Construction sector welcomes R700bn ‘project pipeline'
Construction industry bodies, companies and analysts have welcomed President Cyril Ramaphosa’s State of the Nation (Sona) statement that the Infrastructure Fund has a project pipeline with potential investments of over R700 billion over the next 10 years.
However, serious doubt has been cast about the ability of these projects to revive the beleaguered construction sector because of government’s previous implementation and delivery failures.
David Metelerkamp, senior economist at construction market intelligence firm Industry Insight, says he is leaning more towards Ramaphosa’s comments being “lip service” rather than leading to action because of his doubts about “all this private investment somehow magically expected in an environment that is politically very uncertain” and investor and consumer confidence being at all-time lows.
- Roy Cokayne
#Sona20: Grinaker-LTA welcomes infrastructure initiatives
Construction group Grinaker-LTA has welcomed President Cyril Ramaphosa's announcements during Sona 2020 relating to the various economic and social infrastructure initiatives and the special task force to fight construction site disruptions. Grinaker-LTA chairman Mlu Clive Manci says the initiatives are to be commended as they will help the struggling construction sector.
Construction contributes about 4% to South Africa’s GDP and is a key sector for the economy. The initiatives announced by President Ramaphosa in his State of the Nation address provide a timely boost for a sector battling low confidence and weak investment. “Additionally, the president’s announcement that special units will be established to fight criminals who extort money from construction companies is unexpected but very welcome. With margins so tight in the construction industry, unanticipated costs can be the difference between survival and going under for many companies, and especially the smaller construction companies,” he says.
Slew of senior appointments for construction giant Grinaker-LTA
Construction group Grinaker-LTA has appointed Colin Hoad as Chief Financial Officer. A member of the South African Institute of Chartered Accountants (SAICA), Hoad joins the company from Stefanutti Stocks where he was Business Unit Financial Director. Before that, Hoad was Financial Director at multinational engineering and design firm Parsons Brinkerhoff.
Abdool Shaikh has been appointed Managing Director of Civil Engineering. Shaikh is a Grinaker-LTA veteran, having spent 26 years at Aveng Grinaker-LTA before taking a sabbatical in 2015. He is currently completing a master’s degree in business management through Henley Business School.
Grinaker-LTA has appointed Tracey Smith as Senior Commercial Executive. She joins from Mauritian engineering, contracting and services company, Sotravic Limitée, where she was commercial manager. Smith has 25 years’ experience in the project, construction and mining sector. She has worked on mega construction projects valued at hundreds of billions of Rands.
Nelson Rodrigues has been appointed General Manager of Kwazulu-Natal. Rodrigues has 22 years’ experience in building and civil engineering. Prior to joining Grinaker-LTA, Rodrigues was Operations Director of Stefanutti Stocks Mozambique.
- Construction World