South African Building Industry in Line for More State Support

Construction site

Localization policies seek to lift output, create employment.

November 8, 2021
Prinesha Naidoo - Bloomberg

South Africa’s government is planning more measures to bolster its ailing building industry after banning the use of imported cement on state construction projects.

“Government is undertaking research across a range of construction-related products where there appears to be significant potential for localization,” Stephen Hanival, chief economist at the Department of Trade, Industry and Competition, said in an emailed response to questions. “Further announcements will be made in due course.”

The country’s preferential procurement policy framework enables the department to designate sectors for localization in line with national development and industrial policy goals. While the government has pursued localization since 2014, it has become more strategic since the advent of the pandemic with business, government and labor groups agreeing on an initial list of 42 products and sub-sectors that should be prioritized, Hanival said.


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