Infrastructure: Construction industry ready and able to deliver
Concerns about the capacity of South Africa’s depleted and financially-distressed construction industry to deliver the government’s massive infrastructure investment plan have been debunked by industry associations and analysts.
However, there are concerns about how long it will take for any of the Strategic Infrastructure Projects (SIPs) unveiled and gazetted by the government to be awarded, as well as corruption in the tender process.
Read: Bidding for a fair shake
The government in July 2020 unveiled the first tranche of 50 SIPs and 12 special projects that have been fast-tracked to stimulate the economy post-Covid-19.
These projects form part of the government’s larger R2.3 trillion infrastructure drive over the next decade.
The capacity concerns have been prompted by the decimation of South Africa’s listed construction sector.
The listings of Group Five and Esor were removed from the JSE in June after both went into business rescue, while the future of Basil Read, another former JSE construction sector heavyweight, is also uncertain after its construction business went into business rescue in June 2018.
Read more article on Moneyweb News