the Ugandan market, raising hopes that prices will come down and spur growth in the construction industry. National Cement, a Kenyan manufacturer, has unveiled plans to invest $195-million in a new manufacturing plant in...
With growth rates exceeding that in the developed world – at an average of between 4% and 5% between 2002 and 2014 – African countries provide investors with ample reason to tap into booming consumer demand says Manufacturing Circle executive director Coenraad...
The South African Chamber of Commerce and Industry’s (Sacci’s) Business Confidence Index (BCI) decreased by 3.7 index points month-on-month to 89.1 in March.