**Johannesburg**: At AfriSam’s Annual Budget Breakdown event, optimism returned to South Africa’s economy as Dr Azar Jammine highlighted increased business confidence, driven by improved conditions and governmental collaboration, despite ongoing challenges faced within the construction sector.
At AfriSam’s Annual Budget Breakdown event held in Johannesburg in February 2025, a note of optimism emerged regarding South Africa’s economic outlook, despite persistent challenges in the construction sector. Dr Azar Jammine, Director and Chief Economist at Econometrix, highlighted a resurgence in business confidence as a notable theme of his address.
AfriSam, a prominent supplier of construction materials, has established itself as a key player in the ongoing developments within the construction industry, underlining its commitment to supporting infrastructure and economic growth. Speaking at the event, Dr Jammine remarked that recent indicators from the Bureau for Economic Research’s Business Confidence Index and Absa’s Purchasing Managers’ Index demonstrate a significant increase in positive sentiment among businesses.
“The latest data shows increased optimism with businesses expecting better conditions ahead,” he stated. He attributed this improvement to factors such as a reduction in load shedding and a government increasingly open to collaborations with the private sector.
Dr Jammine also praised recent leadership changes at Eskom, the national power utility, which have prioritised expertise and competence. He discussed the formation of the Government of National Unity (GNU) as a vital contributor toward enhancing oversight and combating corruption, facilitating stronger cooperation between governmental bodies and businesses which is crucial for revitalising economic growth.
Despite these encouraging insights, Dr Jammine acknowledged the ongoing structural challenges facing the construction sector. Inefficiencies in logistics and a continued decline in investment are significant barriers to economic expansion. He pointed out that gross fixed capital formation, a crucial driver of demand for construction materials like cement, remains significantly lower than international benchmarks, which adversely affects infrastructure projects and commercial developments.
In response to these challenges, AfriSam has reaffirmed its dedication to supporting the construction industry. AfriSam’s Executive Chairman Eric Diack expressed confidence in the company’s strategy to withstand market fluctuations while maintaining its operational capacity and expertise.
“We understand that maintaining a strong foundation of skills, experience and technical proficiency is critical to ensuring long term sustainability,” Diack noted. He emphasised the company’s commitment to investing in its workforce and infrastructure to ensure resilience and readiness to assist in the sector’s recovery as market conditions improve.
Diack further elaborated on AfriSam’s proactive approach in driving industry-wide progress, stating, “We recognise the importance of collaboration in revitalising the sector and we continue to engage with stakeholders across the value chain to find solutions that benefit everyone.”
Political and economic analyst Frans Cronje shared the stage with Dr Jammine, reinforcing themes of resilience and the importance of collaboration among sectors. Cronje underscored the strong public support for pragmatic governance, noting that the GNU resonates with the economic aspirations of a diverse South African demographic.
“The majority of South Africans want policies that foster stability, growth and job creation,” he remarked, suggesting a positive long-term outlook for the nation.
The Annual Budget Breakdown event serves as a significant platform for industry insights, and through it, AfriSam continues to solidify its position as a leader within South Africa’s construction sector. With a renewed sense of optimism in the economic atmosphere and a commitment to sustainable practices, AfriSam is poised to support the development of critical infrastructure, shaping South Africa’s economic landscape for the future.
Source: Noah Wire Services
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