President Ramaphosa champions construction sector as key driver of economic growth and job creation at national summit

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Boksburg – President Cyril Ramaphosa has highlighted the construction industry as a key force poised to move South Africa’s economy forward again, noting its role in creating more than half of new jobs in the third quarter of 2025. Speaking at the second annual Nation Building Summit in Boksburg, Ekurhuleni on Thursday, he highlighted how infrastructure projects can boost growth, reduce inequality and improve the lives of all people. The event, held at the Birchwood Hotel in Gauteng, brought together government leaders, industry experts and stakeholders to promote faster construction and improvements to public works. Mr Ramaphosa’s words came after latest data showed the sector added 130,000 jobs between July and September, contributing to a decline in the unemployment rate and showing signs of an turnaround after years of slow progress.

Summit focus: Building a nation that works for all

The two-day Nation Building Summit 2025 brought together key figures including Minister for Public Works and Infrastructure Dean McPherson, Deputy Minister Sihle Zikalala, Mayor of Ekurhuleni Governorate Nkosindiphile Xhakadza, the Prime Minister, MECs, Mayors, and representatives from business, academia, labor and civil society. Ramaphosa opened his keynote address by saying the summit’s goal is not just to grow industry, but to shape a country where everyone has access to water, sanitation, electricity, roads, schools and hospitals. He painted a picture of South Africa without fences. Children do not swim across rivers to go to school there, and all facilities are safe and modern.

He linked infrastructure to social growth, which he said increases productivity, lowers the cost of living and fights inequality. From an economic perspective, creating strong, green urban spaces attracts investment, supports trade and supports sustainable development goals. Prime Minister Ramaphosa recalled how apartheid’s poor planning left many areas without foundations and deprived people of opportunities, and how recent underinvestment in roads, railways and ports has hurt mining, agriculture and factories. He also pointed out that municipal inaction is driving out businesses and leaving communities without services.

But he highlighted success stories such as the construction of housing and public facilities since 1994 that have changed the lives of millions of people. The industry’s far-reaching impact spans manufacturing, mining, transport and services, multiplying jobs and progress.

Decreasing unemployment: construction leads the way

Mr Ramaphosa linked his message to Statistics South Africa’s latest Quarterly Labor Force Survey (QLFS), released earlier this week. The official unemployment rate fell to 31.9% in the third quarter from 33.2% in the second quarter, the first decline this year and the lowest since the end of 2024, the data showed.

Employment increased by 248,000 people, with the construction industry adding 130,000 people, more than half of the total. “The Quarterly Labor Force Survey shows that the official unemployment rate fell from 33.2% in the second quarter of this year to 31.9% in the third quarter. Employment increased by 248,000 people in the third quarter. Construction made the largest contribution with 130,000 new jobs. These statistics reflect an upturn in the industry.”

The gains came from sectors such as social services and trade, but construction stood out as the top creator. The rate of increase, including those who stopped looking for work, slowed to 41.9%. Although youth unemployment remains high at 58.5% for 15-24 year olds, overall trends are encouraging. Prime Minister Ramaphosa called this proof that infrastructure boosts the economy and the sector is once again a “flywheel of growth”.

Government push: R1 trillion for infrastructure

To maintain this momentum, Prime Minister Ramaphosa has outlined big plans including R1 trillion in infrastructure spending over the medium term. Wednesday’s Medium Term Budget Policy Statement (MTBPS) confirms this, with capital payments increasing the fastest at 7.5% annually. The shift from everyday spending to investment is aimed at reinvigorating activity.

The Sustainable Infrastructure Development Symposium held earlier this year showcased more than 250 funded projects worth R230 billion in water, energy, transport and digital sectors. Reforms such as changes to public-private partnership rules and unsolicited bidding guidelines will unlock more private funding. Prime Minister Ramaphosa wants the country to become a “construction site” with cranes everywhere, turning plans into real projects.

Dealing with threats: No room for crime or delay

He warned against adversities such as construction mafia, cable theft and vandalism, saying law enforcement agencies would deal decisively with lawbreakers. The Department of Public Works and Infrastructure’s South African Construction Action Plan sets out targets, timelines and penalties for underperformers. Block bad contractors from new business, solve cash flow problems, and use technology for real-time tracking. Each public works office will have a procurement war room to remove roadblocks and expedite bidding.

The plan will also strengthen audit, governance and skills in the sector. Mr Ramaphosa stressed that the project would be completed on time, within budget and without waste.

Global connections: the G20 and disaster-ready buildings

With just over a week to go before the G20 Leaders’ Summit in Johannesburg, which will be the first on African soil, Prime Minister Ramaphosa mentioned South Africa’s efforts at the G20 Disaster Risk Reduction Working Group. The focus is on building strong infrastructure that can withstand extreme weather events and supporting countries’ recovery after disasters. We are putting infrastructure at the heart of global progress.

Looking forward: A call to action

Mr Ramaphosa concluded by saying he looked forward to the outcome of the summit to accelerate development and was confident it would translate ideas into action for a South Africa that works for everyone. “We look forward to the outcome of this nation-building summit and are confident that it will set infrastructure development on a new trajectory.”

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