LUCIA MUTIKANI, Johannesburg | Tuesday 11.40am
BUREAUCRACY and lack of skilled personnel in provincial government departments could scupper the South African construction industry’s chances of recovery in 2000.
South African Federation of Civil Engineers (Safcec) Executive Director Henk Langenhoven said that although the relevant indicators are positive, an erosion in the contractual environment has prevented the industry from taking off. ”In the past it took about three months before budgets started flowing into projects. It now takes up to eight months,” said Langenhoven.
Indicators favourable for the civil engineering industry’s recovery include expectations of economic growth of between three and 3.5 percent this year versus 1,2% in 1999, and faster adjustment of local companies to globalisation. However, Langenhoven said that overstaffing in provincial government departments poses a threat to the industry’s recovery.
”All provinces have been able to dig themselves out of their deficit holes, and repaid their debt. If overstaffing could be addressed, even more space exists for investment getting higher priority,” he said.
Turnover in the civil engineering industry – which slipped into recession in late 1998, hit by punitively high interest rates – is expected to contract by five percent in rand terms in 2000 versus 16% contraction in 1999. Better fortunes are forecast in 2001, with 5% growth in rand terms, rising to 5% in 2002. — Reuters