R/€ = 13.28
R/$ = 12.14
Au 1188.45 $/oz
Pt 1116.50 $/oz
May 29, 2007
Gauteng building sector set for 'explosive' growthBack
© Reuse this Gauteng’s construction and peripheral industries are positioned to experience an "explosion" that would see some R1,2-trillion flowing through the sectors and their extended supply chains, Standard Bank chief economist Goolam Ballim predicated.
This would be a sharp contrast to the R700-million that was spent during the past three years.
The Gauteng Business Barometer (GBB) for April revealed an especially robust construction industry as activity levels remained nearly 20% higher than in the same month last year, he said.
The GBB measures Gauteng’s economic activity on a monthly basis.
“It also places into perspective the contribution of the 2010 Soccer World Cup of between R50-billion and R60-billion to South Africa’s gross domestic product.”
The R1,2-trillion represents a composite figure which includes activity in the extended supply chain of the construction industry, in the residential and commercial fields.
“It also includes production of machinery and equipment. This development will benefit many smaller players as the established names will not be able to attend to all projects,” said Ballim.
Other sectors, however, did not perform as well as the construction industry.
April was probably one of the worst months for Gauteng businesses, Ballim said, explaining that the
GBB for April had slipped to 146,4 index points from 150,4, in March, indicating a 2,7% drop in business activity levels, and a 5,9% decrease when compared to the same month last year.
“The main reason for this is the negative impact of higher interest rates and inflation. Implementation of the eNaTIS system also has an impact. The effect is more severe than we thought would be the case, four or five months ago,” explained Tsec Economist Mike Schüssler.
The economic sectors that performed worse month on month and year on year were the mining and trade sectors. The trade sector, which includes retailers, wholesalers and tourism operators were hit by the effects of the eNaTIS system, resulting in 6,2% decrease in motor vehicle sales,” he said.
Edited by: Liezel Hill© Reuse this Comment Guidelines (150 word limit)
Other Infrastructure News
Updated 5 hours ago LSM Distributors has contracted engineering consultancy WSP | Parsons Brinckerhoff Africa to undertake the R100-million restoration of the 54-year-old Kyalami racetrack, situated in Midrand. The restoration will assist in re-establishing it as a venue for...
Updated 5 hours ago South African Defence Minister Nosiviwe Mapisa-Nqakula has expressed the hope that the defence budget will be significantly increased over the next five years. She did so while addressing the media in her recent budget vote media briefing. The 2015/2016 defence...
Updated 5 hours ago Engineering, management and specialist technical services firm Aurecon has registered a significant increase in asset management projects in KwaZulu-Natal in the past year, as private and public organisations realise they gain more value from assets if they can...
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
Updated 6 hours ago While strongly welcoming the promulgation of the new Part 101 of South Africa’s civil aviation regulations, governing the commercial operation of civil remotely piloted aircraft (RPAs) in South Africa, the Commercial Unmanned Aircraft Association of Southern Africa...
Updated 6 hours ago LSM Distributors has contracted engineering consultancy WSP | Parsons Brinckerhoff Africa to undertake the R100-million restoration of the 54-year-old Kyalami racetrack, situated in Midrand. The restoration will assist in re-establishing it as a venue for...
Updated 6 hours ago South African Defence Minister Nosiviwe Mapisa-Nqakula has expressed the hope that the defence budget will be significantly increased over the next five years. She did so while addressing the media in her recent budget vote media briefing. The 2015/2016 defence...
Updated 6 hours ago The African Development Bank (AfDB) has been an implementing agency for the Global Environment Facility (GEF) since 2008. The relatively young portfolio has 28 projects over 30 countries on the continent according to the 2014 AfDB and GEF annual report released...
Updated 6 hours ago Investment in South African youth through apprenticeships and learnerships will not only create direct benefits for businesses but will also contribute significantly to job creation and socioeconomic transformation in the country.