n Africa Insight - An analysis of the challenges facing emerging contractors in the Nelson Mandela Metropole, South Africa

Volume 36, Issue 3_4
  • ISSN : 0256-2804


The construction industry is an important player in the economy of South Africa. The South African government is the single largest construction client, representing between 40%-50% of the entire domestic construction expenditure in the country. Notwithstanding this, emerging contractors face serious challenges, including a sharp decline in employment over the last 20 years, a steep decline in gross domestic fixed investment, slow delivery due to poor capacity, low productivity, poor quality workmanship and low profit margins for contractors. The aim of this article is to explore the difficult journey which emerging contractors currently undertake through a survey analysis of the industry, and to provide recommendations to overcome these challenges. The survey herein discussed was restricted to emerging contractors in the Nelson Mandela Metropole.

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