ROAD TO HELL
The road to South Africa’s construction industry hell has been paved with the proverbial good intentions. Prior to the global financial crisis, there was much optimism about the role infrastructure could play in raising growth and spurring development. In the immediate aftermath, infrastructure spending was viewed as a key countercyclical stimulus measure. What transpired, however, was quite the opposite. The infrastructure promise was sacrificed on the altars of inefficiency, corruption, collusion and expediency. Those firms that have survived are either far smaller, or are now focusing their energies on niche private-sector-driven markets or on opportunities abroad.
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