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OPINION: Built Environment Professionals' participation in upcoming national elections is vital

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Mlondi Cele, a Built Environment Professional, emphasizes the significance of the upcoming national elections for the construction and built sectors. He encourages stakeholders to actively participate and articulate their expectations to influence economic policies and attract investments. Cele believes that the involvement of industry professionals and stakeholders in the elections can positively impact the industry's future and create favorable outcomes for all. The South African elections are of paramount importance to the construction and built sectors, as they have the potential to significantly influence their future trajectories. Economic, policy, and regulatory changes stemming from the elections can either catalyze growth or present novel challenges. Consequently, it is a pivotal juncture for stakeholders in these industries to actively participate in the electoral process and advocate for their interests. The construction and built environment industry plays a central rol
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NEW: SA Building activity plunged in January 2021

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A further -61.7 percent y/y drop in activity in the non-residential sector was largely responsible for January’s poor result. Activity in the residential building space also fell markedly from December’s 5.5 percent y/y lift.


Investec economist Lara Hodes said these results were consistent with the Bureau for Economic Research’s (BER) latest building survey for the first three months of 2021, which saw confidence among players in the building sector, as measured by the FNB/ BER Building Confidence Index, fall further into depressed territory.

Confidence among non-residential participants fell to 10 points, the second lowest recorded reading since 1999, suggesting 90 percent of respondents in this category were dissatisfied with current conditions, according to the BER.

The lack of new building demand remained a key constraint among players in the non-residential sector, building materials were in shorter supply, with 60 percent of respondents indicating that such shortages were hindering normal business operations. Supply chain hindrances as a result of lockdown restrictions likely exacerbated this.

Hodes said the non-residential pipeline was looking lacklustre and fell by a further -72.3 percent y/y in January, after plummeting by -54 percent y/y in December 2020. This did not bode well for this sector in the near-term.

Also read: Building and construction sector activity levels continue to recover

“Indeed, office vacancy rates remain elevated, worsened by Covid-19 as many businesses have shut their doors, downscaled or transitioned to remote working,” she said.

“Government’s focus on infrastructure development as stated in its reconstruction and recovery plan is positive for the construction industry, however domestic growth remains at risk from heightened rotational load shedding and a slow vaccination rollout,” she said.

Steel and Engineering Industries Federation of South Africa chief economist Chifipa Mhango said the rolling out of key government infrastructure projects to the value of R791.2bn in the next three fiscal years was also good news for the metals and engineering sectors.

Source. IOL

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