Despite ongoing challenges in the construction sector, South Africa’s economic outlook is showing encouraging signs of improvement. This was one of the key messages at AfriSam’s Annual Budget Breakdown event held in Johannesburg in February 2025, where Dr. Azar Jammine, Econometrix Director and Chief Economist, highlighted a renewed sense of business confidence.
As a leading supplier of construction materials, AfriSam has long been at the forefront of industry developments, supporting infrastructure growth and economic progress. Speaking at the event, Dr Jammine noted that indicators such as the Bureau for Economic Research’s Business Confidence Index and Absa’s Purchasing Managers’ Index reflected a marked improvement in sentiment over the past six months.
“The latest data shows increased optimism with businesses expecting better conditions ahead,” he said. “Key factors include reduced load shedding and a government more open to private sector collaboration.”
Dr Azar Jammine, Econometrix Director and Chief Economist, shared his insights at AfriSam’s Annual Budget Breakdown event in February 2025.
Dr Jammine attributed part of this shift to Eskom’s recent leadership changes which have prioritised skills and expertise as well as the formation of the Government of National Unity (GNU) which is fostering greater oversight and reducing corruption. He also pointed to stronger cooperation between government and business as an essential step in revitalising economic growth. However, significant challenges remain particularly in the construction sector. Structural constraints, such as inefficiencies in logistics and the continued decline in investment, continue to weigh on economic growth. Gross fixed capital formation – a key driver of demand for cement and other construction materials – remains well below international benchmarks. This has had a direct impact on infrastructure projects and commercial developments. Despite these concerns, AfriSam remains committed to supporting the industry. AfriSam Executive Chairman Eric Diack said that AfriSam has strategically positioned itself to weather industry fluctuations while safeguarding its expertise and operational capacity. “We understand that maintaining a strong foundation of skills, experience and technical proficiency is critical to ensuring long term sustainability,” he said. “By continuing to invest in our people, processes and infrastructure, AfriSam has remained resilient, ready to support the industry’s growth as market conditions improve.”
This steadfast approach has allowed AfriSam to reinforce its role as a trusted partner in the construction sector, ensuring customers continue to receive high quality materials and reliable service. Diack added that AfriSam’s commitment extends beyond its own operational stability, as the company also plays a proactive role in driving industry-wide progress.
“We recognise the importance of collaboration in revitalising the sector and we continue to engage with stakeholders across the value chain to find solutions that benefit everyone,” he said.
Frans Cronje, political and economic analyst and strategist addressed the AfriSam Budget Breakdown event, reinforcing the theme of resilience and collaboration.
Political and economic analyst and strategist Frans Cronje also addressed the event, reinforcing the theme of resilience and collaboration. He highlighted strong public support for pragmatic governance, noting that the GNU aligns with the economic aspirations of South Africans across demographics. “The majority of South Africans want policies that foster stability, growth and job creation,” said Cronje. “This reflects a positive long term trajectory for the country.” AfriSam’s Annual Budget Breakdown remains a key platform for industry insights reinforcing the company’s role as a leader in South Africa’s construction sector. With renewed optimism in the economic environment and a commitment to sustainable growth, AfriSam continues to support the development of vital infrastructure, helping to shape the country’s future.
Richard Tomes, AfriSam Sales and Marketing Executive, speaking at the company’s Annual Budget Breakdown event in February 2025.
