Seven indicators record positive growth
Johannesburg, 19 March 2026 – The findings of the Afrimat Construction Index (ACI) for the fourth quarter of 2025 have been released, showing a marginal year-on-year increase. This composite index of activity levels in the building and construction sectors is compiled every quarter by economist Dr Roelof Botha on behalf of Afrimat. The index value is expressed in real terms, i.e., after adjustment for the effect of inflation.
The ACI was boosted by a solid 5.4% increase in the volume of building materials produced and a 2.2% real increase in the sales value of building materials. Although the activity levels in South Africa’s construction sector remain subdued, the ACI’s seasonally adjusted reading has increased for the second consecutive quarter – the first time this has occurred since the brief recession of 2020.
According to Dr Botha, arguably the most impressive aspect of the latest ACI is the positive growth trend for the indicators that carry the largest weighting, namely the sales values and volume of production of building materials. “Five of the 10 indicators recorded positive year-on-year growth rates, whilst seven of them recorded positive quarter-on-quarter growth during the fourth quarter of 2025.”
He adds that the rate-cutting cycle of the monetary policy authorities had played a crucial role in lowering the cost of capital formation, which invariably involves construction works and building activity. “Hopefully, the current hostilities in the Middle East will not derail the shift to a more accommodating monetary policy stance, as further interest rate declines are necessary to lift the ACI from its current stable level to an expansionary trajectory.”
The following table shows the quarter-on-quarter and year-on-year percentage changes for the 10 constituent indicators included in the ACI.
Botha believes it is encouraging that the value of construction works managed a quarter-on-quarter increase of 6.1% during the fourth quarter of last year, which is often a subdued quarter due to the traditional winding-down of building activity in mid-December.
He also notes the exceptionally strong performance of private sector capital formation in buildings and construction works since interest rates were lowered from a 15-year high towards the end of 2024. “After a period of lethargy caused by the deterioration of the country’s infrastructure and high interest rates, the private sector has started to invest substantially in capital formation, with an increase in the average quarterly value of these investments of 24% since the fourth quarter of 2024.”
According to Botha, public-private partnerships with infrastructure repair and expansion hold the promise of expanding economic activity within sectors that are labour-intensive and that affect ordinary citizens at the heart of their daily existence.
Looking ahead, he is hopeful that the R141 billion that the National Treasury has set aside for water resources and road infrastructure in the current fiscal year will result in the speedy implementation of new projects.
Andries van Heerden, the CEO of Afrimat, says that the Group’s deliberate diversification strategy has once again proven successful. The Group’s Construction Materials segment, particularly aggregates, is delivering strong results. This aligns with the findings of this ACI.
“Our strategic national footprint has ensured that we are well-positioned to supply products to Transnet as it maintains the rail corridors. Afrimat continues to supply products and aggregates for national, provincial, and rural road construction, as well as for public-sector maintenance and private-sector building projects.”
He adds that the world is currently in a precarious situation, and the fluctuations in oil prices and supply will have far-reaching effects. “It remains my hope that the Government will focus not only on critical infrastructure maintenance but also on ensuring that the country has resilient infrastructure capable of supporting economic growth, job opportunities, and the well-being of South Africans. We are a tenacious nation, with large and small entrepreneurs prepared to engage in public-private partnerships that, in my opinion, can push the country forward in a meaningful way.”
-Ends-
Issued for: Afrimat Limited
- Contact: Andries van Heerden, Chief Executive Officer (CEO)
- Tel: 021-917-8853
- Email: andries@afrimat.co.za
- Website: www.afrimat.co.za
- Issued by: Keyter Rech Investor Solutions
- Contact: Vanessa Rech
- Tel: 083-307-5600
- Email: vrech@kris.co.za
