Confidence in South Africa’s civil construction sector surged to its highest level in more than a decade in the fourth quarter of 2025, buoyed by stronger activity and profitability in key infrastructure projects. The FNB/BER civil confidence index jumped nine points to 52, the best reading since 2016 and the joint highest in 11 years, indicating that more than half of respondents were satisfied with prevailing business conditions, according to the latest survey released on Tuesday. The current reading means that more than 50% of respondents were satisfied with prevailing business conditions.
Senior FNB economist Siphamandla Mkhwanazi said the uptick was supported by an improvement in construction activity, particularly in renewable energy and mining projects. “The survey results point to a much less pronounced decline in activity in the [fourth quarter of 2025] off the back of renewable energy and mining projects,” he said. Stats SA data showed the real value of construction works contracted by 3% year on year in the third quarter, but the latest survey suggests the downturn has eased.
Profitability also strengthened, with the index measuring profit growth reaching its highest level since 2007. “It is a stretch to claim that profit margins are as generous as they were in the run-up to the 2010 Fifa World Cup — when work was much more abundant — but it is clear that civil contractors are enjoying better margins,” Mkhwanazi added. “This undoubtedly contributed to the better business mood.” Looking ahead, respondents expect activity to continue on this upward trajectory in the first quarter.
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However, order books have improved only marginally, suggesting that the recovery remains narrowly based. Much of the work continues to come from the energy and mining sectors, reflecting limited progress in other areas of infrastructure investment, despite President Cyril Ramaphosa’s pledge to turn South Africa into a construction site through a R1-trillion infrastructure drive over the medium term. “The civil construction survey is the best non-official gauge for infrastructure investment.
On that score, the survey results are quite positive,” Mkhwanazi said. “However, the spread of activity seems to be clustered in renewable energy generation and mining, which is not bad — or even surprising — but does suggest that key reforms in other areas of the economy are still lacking.” The construction industry is also the country’s biggest contributor to job creation. According to Stats SA, the sector added130,000 new jobsin the third quarter.
“Infrastructure is thebackbone of developmentbecause, among many other reasons, it bolsters economic competitiveness and sustainability,” Ramaphosa said at the National Construction Summit in November. “Without infrastructure, economic growth slows down, inequality deepens and the quality of life declines.” The index, compiled by FNB and the Bureau for Economic Research (BER) at Stellenbosch University, measures sentiment among civil contractors on a scale of zero to 100, with 50 representing a neutral reading. The latest survey was conducted between November 10 and 24.
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