Protectionist Policies Create Local South African Growth
South Africans in the cement industry can expect immense growth in 2022 as the local market thrives. Following the ban that the government implemented on imported cement on 4 November 2021, local cement companies can expect to increase their sales as competition reduces from neighbouring cement industries like those in Vietnam, China and Pakistan. With tariff protection being upheld by the South African government and supported by lobbyists like the Trade Body on Cement and Concrete South Africa, local cement producers have already seen a rise in share prices and sales.
Regulations against imported materials will protect the construction sector in South Africa and help boost the overall national economy. In 2021 the South African government announced a spending programme accommodating a huge array of more than 50 state-funded infrastructure and development projects being executed this year. In combination with lower competition rates from international cement manufacturers and suppliers, local cement manufacturers and retailers for related instruments (like a concrete mixer) will likely see growth in their sales. Cement manufacturing companies such as the ones listed below have already grown manifold following the ban on cheap imports.
Popular Cement and Construction Material Manufacturers
- Sephaku cement
- Lafarge industries (SA) (PTY) Ltd
- MTSA (PTY) Ltd
- Emerald Sky Cement (PTY) Ltd
- NJR Steel Thabazimbi
- Expoxerite Products Cc
- Botrivier Cement Works
- Swartland Cement
- Metallurg South Africa (PTY) Ltd
National Infrastructure Plans Create A Promising Future for Local Construction Companies and Manufacturers
South African cement manufacturer and supplier PPC experienced a 20% year-on-year growth in the first half of 2021, and new regulations that protect them against cement dumping will likely boost these numbers. PPC reported that the volume of the cement they sold increased between 12 to 15% in South Africa. Strong retail demand has arisen as a result of multiple government-funded infrastructure plans.
The South African government has set out a variety of goals that are intended to be implemented by 2050. Following the draft of the National Infrastructure Plan (NIP) for 2050, regional plans have been postulated for the infrastructural development of the nation and surrounding areas. Infrastructure is a critical condition for South African and regional economic and social development.
A lot of care has also been put into infrastructure development projects focused on the energy, transport, telecommunications and water sectors. These are intensive construction projects that require a huge array of civil engineers, project managers, regional coordinators, politicians, policy-makers and construction workers. These plans are also expected to generate robust economic growth, as they will create a huge amount of jobs that empower local developers and labourers. Infrastructure or its lack thereof has a huge impact on service delivery and national wellbeing requires facilities such as those listed below.
Important Infrastructure for Service Delivery and Wellbeing
- Office blocks
- Apartment buildings
- Shopping centres
- Energy plants
- Telephone poles
- Retirement homes
- Tertiary education centres
- Public works such as bathrooms and recreational facilities
- Sewage and wastewater treatment
- Diversified energy generators
- Public transport systems/ mass transit systems
Without this basic infrastructure, it is unlikely that people will have their basic needs met. When essential infrastructure fails to provide for the citizenry, the general population will suffer from pervasive crises and endemics such as food scarcity, unemployment, impoverishment and homelessness. Evidently, these issues are seen all over South Africa.
Thus, assigning budgetary plans and offering tenders and potential employment opportunities to underdeveloped and under-served communities will be a strategic way to generate local growth. Simultaneously, the National Infrastructure Plans will generate foreign investment and stimulate the broader economy, thereby encouraging economic diversification and the expansion of previously sluggish markets. Reducing dependence on foreign imports will also be a massive bonus for local entrepreneurs who find themselves stifled by competitive mass market trading from neighbouring countries with massive industrial power to leverage against the supply and demand chain.
What’s more, plans are in motion to reform the procurement process so that accountability and transparency are prioritised throughout the construction process. To address shortfalls in the administrative capacities of the South African governments, the National Infrastructure Plan aims to elicit public-private partnerships where frameworks are curated to fully support the collaborative initiative between the state and private sector. The NIP outlines that collaboration is important –which is why South Africa is also strategising for the development of the Inga III Hydropower project in collaboration with the Democratic Republic of Congo, and the Lesotho Highlands Water Project Phase II (Highlands).
Economic Recovery Fuelled by Construction and Infrastructural Development
In 2021 president Cyril Ramaphosa announced that as part of the Economic Reconstruction and Recovery Plan, there would be a massive rollout of infrastructure plans which were imposed in order to stimulate employment and local production. An infrastructure investment project worth 340 billion was announced, and it was intended to be assigned towards development in the energy, water, telecommunications and transport sectors. Similarly, other plans were created for human settlement projects. Many of these grand construction plans are currently underway.
This creates an exciting potential for those within the construction and cement industries in 2022. After the pandemic, the cement industry is finally seeing signs of growth and recovery after the second quarter of 2021. 2021 was a terrible year for those in construction, as building sites were put to a halt. This is incredible news for the 8% of the South African population who are employed within the industry.
The protectionist stance taken by the South African government should do well to protect the cement sector in 2022. The sector is currently valued at around R44.12 billion. Increased public works expenditure channelled into construction projects like the ones listed below will create a welcome influx of money and employment.
The Minister of public works has liaised with public and private officials to commence the construction of the following infrastructural projects. These strategic infrastructure projects accommodate the outlined rules and regulations around the planning and procurement act according to the Infrastructure Development Act. These projects have been framed as having a key role to play in uplifting almost half of the population from unemployment after the severe economic recession caused by the Covid-19 pandemic and harsh civil and commercial restrictions.
- The Greenbay project in Gordon’s Bay
- The Cornubia Development in Durban Kwa-Zulu Natal
- The Keystone Development roadworks infrastructure upgrade plan
- Lanseria Smart City
- The N3 KwaXimba / Ashburn interchange In Kwa-Zulu Natal’s Murray Road
- Cato Ridge electricity plant development worth R700m in Durban
- Limpopo Science and Technology Park in Polokwane
- The Point Waterfront
- Space Infrastructure Project
- Scheepersvlakte Citrus Farm near Kirkwood
- An aviation park at the Upington Airport
- The Northern Cape’s Redstone concentrated solar thermal power project in the Northern Cape
- Port Elizabeth Waterfront Project
- The Marine Tilapia Industry project in the Eastern Cape
- Mokolo Crocodile Water Augmentation Project
- N1 Windburg Interchange to Windburg Station: Free State;
- N1 Musina Ring Road: Limpopo;
- N1 Polokwane Eastern Ring Rd Phase 2: Limpopo;
- N1 Ventersburg to Kroonstad: Free State (two projects in one);
- N2 Mtunzini Toll Plaza to Empangeni T-Junction: KwaZulu Natal;
- N3 Cato Ridge to Dardanelles: KwaZulu Natal;
- N3 Dardenelles to Lynnfield Park: KwaZulu Natal;
- N3 Paradise Valley to Mariannhill Toll Plaza: KwaZulu Natal;
- N2 Edwin Swales to South of EB Cloete Interchange: KwaZulu Natal;
- N3 Ashburton Interchange to Murray Road: KwaZulu Natal;
- N3 Mariannhill Toll Plaza to Key Ridge: KwaZulu Natal;
- N2 EB Cloete Interchange: KwaZulu Natal;
- Small Harbours Development: National;
- N3 New alignment via De Beers Pass: Free State;
- Boegoebaai Port and Rail Infrastructure Project: Northern Cape.
- Emergency/Risk Mitigation Power Purchase Procurement Programme (2000MW);
- Small IPP Power Purchase Procurement Programme (100MW): National;
- Embedded Generation Investment Programme (EGIP)-400MW: National
- Vaal River System including Phase 2 of the Lesotho Highlands Water Project: Gauteng;
- Phase 2A of the Mokolo Crocodile River (West) Augmentation Project: Limpopo;
- uMkhomazi Water Project: KwaZulu Natal;
- Olifants River Water Resource Development Project – Phase 2: Limpopo;
- Vaal-Gamagara: Northern Cape;
- Mzimvubu Water Project: Eastern Cape;
- Rehabilitation of the Vaalharts-Taung Irrigation Scheme: Northern Cape & North West;
- Groot Letaba River Water Development Project – Nwamitwa Dam: Limpopo;
- Berg River Voëlvlei Augmentation Scheme: Western Cape;
- Rustfontein Water Treatment Works: Free State;
- Orange-Riet Canal Increase of Bulk Raw Water Supply: Free State.
- Greater Cornubia: KwaZulu-Natal;
- Vista Park II & III: Free State;
- Lufhereng: Gauteng;
- Malibongwe Ridge: Gauteng;
- N2 Nodal Development: Eastern Cape;
- Matlosana N12 West: North West;
- Green Creek: Gauteng;
- Mooikloof Mega Residential City: Gauteng;
- Fochville Extension 11: Gauteng;
- Germiston Ext 4 Social Housing Project: Gauteng;
- Newcastle Hospital Street Social Housing Project: KwaZulu Natal;
- Hull Street Social Housing Project Phase 1: Northern Cape;
- Kwandokuhle Social Housing Project: Mpumalanga;
- Phola Heights – Tembisa Social Housing Project: Gauteng;
- Sondela Phase 2: Gauteng;
- Willow Creek Estate: Mpumalanga;
- Joe’s Place Social Housing: Gauteng;
- Jeppestown Social Housing Project (Unity House): Gauteng.
Buying A Concrete mixer Is An Important Investment For Construction Companies and Labourers
Evidently, the use of concrete mixers is going to be more and more important in the coming months of 2022. Construction businesses in both the public and private sectors will have to consider where to obtain a high-quality concrete mixer for large infrastructural development projects. Whether it be for the construction of human settlements, energy plants, water systems or transport systems, the concrete mixer will be an essential part of the toolkit that will actualise the grand development plans for 2022.
Buying a concrete mixer from BS Power is a simple process that only requires a basic understanding of the machinery. However, when in doubt, BS Power’s blog offers plenty of information pertaining to the functionality and the instructions on the useful tool. With affordable rates and an easily navigable website, buying your concrete mixer will be as easy as logging onto your computer and clicking ‘add to cart’. BS Power is a trusted supplier and retailer for a variety of construction-related products.
From a concrete mixer to, generators, rammers, plate compactors, brush cutters, chainsaws, blowers, misters, engines, concrete cutters, scaffoldings, high-pressure washers and water pumps, BS Power has anything and everything that you might need during the construction process. A concrete mixer is an invaluable tool that easily mixes aggregates to create large volumes of cement. By using this advanced machinery, you can guarantee that your cement will uphold the highest standards with regard to consistency.
The BS Power concrete mixer minimises lumps, as well as the physical strain on labourers’ bodies. Manually mixing concrete can be a tiring and tedious job, so using a concrete mixer is the more productive and effective way to lead construction projects. Buying the right construction tools is a foresighted and wise investment.
This asset will allow project managers to rest easy as they see construction workers and labourers working profitably with high-tech machinery. Using a concrete mixer removes strain on your construction team, thereby allowing them to work more efficiently. Stay ahead of the 2022 trends in cement, construction and infrastructural development sectors by investing in the right tools. Buy a BS Power concrete mixer so that you can be equipped for market growth in the cement sector this year and onwards.