Monday, 31 August 2015 15:15

Government non payment hindering growth in the Industry

A major obstacle to growth in the building and construction industry is the non-payment by government and municipalities in the country. Projects are often stalled, as developers wait to be paid. With a government squeeze on infrastructure spending, the outlook for civil construction was tight.

  • growth is being hindered by unsustainable debt to gross domestic product ratings and warnings from international ratings agencies,
  • government’s cut in infrastructure spending has come at a bad time, with load-shedding and supply side constraints,
  • there is expected to be a decline in spending in health facilities over the next two to three years, mainly the construction of hospitals and clinics,
  • The building of schools is expected to take a knock, given the drop in infrastructure spending on education,
  • spending on roads was expected to flatten out