New-found prospects and opportunities expected in the construction industry in 2018
The year 2018 has brought about significant changes in South Africa. The Business Report states that recent changes in the South African government have brought about a palpable change of mood in our economy and although it is still too early to experience significant economic shifts, the change is sending encouraging signals to the market.1 So after tough times, the construction industry is looking forward to new-found, well-managed and better sustained prospects.
The construction industry is poised to benefit in the medium- to long- term
The industry is generally a good indicator of economic performance and is also a significant contributor to employment and economic growth. Last year this contribution averaged 3.9% to the country’s gross domestic product according to PwC’s report: SA construction 3rd edition (2017).1
The 2018/9 Budget shows that close to R50 billion is earmarked for infrastructure-related spending, including on schools, industrial and public infrastructure. President Cyril Ramaphosa and Finance Minister Nhlanhla Nene have committed to creating a positive economic environment that will attract higher levels of investment and garner a positive perception of South Africa.
A boost in the economy could raise construction activity
A conducive economic environment is very positive for our industry. Furthermore, this raises the general level of economic activity. It heightens the possibility that firms will make positive investment decisions, including putting their money in fixed assets.
According to a report by Business Essentials, construction in Social Housing related to Transport Hubs and/or Proximity to Places of Work will lead with growth turnaround in the industry. 2
Credit Guarantee exhibits at the Totally Concrete African Construction Expo
At Credit Guarantee, we are excited to be exhibiting at the Totally Concrete African Construction Expo on 16 & 17 May at Gallagher Convention Centre, Johannesburg. The event caters to the entire African construction, cement and concrete industries and is the prime meeting place for the construction industry.
We invite you to come and visit us in our exhibition space at Stand 22 where we explain how our leading construction and bonds and surety solutions can assist your business to realise its goals. This is one of the most relevant industry events for those who are already involved in the construction business in Africa, or want to venture into the market.
Credit Guarantee has over 60 years’ experience in providing leading domestic and international trade credit insurance and bonds and surety cover to a diverse range of businesses. Partner with us and safeguard yourself against non-performance on the part of your contractor or your debtors – contact us at any one of our offices nationwide.
Credit Guarantee is an authorised Financial Service Provider. Licence No. 17691