- Civil confidence in South Africa climbs to strongest level since 2016 on the back of improved construction activity.
- Renewable energy and mining projects underpin higher profitability across the sector.
- Outlook remains cautiously positive despite only modest improvement in order books.
Civil contractor sentiment strengthened sharply in the fourth quarter of 2025, with the FNB BER Civil Confidence Index rising to its highest level in more than a decade. The index increased by nine points to 52, indicating that a majority of firms were satisfied with prevailing business conditions.
The improvement follows a smaller increase in the previous quarter and marks the joint strongest reading since 2016. According to FNB, the rise in confidence reflects a clear recovery in construction activity and a notable improvement in profitability across the civil engineering sector.
Data from Statistics South Africa shows that the real value of construction works declined by 3 percent compared with a year earlier in the third quarter of 2025. However, survey results suggest that the contraction eased significantly in the final quarter, supported by increased work on renewable energy and mining related projects.
Siphamandla Mkhwanazi, senior economist at FNB, said the shift in activity has had a direct impact on business sentiment. He noted that while overall construction volumes remain below previous peaks, contractors are benefiting from better quality work and improved pricing conditions.
Profitability also showed a strong recovery, with the survey index tracking overall profit growth reaching its highest level since late 2007. Although margins are not at the levels seen during the infrastructure boom ahead of the 2010 World Cup, firms are clearly experiencing healthier returns, which has helped lift confidence.
Looking ahead to the first quarter of 2026, respondents expect activity levels to continue improving. However, order books remain only slightly better than in the previous quarter, suggesting that the near term outlook is positive but not yet broad based.
Mkhwanazi said the civil construction survey remains one of the most reliable indicators of infrastructure investment trends. While the results are encouraging, he cautioned that activity is still concentrated in renewable energy generation and mining. This reflects strong momentum in these sectors, but also points to slower progress in broader economic and infrastructure reforms.
Overall, the latest survey signals a potential rebound in South Africa’s civil construction sector, with clean energy projects playing an increasingly important role in supporting growth and confidence.
Author: Bryan Groenendaal
