The construction industry was forecast to grow by 6.2 percent this year, but would likely remain in a recovery phase after a near recession that was exacerbated by Covid-19 hard lockdown.
This growth was expected to have a beneficial impact on employment, while contributing to improved sentiment towards the economy, said GVK-Siya Zama CFO John de Sousa.
There was improved sentiment in the market, largely due to the government's recent emphasis on growing public-private partnerships and increasing infrastructure spend, he said in a statement yesterday.
However, it was unlikely there “will be an immediate recovery” in domestic construction as the Covid-19 pandemic starts to ease or in response to government’s positive news for the industry, he said.
“The next 12 to 18 months will continue to be a period focused on attaining normality as the market stabilises after the pandemic. In this time, it can be expected that margins will remain under pressure in the short term. However, in the longer term, they will continue to grow,” he said.
GVK-Siya Zama, one of the country’s largest privately held construction companies, has offices nationwide and employs about 1 500 people directly.
De Sousa said: “The company is in its fourth consecutive year of growth, despite the near recession and Covid-19 pandemic.”
He said there had been an uptick in enquiries from the private sector, especially from property owners looking to repurpose and remodel office space, as work-from-home practices, despite Covid loosening its grip.
“There are a lot of property vacancies, especially in central business districts, that landlords will need to deal with,” he said.
BUSINESS REPORT ONLINE