Gauteng and Limpopo outperform SA’s national civil tender values during October 2024

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20-11-2024
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Property Wheel
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SA’s civil tender landscape has shown mixed signals during 2024. While tender values have steadily increased over the past few months from R5.3 billion in July to an estimated R7.6 billion in October, they remain well below 2023 levels according to Industry Insight.

October 2024 saw a notable 8% monthly increase however, values were still down 21.5% year-over-year, marking the fifth consecutive month of double-digit declines at a national level since the May 2024 elections.

Despite these challenges, Gauteng and Limpopo outperformed the national trajectory during October with Gauteng’s tender values rising to R1.3 billion (up 59% year-over-year) and Limpopo up 86% to exceed R1 billion. Conversely, provinces including the Western Cape, Eastern Cape, and KwaZulu-Natal experienced declines with values down by 6%, 30%, and 40% respectively.

During the first ten months of 2024, the national decline in tender values accelerated to -13% year-over-year (or an 18% decrease in real terms) to R77 billion, down from R89 billion during the same period in 2023 – a reduction of R11 billion.

KwaZulu-Natal led with projects worth an estimated R19 billion out to tender, representing a 3% increase followed by the Western Cape at R10.5 billion, although this represents a 23% year-over-year decline. Limpopo and Mpumalanga were the only other provinces where tender values increased over this period, up 12% and 70% respectively and accounting for an estimated 17% of the total national value.

While the value of awarded projects weakened nationally—falling by 15% year-over-year to R54 billion (a 20% decline in real terms)—certain provinces exhibited resilience. The Free State recorded the strongest performance, with the value of awarded projects more than doubling to R5.2 billion. Gauteng and the North West also indicate potential for increased investment, based on awarded projects, assuming construction work has commenced or will begin soon.