South Africa’s construction industry is getting bigger in rand terms, but smaller in economic importance.
According to Statistics South Africa (Stats SA)’s 2024 Construction Industry Survey, the sector’s contribution to the economy has steadily declined over the past decade, despite strong growth in turnover.
ALSO READ:
Big firms, fewer Jobs: How enterprise size shapes SA’s construction industry
Construction sector income rises to R605.6bn, but job growth lags
Construction generated more than R605 billion in income in 2025, growing at an average annual rate of 8.9% since 2020.
Despite the growth, the sector’s contribution to the country’s Gross Domestic Product (GDP) has fallen steadily over the past decade.
The construction industry accounted for 3.9% of GDP in 2014.
By 2024, it dropped to just 2.4%.
The decline reflects years of weak investment, project delays, and sluggish infrastructure spending that have weighed on the sector.
Employment has also failed to keep pace with revenue growth.
While industry income expanded by almost 9% yearly, between 2020 and 2024, employment grew by just 3% annually, reaching slightly over 539,000 workers.
Stats SA’s Construction Industry Survey also shows the sector remains highly concentrated.
Large construction firms generated 43% of industry income but employed just over 21% of workers, while micro enterprises accounted for almost 45% of employment, despite contributing less than a quarter of total income.
The figures suggest that although construction activity has recovered from the COVID-19 pandemic, the sector has yet to regain the economic significance it once held.
For policymakers, the data highlights the challenge of reviving infrastructure investment while ensuring growth translates into meaningful job creation.
Never miss a major story. Get breaking news and the latest developments from South Africa and beyond as they happen.