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South Africa's construction industry is expected to grow at a compound annual growth rate (CAGR) of 3.1% from 2023 to 2027, driven by investments in infrastructure, renewable energy, and residential construction. The government's Infrastructure Investment Plan is expected to inject over R1.5 trillion into infrastructure projects over the next five years.
South Africa building government procurement
The South African government is a significant procurer of building products and services, with an annual procurement budget of over R200 billion. The government's procurement process is governed by the Public Finance Management Act (PFMA) and the Construction Industry Development Board (CIDB) regulations.
The South African government's construction needs are extensive, encompassing not just physical buildings but also the entire project lifecycle. They procure a wide range of services, from initial planning and design (engineering, quantity surveying) to execution and ongoing maintenance (construction, project and facilities management). In short, they handle everything from laying the bricks to keeping the lights on.
The top authorities for South African building procurement are:
Department of Public Works and Infrastructure (DPWI)
South African National Roads Agency Limited (SANRAL)
Transnet Freight Rail
Eskom
State Infrastructure Investment and Development Corporation (SIIDC)
The top winners of South African building procurement are:
Murray & Roberts
Aveng
Group Five
WBHO
Basil Read.
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