Construction sector shows early rebound as reforms boost growth and jobs – Macpherson

Macpherson attributed the early signs of recovery to a series of reform measures implemented across the public infrastructure ecosystem.

Public Works and Infrastructure Minister Dean Macpherson has welcomed new third-quarter economic figures from Statistics South Africa (Stats SA) showing the first signs of recovery in the construction sector after three consecutive quarters of decline. According to the data, the sector grew by 0.1% in the third quarter—small but symbolically significant progress for an industry that has faced severe disruptions and underperformance.

This follows the Quarterly Labour Force Survey, which revealed that the construction industry created 130 000 jobs in the same quarter—nearly half of all new jobs generated across the entire South African economy. The Minister said the combination of rising output and sharp employment growth reflects improving conditions in a sector widely regarded as central to economic revitalisation.

Reforms Across the Infrastructure System Beginning to Take Hold

Macpherson attributed the early signs of recovery to a series of reform measures implemented across the public infrastructure ecosystem. These include:

• Stricter procurement oversight, reducing opportunities for corruption and cost escalation.

• Decisive action against non-performing contractors, including contract termination and blacklisting where necessary.

• Strengthened project preparation through Infrastructure South Africa (ISA) to reduce delays and improve execution.

• Reduction in construction mafia disruptions, thanks to increased law enforcement presence and community engagement.

• A renewed push to unblock stalled or abandoned projects, restoring investor confidence.

The Minister said these efforts are beginning to “restore the credibility and stability of the construction environment,” sending early signals of confidence to contractors, financiers and investors.

Challenges Remain, but Momentum Is Building

Macpherson acknowledged that the sector still faces significant obstacles, including budget constraints, capacity limitations in some municipalities, long-standing maintenance backlogs and ageing infrastructure across water, roads, sanitation and public facilities.

However, he stressed that the new data confirms the sector is moving in a positive direction.

“This is not yet the finish line, but it is a clear indication that construction is moving in the right direction. Our task now is to consolidate this early momentum, accelerate reforms, and increase infrastructure investment to drive economic growth and job creation,” he said.

Long-Term Improvements Through SACAP Reforms

The Minister highlighted the recently launched South African Construction Action Plan (SACAP)—introduced at the end of October—as a major milestone in stabilising and professionalising the sector. SACAP aims to:

• improve governance and accountability across the infrastructure delivery chain

• professionalise the construction industry

• address fraud, inefficiency and skills gaps

• strengthen collaboration between national, provincial and local government

• support small and emerging contractors

• ensure better planning, budgeting and execution of public infrastructure projects

Combined with the National Treasury’s renewed commitment to infrastructure spending, these reforms are laying the groundwork for more predictable, sustained construction activity.

Construction Seen as a Driver of National Recovery

Macpherson reiterated that the construction sector remains one of South Africa’s strongest job creators and a vital engine for inclusive economic growth.

“When construction grows, the country grows,” he said. “With the right focus and discipline, we can turn these early gains into sustained long-term expansion that creates jobs, supports small contractors, and delivers the infrastructure communities depend on.”

He added that sustained growth in the construction industry is essential to building a more resilient and prosperous South Africa.