The Western Cape Department of Transport and Public Works has made funding available for the development of infrastructure in the Western Cape.

The Master Builders Association of the Western Cape (MBAWC) notes that about R2.77-billion will be spent on the construction and maintenance of roads, R1.2-billion will be allocated to education and a further R780-million will be earmarked for healthcare. Adding to this, a number of regeneration projects are also planned.

“All of these initiatives will help to create a confident climate for the private sector to invest and will hopefully also attract direct foreign investment. Further, the release of these funds will go a long way towards providing work for our members, comprising some 400 companies in the Western Cape,” says MBAWC executive director Allen Bodill.

He adds that, although there has been an “uptick” in the number of projects currently under way and starting – as evidenced by the number of cranes along the Atlantic seaboard and around the city – the MBAWC believes that the construction industry in the Western Cape has a lot more capacity than is currently being used.

With many of the MBAWC members reporting that the local industry is highly competitive as a result of several members looking for — and undertaking – work outside the borders of the region, Bodill hopes that the local government will continue to contribute to the industry through the release of more big-budget projects more regularly.

“What we would also like to see happen is more public–private partnership projects coming to the fore and we believe that there is an appetite among the private sector to participate in these ventures,” Bodill points out.

However, he mentions that there are potential risks to the roll-out of these projects owing to the current skills shortage, which is an issue that needs to be addressed. He adds that there is a need to continue training personnel in order to replace those highly skilled and experienced people who are leaving the local industry at quite a rapid rate through retirement.

Moreover, the unpredictable power outages, owing to load-shedding, are a great concern and have severe implications for the region’s economic prospects.

“Also, the fluctuating fuel price and the possibility of interest-rate hikes in the near future represent further difficulties for local construction contractors, many of whom are operating below capacity,” Bodill adds.