The Afrimat Construction Index (ACI) for the first quarter of 2024 indicates a marginal decline, dropping to 1037 from 1173 in the previous quarter. The report states this decline is attributed to high interest rates, dysfunctional municipalities, fiscal constraints, and seasonal slowdowns in construction activity.
The report does however state that despite these challenges, there are prospects for improvement if the South African Reserve Bank reduces interest rates and political stability is maintained post-elections. Joining CNBC Africa to unpack this further is Dr Roelof Botha, Economic adviser, Optimum Investment Group.