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South Africa Infrastructure Report Q2 2016

South Africa Infrastructure Report Q2 2016

BMI View: South Africa's construction sector has entered into a tepid period of growth as business sentiment has been heavily eroded, which we expect will lead to significant cuts to capital expenditure over 2016 and 2017. While South Africa will remain a choice investment desitination in SSA, the 2016 budget did little to alleviate concerns over a ratings downgrade, which will further drag on growth. Rail and renewable energy infrastructure projects remain our favoured sectors, along with low-cost housing.

Latest Updates And Structural Trends

Business sentiment is set to drag on growth heavily over 2016 and 2017. We now forecast just 1.6% real growth in the construction sector in 2016 as the economy slows on the back of reduced capital expenditure and a tighter consumer outlook.

We have taken our non-residential building forecasts into negative y-o-y real growth territory, as macroeconomic headwinds continue to drag; currency depreciation, sluggish economic growth, interest rate increases and mining sector divestments have been factored into our outlook.

Water infrastructure has seen its outlook improved, owing to the 2016 budget announcement, although we continue to see rail and IPP projects (renewables and thermal) driving our infrastructure forecasts, which average 3.4% over the next ten years.


BMI Industry View
Table: Infrastructure - Construction Industry Forecasts (South Africa 2016-2022)
Table: Infrastructure Risk Reward Index (South Africa)
SWOT
Industry Forecast
Construction And Infrastructure Forecast Scenario
Table: Construction And Infrastructure Industry Data (South Africa 2015-2025)
Transport Infrastructure – Outlook And Overview
Table: Transport Infrastructure Industry Data (South Africa 2015-2025)
Transport Infrastructure Outlook
Major Projects Table - Transport
Table: MAJOR PROJECTS: Transport
Energy And Utilities Infrastructure – Outlook And Overview
Table: Energy And Utilities Infrastructure Data (South Africa 2015-2025)
Energy And Utilities Infrastructure Outlook And Overview
Table: REIPPP Capacity Target, 2016
Major Projects - Energy & Utilities
Table: MAJOR PROJECTS: Energy and Utilities
Residential/Non-Residential Building – Outlook And Overview
Table: Residential And Non-Residential Building Industry Data (South Africa 2016-2025)
Residential/Non-Residential Building - Outlook & Overview
Table: Planned Special Economic Zones
Major Projects Table - Residential/Non-Residential Building And Social Infrastructure
Table: MAJOR PROJECTS: Residential and Non-Residential Building
Industry Risk Reward Ratings
South Africa – Risk/Reward Index
Sub-Saharan Africa Risk/Reward Index - Stabilisation, But Tough Year In 2016
Table: Sub-Saharan Africa - Infrastructure Risk/Reward Index, Q216
Market Overview
Competitive Landscape
Table: EQS Data
Company Profile
Eskom
Transnet
Murray & Roberts Group (M&R)
Methodology
Industry Forecast Methodology
Sector-Specific Methodology
Risk/Reward Index Methodology
Sector-Specific Methodology
Table: Infrastructure Risk/Reward Index Indicators
Table: Weighting Of Indicators

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