Market Trends of South Africa Prefabricated Buildings Industry
This section covers the major market trends shaping the South Africa Prefabricated Buildings Market according to our research experts:
Government Initiatives Helping the Construction Industry
The construction industry's output has been severely affected by the COVID-19 pandemic. To help the economy recover from the crisis, in June 2020, the government announced a 10-year infrastructure investment plan worth 124.7 billion USD to invest in housing, energy, agriculture, transportation, and water, health facilities, and the digital infrastructure sector. The construction industry witnessed a slow but steady recovery in 2021 with Afrimat's construction index increasing by 2.8% in the third quarter of 2021.
Officials from the World Bank, African Development Bank (AfDB), and South African Development Bank (DBSA) have pledged to support infrastructure construction and are expected to create more than 1.8 million jobs in the next 10 years.
In another positive development, in October 2020, the government launched an ambitious 60 billion USD economic reconstruction and recovery plan, which has four priority interventions: basic investment in facilities, expanding energy production capacity, creating jobs to support livelihoods, and industrial growth. In October 2021, South Africa's president Cyril Ramaphosa announced plans to designate the Sedibeng area as an SEZ, with the SEZ expected to attract 99 investment opportunities worth USD 3 billion. The government's plans to expand the number of Special Economic Zones (SEZ) throughout the country will also help the industry grow.
Impact on Labour Force in South Africa
In South Africa, the labor market has been severely affected by COVID-19. Except for essential services and emergency repairs and maintenance related to the health sector, all work on the construction site was suspended.
Global mass production closures, supply chain disruptions directly impacted Africa's access to industrial parts and manufactured goods. The construction industry has also suffered a considerable blow, as the Association of Builders reported that they are facing cash flow challenges due to construction shutdowns.
Many companies faced obstacles like contractual obligations, resource availability, deliverables, health and safety measures, and project delays or cancellations. Due to these conditions labor force decreased drastically. Many migrant workers left the country and went to their home country. Many construction projects delayed due to the shortage of labor force in the country.
