Fitch Solutions has announced that it expects the South African construction industry to emerge from its recession in 2019 and grow at an expected rate of 2.4%.
While by no means mind-blowing, the expected growth is likely to indicate a turn around in fortunes for South Africa’s largest construction firms which have been languishing in near impossible conditions for the past few years.
Aveng, Basil Read and Group Five will possibly not be celebrating just yet, however, as the percentage growth is low relative to what is required for a complete turnaround.
In its 2019 sub-Saharan Africa construction growth outlook, Fitch says it expects the construction industry in the region to grow by 6.8% year on year, ‘which will continue over the medium term as investment flows into the region in order to meet pressing infrastructure needs’.
Ethiopia will remain the region’s top performer, with its construction industry value likely to increase 12.3%.
But construction in Zambia is likely to contract 2.3% in 2019 as the government faces a fiscal crisis and rising risk of debt distress. The sector in Namibia is forecast to slow down as major projects come to an end.