The South African government’s commitment to infrastructure development – with an estimated R1.3 trillion earmarked for public infrastructure projects over the next three years – was the central focus of a panel discussion where visible green shoots were acknowledged and significant structural issues impeding progress highlighted.
Leading figures in South Africa’s construction industry are cautiously optimistic about the sector’s future, a recent panel discussion revealed at Collective Wisdom 2025, which was hosted by construction law specialist MDA Attorneys.
Leaders from major construction companies discussed the industry’s opportunities and challenges.
Numerous challenges included slow rollout, bid cancellations, insufficient maintenance and funding, skills emigration, corruption, the uneven playing field created by foreign contractors, and the government not listening closely enough to the industry.
Russell Crawford, CEO of Stefanutti Stocks, noted that while there is a high probability of projects being awarded, the process remains extremely slow, with many projects facing cancellation. “We are cautiously optimistic,” Crawford stated, adding that even the planned infrastructure spending until 2030 is insufficient to properly maintain South Africa’s infrastructure needs.
Clinton Crowie, CEO of ENZA Construction, echoed these sentiments, pointing out that despite promising signs after a difficult period, project awards remain inconsistent. Crowie emphasised the potential for the construction sector to address unemployment through skills training but stressed that consistency of projects is essential for the private sector to develop and offer training.
“The renewable energy sector is a significant opportunity,” said Berto Smit, Managing Director of WBHO Civils. However, he noted challenges including capacity constraints on Eskom’s side. Smit also highlighted regulatory inconsistencies, observing that government entities have different procurement criteria that makes it extremely difficult for industry to respond to.
Conrad Stark, CEO of EHL Engineering Group, expressed concern about the lack of activity in the engineering design phase of projects. “I’m puzzled about why engineering activity is not what it should be. In infrastructure work, if someone is not designing it, the constructors won’t have anything to build,” Stark remarked.
All panellists identified bureaucratic delays and funding challenges as major obstacles. Public-private partnerships (PPPs) were recognised as potential solutions, but panellists expressed frustration at the lengthy timelines to reach financial close (often taking up to two years) and the frequency of bid cancellations.
“We spend a fortune on PPP bids, and they just get cancelled,” Crawford stated, questioning whether construction companies were sometimes being used merely to develop feasibility studies rather than award actual projects.
The panellists also raised concerns about the uneven playing field because foreign contractors seemingly don’t have to meet the same requirements as local companies.This could limit the economic benefits to South Africa.
When asked what would transform their cautious optimism into confidence, the construction leaders emphasised the need for trust, engagement, and delivery. Smit called for meaningful dialogue with the government: “I am involved with SAFCEC (South African Forum of Civil Engineering Contractors), the largest employer organisation in our industry which has put extensive effort and time into government engagement on matters affecting our industry. We expect them to take note of our concerns and possible solutions, but currently, there is no meaningful conversation.”
The construction sector has already contributed significantly to employment growth by adding around 178,000 jobs, according to Crawford, who noted that the industry “hasn’t gotten busy yet.” All panellists agreed that with proper engagement and removal of bureaucratic obstacles, the construction industry could play a crucial role in addressing South Africa’s infrastructure challenges and unemployment crisis.
The Constructors Forum was part of the 11th annual Collective Wisdom conference hosted by MDA Attorneys. It provided valuable insights into the state of South Africa’s construction industry, highlighting both opportunities for growth and the need for concerted action to overcome existing barriers.
