South Africa’s construction sector, a key driver of economic growth, infrastructure development and job creation, has entered a new phase of reform and renewal with the 2025 Nation Building Summit held in Boksburg this week. Minister for Public Works and Infrastructure Dean McPherson hailed the summit as a “historic milestone”, stressing that the government is taking decisive action to restore trust, improve regulatory integrity, accelerate delivery times and strengthen accountability across the industry.
The three-day gathering, organized by the Construction Industry Development Board (cidb) in collaboration with the Department of Public Works and Infrastructure (DPWI), brought together leaders from government, the private sector, labor, academia, civil society and regulatory bodies. Held under the theme ‘Enabling Infrastructure: Improving Construction Industry Performance’, the summit served as an important platform to assess progress, confront ongoing challenges and chart a unified roadmap for the future of South Africa’s infrastructure.
“Faster, smarter and more affordable”
Speaking to the media, Minister McPherson underlined the Government’s renewed determination to accelerate infrastructure deployment based on a new framework, including the Construction Action Plan, strengthened monitoring measures and strengthened social facilitation structures.
He stressed that efficient project implementation is not only a technical requirement, but also a national priority for economic stability, job creation and service delivery. “The government remains focused on delivering infrastructure faster, smarter and more affordable,” he said.
Mr McPherson stressed the urgent need to transform the construction sector into a profitable industry that can meet South Africa’s infrastructure lag, increasing urbanization pressures and economic recovery goals.
Construction leads employment growth
In a significant development, Ministers welcomed the latest Quarterly Labor Force Survey (QLFS) results showing that the construction sector accounted for more than 50% of all jobs created in the third quarter of this year.
130,000 new jobs added in construction
Construction was the biggest contributor to new jobs in the third quarter
Employment gains reflect early signs of sectoral recovery
“These numbers confirm what we’re seeing on the ground,” McPherson said. “Since we committed to addressing construction cancellations at our first summit in Durban last year, we are now seeing green shoots of growth.”
Crackdown on construction mafia activities
One of the most pressing issues addressed at the summit was the increase in disturbances at construction sites and organized extortion activities, commonly referred to as construction mafia activities.
McPherson reported significant progress:
He attributed this progress to stronger collaboration between law enforcement, businesses, communities and governments, and reaffirmed that authorities will continue to crack down on criminal organizations that threaten livelihoods, public safety and infrastructure.
cidb takes action against contractor misconduct
CIDB Chairman Kurile Nzo has announced that 40 contractors have been deregistered after it was discovered that they had colluded with certain CIDB employees to fraudulently obtain inflated ratings.
“There are too many unfinished projects,” Nzo said. “We have to be tough. Contractors who game the system undermine the quality of projects, waste public funds and undermine trust.”
He highlighted CIDB’s commitment to improving contractor credibility, upholding professional ethics and protecting the integrity of grading and procurement systems.
Strengthening infrastructure delivery: major government interventions
Speaking on the final day of the summit, Deputy Minister Sihle Zikalala reaffirmed the government’s commitment to deep structural reforms, increased accountability, and efficient infrastructure development. He outlined a series of powerful new measures, including:
1. Infrastructure budgeting system (BFI) reform
Restructured to operate four bidding windows per year, improving access, predictability, and efficiency.
2. R15 billion infrastructure bond issuance
A dedicated financing vehicle to support large-scale, affordable infrastructure projects.
3. Establishment of Infrastructure Finance and Introduction Support Organization (until March 2026)
A professional organization that facilitates project preparation, management, financial modeling, and execution.
4. Guidelines regarding unauthorized bidding
Designed to accelerate project implementation while ensuring transparency and regulatory compliance.
“These reforms underscore the government’s commitment to strengthening performance, accountability and inclusive growth,” Zikalala said.
The need for an independent engineering oversight body
DPWI Director-General Sifiso Mdakane stressed the need for more consistent monitoring and standardization in engineering and infrastructure development. He said South Africa’s rapidly changing environment is being shaped by:
We need stronger systems to ensure safety, compliance, quality, and professional integrity.
Mr Mdakane emphasized that the proposed Engineers General (EG) is an important agency that will:
Oversee large engineering projects
Standardize engineering practices
Strengthening legal and regulatory compliance
Improve project quality and schedule
Serving as a national hub for engineering excellence
“There is an increasing need for an independent body,” he warned.
Roadmap for sector restructuring and expansion
Government, industry and labor participants concluded that revitalizing the construction sector is essential to rebuilding South Africa’s economy and restoring public confidence in infrastructure development. The following was reaffirmed at the summit:
Construction is the basis of economic development
Professional ethics and accountability are non-negotiable
Cooperation is essential to overcome systemic challenges
Infrastructure provision must be transparent, timely, and community-oriented
As the 2025 Nation Building Summit draws to a close, leaders committed to a shared vision of a safe, competitive, corruption-free and high-performing construction industry that can provide the infrastructure needed for a modern and resilient South Africa.
