South Africa’s Construction sector signals recovery as Afrimat Index rises 5% in Q2 2026

South Africa’s construction sector delivered a welcome economic bright spot in the second quarter of 2026, with the latest Afrimat Construction Index (ACI) recording a 5% quarter-on-quarter increase. The surge significantly outpaced national economic growth for the same period.

Compiled quarterly by economist Dr Roelof Botha on behalf of Afrimat, the inflation-adjusted index reflects momentum across four key indicators 

A critical job creator amid macro pressures

While year-on-year growth for the index remained modest at 0.7%, the sector demonstrated resilience where it mattered most: job creation.

Against the backdrop of broader nationwide job losses in Q2 2026, the construction industry added 95,000 new jobscompared to the same period in 2025.

“Against the background of the year-on-year decline in South Africa’s total employment during the second quarter, the ability of the sector to have created 95 000 new jobs is exceptionally good news,” noted Dr Botha.

Production data highlighted the momentum, with building material production volumes surging 8.5% quarter-on-quarter, while real sales values improved by 7%. The ACI’s seasonally adjusted reading has now maintained a level above its 2011 benchmark of 100 for four consecutive quarters.

R396 Billion pipeline points to sustained demand

Looking ahead, industry metrics point to expanding project order books across the country. According to findings from Industry Insights, the newly released 2026 Construction Book lists 110 major listed projects valued at approximately R396 billion—representing a 71% jump from R232 billion in 2025.

Key demand drivers spanned several sub-sectors:

• Infrastructure Upgrades: Ongoing national rail maintenance and provincial road networks.
• Water & Energy Infrastructure: Municipal water developments alongside the nationwide rollout of renewable energy projects.
• Commercial & Residential: Steady execution across private residential and commercial property build-outs.

Broad-Based growth strategy

Afrimat CEO Andries van Heerden highlighted that the group’s performance benefits from diverse project exposure across its national quarry network rather than relying on isolated megaprojects.

“As a national aggregates supplier, we are uniquely positioned to participate in a broad range of projects across the country,” said Van Heerden. “Our exposure to numerous small and medium-sized contracts continues to support activity across our footprint.”

While overall sector activity remains below historical highs, the Q2 2026 performance signals an encouraging structural recovery from pandemic-era low points, establishing a solid foundation for South Africa’s broader infrastructure drive.