The Afrimat Construction Index (ACI) for the fourth quarter of 2025 reveals a marginal YoY increase, signalling a hard-won stability in the building and construction sectors of South Africa. Compiled by economist Dr Roelof Botha, the real-term index climbed for the second consecutive quarter, marking the first such occurrence since the 2020 recession.
The index was primarily bolstered by a 5.4 per cent rise in building material production and a 2.2 per cent increase in sales value. Dr Botha highlighted that five of the ten key indicators showed YoY growth, while seven improved on a quarterly basis. Notably, the value of construction works jumped 6.1 per cent QoQ a significant feat given the traditional industry slowdown in December.
A pivotal driver of this recovery has been the monetary policy shift. As interest rates retreated from 15-year highs, private sector capital formation surged, with average quarterly investments rising 24 per cent since late 2024. Dr Botha noted that lower capital costs are essential to moving the sector from its current stable level to a truly expansionary trajectory, provided global geopolitical tensions do not disrupt the rate-cutting cycle.
Afrimat CEO Andries van Heerden credited the Group’s diversification for its strong performance, particularly in aggregates. He emphasised the importance of public-private partnerships and the government’s ZAR141bn (US$8.31bn) commitment to water and road infrastructure. As Afrimat continues to support Transnet’s rail corridors and national road projects, the industry looks toward resilient infrastructure as the primary engine for job creation and economic growth.
