Market Report, "South Africa Infrastructure Report Q1 2015", published

From: Fast Market Research, Inc.
Published: Tue Jan 06 2015

South Africa remains one of Sub-Saharan Africa's most attractive construction markets, offering both scale and a stable business environment. While our forecasts for average real growth in the 2015-2023 period of 4% is low by regional standards, those exposed will benefit from a substantially lower risk premium than in other high-growth SSA markets. Although reforms will be slow, we expect movement in the infrastructure sector to pick-up, while the low-end housing market will benefit from government support.

After faltering in recent years, we believe that the South African construction industry will gather pace over 2015, after a solid performance in 2014. The country has a solid infrastructure project pipeline, both in the transport and energy sector, which will believe will support growth over the long-term and our forecasts reflect this. A push to move all people into formal accommodation by the government and the legislation for the promotion of Special Economic Zones (SEZs) should act as additional drivers to growth.

Full Report Details at

* Many of the grand infrastructure programmes proposed by President Jacob Zuma draw on huge capex schemes by the country's state-owned infrastructure operators, including Eskom, Transnet, Prasa and Sanral. They all have multibillion-dollar plans in the pipeline; financing has proved to be a major obstacle and continues be so. Eskom and Transnet have made progress in issuing bonds to raise capital, but Sanral in particular continues to struggle with huge debts, which threatens investment into the road sector.
* The rail and port sectors are a key source of growth in our forecasts as Transnet has front loaded its spending plans with huge capacity expansion projects, for examples a new dug-out port in Durban. The government's Infrastructure Development Bill, which would see selected projects with significant importance fast-tracked in an attempt to get the government's large infrastructure backlog moving.
* However, with...

The South Africa Infrastructure Report features Business Monitor International (BMI)'s market assessment and forecasts covering public procurement and spending on all major infrastructure and construction projects, including transportation and logistics by land, sea and air; power plants and utilities, and commercial construction and property development. The report analyses the impact of regulatory changes and the macroeconomic outlook and features competitive intelligence on contractors and suppliers.

BMI's South Africa Infrastructure Report provides industry professionals and strategists, sector analysts, investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the South African infrastructure and construction industry.

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