Macpherson hails 2025 National Building Summit as historic milestone in revitalizing South Africa’s construction sector

49

Minister for Public Works and Infrastructure Dean McPherson described the 2025 National Building Summit as a landmark event that strengthens the Government’s determination to revive the country’s construction industry. The summit, hosted by the Construction Industry Development Board (cidb) in partnership with the Department of Public Works and Infrastructure (DPWI), concluded in Boksburg with key commitments for regulatory change, better project execution and increased accountability.

The theme, “Delivering Infrastructure: Improving Construction Industry Performance,” brought together leaders from government, business, labor and civil society to tackle challenges and drive progress. Mr Macpherson highlighted the sector’s role in job creation, noting that it accounted for more than half of new jobs in the third quarter, and announced measures to combat disorder and corruption.

Summit provides a platform for public-private collaboration

The two-day event provided an important forum for stakeholders to assess progress, pinpoint reforms, and accelerate infrastructure deployment. Mr McPherson stressed that the Government was focused on delivering projects “faster, smarter and more affordable”, guided by new tools such as the Construction Action Plan and improved social facilitation framework. This approach is intended to reduce delays and ensure a smoother implementation overall.

He welcomed new labor figures showing the construction sector created 130,000 new jobs in the third quarter, accounting for more than 50% of new jobs in the economy. “Since we committed at our first summit in Durban last year to address construction site stoppages to reinvigorate the industry, we are starting to see green shoots of growth starting to take root,” Mr McPherson said. This growth reflects the sector’s potential to foster economic expansion and reduce unemployment, which remains a pressing issue in South Africa.

The summit also spotlighted innovations such as the University of Johannesburg’s pioneering 3D house printing project, celebrating its role in addressing housing needs through cutting-edge technology.

Progress in the fight against construction mafia and extortion

A major highlight was an update on efforts to curb site disturbance and extortion often associated with the so-called construction mafia. Mr Macpherson reported that since last year’s Durban Declaration, more than 770 cases of extortion and intimidation had been recorded, with 241 arrests and 176 convictions. In KwaZulu-Natal, incidents have plummeted from more than 60 incidents per month to less than 10, thanks to joint action by law enforcement, businesses and public organizations.

CIDB chairman Kurile Nzo has revealed that 40 contractors have been deregistered for colluding with some CIDB staff to secure inflated valuations. “There are too many unfinished projects. Unfortunately, contractors are colluding with cidb individuals to receive assessments that do not reflect their true capabilities. We need to be tough,” Nzo said. The crackdown is aimed at eradicating fraud and ensuring that only competent companies handle public works projects.

Deputy Minister Zikalala outlines reforms to achieve stronger results

On the final day of the summit, Deputy Minister Sihle Zikalala reaffirmed the government’s commitment to overhauling the sector, eliminating corruption and ensuring prompt payment to contractors. He outlined several initiatives to strengthen infrastructure development, including the restructuring of the Budget for Infrastructure (BFI) to operate four tenders per year, the issuance of a R15-billion infrastructure bond for affordable financing, and the establishment of an Infrastructure Finance and Implementation Support Authority until March 2026.

Zikalala also introduced guidelines on unsolicited bidding to speed up the start of projects. “These measures reflect the government’s commitment to strengthening performance, accountability and inclusive growth in South Africa’s construction sector,” he said.

DPWI Director-General Sifiso Mdakane stressed the need for a high-performing industry where projects are completed on time, on budget and safely. He proposed creating an independent Inspector General of Engineers to oversee engineering and infrastructure to address challenges such as urbanization and climate change.

Adoption of the 2025 Leaders’ Declaration

The summit culminated in the adoption of the 2025 Nation Building Summit Declaration by Minister McPherson and local MECs. The agreement outlines reforms over the next 12 months, including blacklisting of underperformers, faster approvals, digital tracking, professionalization and community connections. It builds on last year’s fully implemented declaration and sets out a framework for ethics, transparency and performance.

Key areas include zero tolerance for corruption, increasing procurement transparency, contractor development, regulatory compliance, accelerating delivery times, transforming, innovating and building a resilient industry. “This initiative represents the next stage of infrastructure development,” DPWI noted.

🔴Central News Weekly Edition | Issue 119 Download the latest print and e-editions | Jacob Zuma welcomes Tony Yengeni to MK party as second vice president in major leadership shake-up 🔴

Download it here: