DStv Channel 403 Wednesday, 06 November 2024

Construction collapses in first quarter of 2024

JOHANNESBURG - The construction sector has not been able to build much business in the first quarter.

It's being blamed on the high cost of doing business and dysfunctional municipalities.

The latest Afrimat Construction Index places the sector at 103.7 compared to 117.3 in the previous quarter.

WATCH: CRUMBLING CONSTRUCTION SECTOR IN NEED OF URGENT REFORM

It shows high capital needs at current prime lending rates means costs are at their highest level in 14 years and businesses in the sector are struggling to keep up.

Dysfunctional municipalities also make it difficult for businesses to invest in communities.

Now, all hope is being placed on the new administration.

The sector is hoping for policies to protect businesses and lower interest rates.

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