Confidence in South Africa’s civil construction sector soared to its highest level in more than a decade in the fourth quarter of 2025, driven by stronger activity and profitability in major infrastructure projects.
The FNB/BER Citizen Confidence Index rose nine points to 52, the highest since 2016 and the highest in 11 years, according to the latest survey released on Tuesday, which showed more than half of respondents were satisfied with the current economic situation. Current data means that more than 50% of respondents are satisfied with their current business situation.
FNB senior economist Sifamandla Mkhwanazi said the rise was supported by improvements in construction activity, particularly renewable energy and mining projects. “The survey results show that the decline in activity (in the fourth quarter of 2025) is less pronounced due to the impact of renewable energy and mining projects,” he said.
The real value of construction work shrank by 3% year-on-year in the third quarter, according to Stats SA data, although the latest survey suggests the economic downturn has eased. Profitability also strengthened, with an index measuring profit growth reaching its highest level since 2007.
“While it would be a stretch to claim that profit margins are as generous as they were during the run-up to the 2010 FIFA World Cup, when work was much more plentiful, it is clear that civil contractors are enjoying better profit margins,” Mkhwanazi added. “There is no doubt that this has contributed to an improved business mood.”
Looking ahead, respondents expect activity to continue on this upward trajectory in the first quarter. However, the order backlog improved only slightly, suggesting that the recovery remains narrow. Despite President Cyril Ramaphosa’s pledge to turn South Africa into a construction site through R1 trillion in infrastructure development over the medium term, much of the work continues to come from the energy and mining sectors, reflecting limited progress in other areas of infrastructure investment.
“The civil engineering and construction survey is the best informal measure for assessing infrastructure investment. In that regard, the survey results are very positive,” Mkhwanazi said. “However, the spread of activity appears to be concentrated in renewable energy generation and extraction, which is not bad or even surprising, but suggests that important reforms in other areas of the economy are still missing.”
The construction industry is also the largest contributor to job creation in the country. The sector added 130,000 new jobs in the third quarter, according to Stats SA.
“Infrastructure is the backbone of development because it increases economic competitiveness and sustainability,” Prime Minister Ramaphosa said at the Nation Building Summit in November. “Without infrastructure, economic growth slows, inequality deepens and quality of life declines.”
The index, compiled by FNB and Stellenbosch University’s Bureau of Economic Research (BER), measures civil contractor sentiment on a scale of 0 to 100, with 50 representing a neutral value. The latest survey was conducted from November 10th to 24th. – Business Day
