Beleaguered construction industry pins hopes on Mboweni plan

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The economic strategy blueprint to boost SA’s growth and job creation, is meant to reverse the downward trend in SA’s growth and competitiveness.

Author of the Afrimat construction index says bias towards labour-intensive activities bodes well for the sectorThe Afrimat quarry in Greenbushes, Port Elizabeth Picture: DARYN WOOD

Independent economist Roelof Botha spoke to Business Day TV about the factors that could lead to a pick up in construction activity in the second half of the year. Botha said the gradual implementation of the new plan could boost the fortunes of SA’s battered construction sector “and lead to a new sustained growth path”. He said there was evidence that the government wanted to rectify the declining ratio of infrastructure spending to consumption spending by the public sector.

“It is most encouraging that the SA National Roads Agency recently announced its belief in an imminent resurgence of road construction projects.”

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