In 2023, the South African construction sector contributed with an added value of approximately 109.5 billion rand (roughly 5.79 billion U.S. dollars) to the country's gross domestic product (GDP). This represents a increase of in comparison to the previous year, when the sector's added value to the country's GDP added up to approximately 108.9 billion rand.

In the third quarter of 2023, approximately 347,000 South Africans residing in the Gauteng province were working in the construction industry, marking a year-on-year change of 14,000 people employed. The regions of the Western Cape and KwaZulu-Natal also revealed high numbers of people employed within the industry, at 253,000 and 241,000, respectively.

GDP from Construction in South Africa decreased to 99808.81 ZAR Million in the first quarter of 2025 from 103719.97 ZAR Million in the fourth quarter of 2024. This dataset provides the latest reported value for - South Africa Gdp From Construction - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

The South Africa Data Center Construction Market report segments the industry into Infrastructure (Electrical Infrastructure, Mechanical Infrastructure, General Construction), Tier Type (Tier 1 and 2, Tier 3, Tier 4), and End User (Banking, Financial Services, and Insurance, IT and Telecommunications, Government and Defense, Healthcare, Other End Users). Get five years of historical data alongside five-year market forecasts.

The South African modular construction market is experiencing robust growth, driven by factors such as increasing urbanization, infrastructure development needs, and a demand for faster and more cost-effective building solutions. The market's expansion is fueled by government initiatives promoting affordable housing and sustainable construction practices. While precise market sizing for South Africa is unavailable in the provided data, considering the global CAGR of over 5% and the strong regional growth drivers, a conservative estimate places the 2025 South African modular construction market size at approximately ZAR 1.5 billion (approximately USD 80 million, based on a rough conversion and assuming a proportionally smaller but still growing market compared to global figures). This figure is projected to increase significantly over the forecast period (2025-2033), with a likely CAGR mirroring or slightly exceeding the global average, driven by increased private sector investment in commercial and industrial projects, alongside ongoing public sector initiatives. The market is segmented by material type (concrete, steel, timber, etc.) and application (residential, commercial, industrial), with steel and concrete likely dominating due to their durability and suitability for diverse applications. Key restraints include a potential skills shortage in the specialized construction workforce and regulatory hurdles that may slow down project implementation. However, the overall market outlook remains positive, with increasing adoption of sustainable and prefabricated modular techniques expected to drive considerable future growth. The competitive landscape features both international players with established footprints in Africa and emerging local companies. These firms offer a range of modular building solutions tailored to the specific needs of the South African market. The presence of both large multinational corporations and smaller, specialized businesses suggests a diversified market with opportunities for various players. The market is likely to see increased consolidation and collaboration in the coming years as companies adapt to changing market dynamics and strive for greater efficiency and economies of scale. Further research focusing specifically on South African market data is advised for a more precise market analysis and detailed competitor landscape. Recent developments include: October 2022: Sika acquired a majority stake in Index Construction Systems and Products. Index is a leading manufacturer of roofing and waterproofing systems based near Verona, Italy., July 2022: SHAPE announces the acquisition of KLMSA, a modular construction company with over 30 years of experience in delivering modern, custom modular building solutions. Based in Victoria, KLMSA has a particular focus on the education and community infrastructure sectors.. Notable trends are: Government Initiatives Helping the Construction Industry.

The Construction Industry In Africa market report segments the industry into By Sector (Commercial Construction, Residential Construction, Industrial Construction, Infrastructure (Transportation) Construction, Energy and Utilities Construction), By Construction Type (Additions, Demolition, New Constructions), and By Region (Eastern Africa, Western Africa, Southern Africa, Northern Africa).

In 2019, the value added by the South African construction sector to the country's Gross Domestic Product (GDP) decreased 3.3 percent from the previous year. The decline followed a downward trend started in 2017, when the sector's added value contracted by 0.6 percent.

The South African data center construction market is projected to grow at a CAGR of 10.27% during the forecast period (2025-2033), reaching a market size of $1.31 million by 2033. The growth of the market is attributed to the increasing demand for data storage and processing services, driven by the adoption of cloud computing and big data analytics. Moreover, the presence of several major financial institutions and telecommunication companies in the country has further fueled the demand for data center infrastructure. The major drivers of the market include the rising demand for cloud computing, big data analytics, and artificial intelligence applications, which require significant data storage and processing capabilities. Additionally, the increasing need for data security and compliance has led to the adoption of tier 3 and tier 4 data centers, driving the growth of the market. However, the market also faces challenges such as rising construction costs and the shortage of skilled professionals, which may restrain its growth to some extent. Recent developments include: February 2024: Equinix Inc. decided to invest USD 390 million in Africa over the next five years. The investment will focus on constructing new data centers and bolstering its existing operations, primarily in South Africa and the western regions of the continent.January 2023: Africa Data Centres, a subsidiary of Cassava Technologies, a prominent pan-African technology conglomerate, revealed plans for its second data center in Cape Town. Positioned in the northern region of the city, this new facility is set to accommodate an IT load of 20 MW. With construction already in progress, the center is slated for completion and operational status by 2024.. Key drivers for this market are: 4., Government Support for Data Center Development4.; Advent of Cloud, Big Data, and IoT Technologies Driving Investments. Potential restraints include: 4., Government Support for Data Center Development4.; Advent of Cloud, Big Data, and IoT Technologies Driving Investments. Notable trends are: Tier 3 Data Centers Holding Significant Market Share.

Graph and download economic data for Infra-Annual Labor Statistics: Employment: Economic Activity: Industry (Except Construction): Total for South Africa (LFEAINTTZAA647S) from 2000 to 2024 about South Africa, construction, employment, and industry.

1. IntroductionConstruction waste is a significant environmental and financial concern in South Africa, leading to increased project costs and resource depletion. Despite efforts to manage waste effectively, contractors still face numerous challenges, including high disposal costs, lack of awareness, and ineffective policies. This research aims to develop a structured waste management framework to aid the reduction of construction waste in the South African Construction Industry (SACI).2. Research ProblemThe South African construction industry lacks a comprehensive framework for effective waste management. Contractors often prioritize short-term financial savings over long-term sustainability, and poor communication, inadequate training, and inconsistent policy enforcement hinder waste reduction efforts. Additionally, limited access to recycling facilities and ineffective tracking of waste generation exacerbate the problem.3. Research Aim and ObjectivesThe study seeks to develop a structured waste management framework that integrates economic, social, and environmental factors to reduce construction waste. The specific objectives include:To assess contractors’ perceptions regarding construction waste management.To identify key drivers influencing waste management practices.To explore challenges faced by contractors in reducing construction waste.To examine various construction waste management approaches currently in use.To propose an effective framework for minimizing construction waste.4. Research MethodologyThe study adopts a quantitative research approach, focusing on construction companies in the Eastern Cape province of South Africa. Data collection involves survey questionnaires distributed to contractors registered under the Construction Industry Development Board (cidb) Grades 5–9.Data Analysis Techniques:Descriptive and inferential statistics using SPSS version 29.Reliability testing via Cronbach’s alpha coefficient.ANOVA (Analysis of Variance) to determine significant differences in cost concerns among contractors.Factor analysis to examine the interaction of economic, social, and environmental influences on waste management.5. Key FindingsContractors' Perceptions: Although waste reduction strategies can lead to long-term cost savings, contractors are primarily concerned about high disposal costs and short-term financial pressures.Management Challenges: Ineffective communication, reluctance to adopt innovative methods, and inconsistent policy enforcement negatively impact waste reduction efforts.Training Deficiencies: Insufficient training leads to a lack of knowledge about regulations, safety concerns, and opportunities for material reuse or recycling.Influencing Factors: Waste management practices are shaped by three primary factors:1. Economic Factors: Recycling opportunities, material costs, and regulatory compliance costs.2. Environmental Factors: Waste reduction, recycling, resource efficiency, and water conservation.3. Social Factors: Industry standards, public awareness, and continuous education.Major Challenges: Seven key obstacles hinder waste reduction efforts, including:1. Poor communication about waste reduction.2. Limited access to recycling facilities.3. Inappropriate material reuse on-site.4. Lack of a zero-waste culture.5. Difficulty in locating nearby recycling facilities.6. Insufficient waste management equipment.7. Challenges in tracking waste generation on-site.6. Proposed Framework for Construction Waste ReductionTo enhance waste management in the South African construction sector, the study recommends a structured framework incorporating:Sustainable material selection to minimize resource wastage.Efficient procurement strategies to reduce over-ordering and material waste.Operational planning that integrates waste reduction goals at every project stage.A waste-conscious culture supported by training and awareness programs.Collaboration with suppliers to promote sustainable sourcing and recycling initiatives.Adherence to regulations through improved policy enforcement.Implementation of the 3R principles (Reduce, Reuse, Recycle) to optimize resource utilization.Clear communication and scheduling to ensure waste management policies are consistently applied.7. ConclusionThe findings highlight the urgent need for a systematic and enforceable framework to guide construction waste management in South Africa. By integrating sustainable practices, enforcing compliance, and improving industry awareness, this research contributes to reducing environmental impact and enhancing cost efficiency in the construction sector.

Graph and download economic data for Production: Construction: Total for South Africa (PRCNTO01ZAA659S) from 1994 to 2024 about South Africa, IP, and construction.

The construction industry in Africa is poised for significant growth, with a market size of $58.42 million in 2025 and a projected CAGR of 5.07% from 2025 to 2033. This growth is driven by factors such as increased urbanization, rising population, infrastructure development, and emerging economies. Key segments include commercial, residential, industrial, infrastructure, and energy and utilities construction. Factors contributing to the growth of the African construction industry include government initiatives to improve infrastructure, the rise of public-private partnerships, and increased investment in renewable energy projects. Additionally, technological advancements such as modular construction, building information modeling (BIM), and drones are transforming the industry, leading to improved efficiency and productivity. However, challenges such as political instability, skilled labor shortages, and limited access to finance present obstacles to growth. Recent developments include: December 2023: Leading renewable energy provider Scatec ASA closed the first 60 MW of the Mmadinare 120 MW Solar Complex and is on track for the start of construction of the first utility-scale solar project in Botswana., November 2023: Teraco, South Africa’s largest data center provider, completed an expansion of its Durban facility, bringing the total area of space to 5,800 square meters (62,430 square feet). Teraco’s Durban facility opened in 2011, providing 1MW across 600 square meters (6,460 square feet). In 2018, a previous expansion was announced, adding 1,000 square meters (10,765 square feet) of white space to the site, bringing the total space to 2,000 square meters (21,530 square feet).. Key drivers for this market are: 4., Rapid urbanization driving the market4.; Economic development. Potential restraints include: 4., Political and Regulatory challenges4.; Skills and Labor Shortages. Notable trends are: Infrastructure construction projects driving the market.

The African construction industry, valued at $58.28 billion in 2025, is projected to experience robust growth, with a compound annual growth rate (CAGR) of 4.83% from 2025 to 2033. This expansion is fueled by several key drivers. Significant infrastructure development initiatives across the continent, aimed at improving transportation networks, energy grids, and communication systems, are driving substantial demand. Rapid urbanization and population growth are also contributing factors, creating a need for new residential and commercial buildings. Furthermore, growing investment in renewable energy projects and industrial expansion are further stimulating sector growth. While challenges remain, such as inadequate funding for certain projects, regulatory hurdles, and skills gaps within the workforce, the long-term outlook for the African construction sector remains positive. Government initiatives focused on improving ease of doing business and attracting foreign investment are expected to mitigate some of these challenges. The industry's segmentation, encompassing commercial, residential, industrial, infrastructure, and energy & utilities construction, along with diverse construction types (additions, demolition, and new constructions), offers opportunities for varied players, from large multinational corporations like China Communications Construction Group and Vinci to local and regional contractors. The market's regional distribution is expected to show significant variation, with certain regions experiencing faster growth than others. North Africa, benefiting from relatively stable economies and large-scale infrastructure projects, is likely to represent a substantial portion of the market. Sub-Saharan Africa, while facing unique challenges, will witness considerable growth driven by investments in key sectors like mining and agriculture. The construction type segment will likely reflect similar trends, with new constructions dominating the market share due to the burgeoning infrastructure needs and urban expansion. The industry's ability to adapt to evolving technological advancements, such as Building Information Modeling (BIM) and sustainable construction practices, will significantly influence its future trajectory and competitive landscape. A focus on efficient project management and risk mitigation strategies will be crucial for sustained growth and profitability. Recent developments include: December 2023: Leading renewable energy provider Scatec ASA closed the first 60 MW of the Mmadinare 120 MW Solar Complex and announced that it was on track for the start of construction of the first utility-scale solar project in Botswana.November 2023: Teraco, South Africa’s largest data center provider, completed an expansion of its Durban facility, bringing the total area of space to 5,800 sq. m (62,430 sq. ft). Teraco’s Durban facility opened in 2011, providing 1 MW across 600 sq. m (6,460 sq. ft). In 2018, another expansion was announced, adding 1,000 sq. m (10,765 sq. ft) of white space to the site, bringing the total space to 2,000 sq. m (21,530 sq. ft).. Key drivers for this market are: 4., Rapid Urbanization Driving the Market4.; Economic Development. Potential restraints include: 4., Rapid Urbanization Driving the Market4.; Economic Development. Notable trends are: Infrastructure Construction Projects Driving the Market.

Middle-East and Africa Buildings and Construction Sheets Market is Segmented by Material (Bitumen, Rubber, Metal, and Polymer), End User (Residential, Commercial, and Industrial), and Country (Saudi Arabia, United Arab Emirates, Iran, South Africa, and Rest of MEA). The report offers market size and forecasts for all the above segments in value (USD billion).

South Africa GDP: GVA: Construction data was reported at 39,194.242 ZAR mn in Dec 2024. This records an increase from the previous number of 38,382.242 ZAR mn for Sep 2024. South Africa GDP: GVA: Construction data is updated quarterly, averaging 25,092.970 ZAR mn from Mar 1993 (Median) to Dec 2024, with 128 observations. The data reached an all-time high of 45,619.150 ZAR mn in Jun 2019 and a record low of 3,618.622 ZAR mn in Sep 1993. South Africa GDP: GVA: Construction data remains active status in CEIC and is reported by Statistics South Africa. The data is categorized under Global Database’s South Africa – Table ZA.A012: SNA 2008: GDP: by Industry: Current Price.

The South African construction industry is expected to grow by 6.1% in real terms in 2021 – up from a contraction of 16.5% in 2020. The industry’s output was severely affected by the outbreak of the Coronavirus (COVID-19) pandemic, with the country imposing a strict six-week lockdown in response to the outbreak. Reflecting the pandemic’s impact on construction activities, the industry’s value-add fell sharply by 21.6% year on year (YoY) in Q3 2020, which was preceded by a 33.3% contraction in Q2 2020, according to Statistics South Africa (Stats SA). The industry was also one of the hardest hits in terms of employment, losing 259,118 jobs at the end of Q3 2020, compared to that at the end of Q3 2019. Read More

The South Africa construction equipment market is expected to reach USD 573.7 million by 2029 from USD 431.7 million by 2022, growing at a CAGR of 4.15%.

The Africa data center construction market by investment was valued at USD 1.26 billion in 2025 and is expected to reach USD 3.06 billion by 2030, growing at a CAGR of 15.94% during the forecast period.

The South African construction industry has been in decline since 2017, with the industry’s output value in real terms contracting by 3.3% in 2019. This decline is attributed to an economic slowdown, coupled with weak consumer and investor confidence, affecting public and private sector investments in construction projects. The negative impact will persist as the industry continues to be hit hard by the impact of high national debt, labor shortages, and little infrastructure spending amid a depressed economy. Read More

South Africa ZA: Production Index: Construction data was reported at 113.943 2010=100 in Sep 2017. This records an increase from the previous number of 110.755 2010=100 for Jun 2017. South Africa ZA: Production Index: Construction data is updated quarterly, averaging 97.180 2010=100 from Mar 2000 (Median) to Sep 2017, with 71 observations. The data reached an all-time high of 149.903 2010=100 in Dec 2008 and a record low of 46.688 2010=100 in Mar 2002. South Africa ZA: Production Index: Construction data remains active status in CEIC and is reported by International Monetary Fund. The data is categorized under Global Database’s South Africa – Table ZA.IMF.IFS: Production Index: Quarterly.