South Africa construction sector poised for growth through infrastructure investment

South Africa’s construction sector, which contributes approximately 2.3% to 2.4% of the national GDP and employs between 1.3 million and 1.35 million workers, is poised for growth. Analysts from Global Data expect the sector to expand by roughly 4.3% annually between 2027 and 2030, driven by renewable energy projects and infrastructure investment.

To qualify for government contracts, businesses must obtain a Construction Industry Development Board (CIDB) grade. Public-sector infrastructure spending is expected to increase, with Minister of Finance Enoch Godongwana confirming significant funding pipelines in the 2026 Budget Speech. This includes R577.4 billion for state-owned companies, R217.8 billion for provinces, and R205.7 billion for municipalities, with the largest portion directed toward transport and logistics.

Despite the projected investment, Infrastructure South Africa has cautioned that misaligned budgets and poor preparation could jeopardize construction projects.