% Change in the constituent indicators of the Afrimat Construction Index (quarter-on-quarter and year-on-year) - third quarter 2025 Indicator % q-o-q % y-o-y Retail Trade Sales – Hardware 7,7 7,7 Building Materials Produced (Volume) 13,6 5,4 Building Plans Passed (Value) 13,7 1,9 Building Materials (Sales) 11,9 1,6 Salaries & Wages – Construction 1,8 0,7 Employment In Construction 10,4 0,7 Construction Works (Value) -1,8 -3 Construction Value Added 0 -4.,5 Wholesale Trade Sales – Construction Materials 10,4 -5,2 Buildings Completed (Value) 14,4 -5,3 Afrimat Construction Index 10,2 0,4 GDP 0,9 2,1 Note: Ranked by year-on-year % change
Construction sector activity
Although the modest relaxation of monetary policy is to be welcomed, more interest rate cuts are required to bring the cost of capital in South Africa in line with our key trading partners.
outperformed the GDP by a healthy margin during the third quarter of 2025, although it lagged behind overall economic activity compared to the third quarter of last year.
country. Van Heerden added that, in the quarry business, every ton sold contributes to overall performance, and that is exactly what Afrimat is now experiencing. “Even previously closed quarries, which we have successfully reopened, are now receiving meaningful orders, and margins are stabilising. This trend aligns with recent construction sector data reflected in the ACI and supports the recent upgrade of South Africa’s credit rating.” What Afrimat is experiencing currently is very reassuring. “We attribute this progress to the commitment of provincial managers and leaders, as well as the private sector, who are actively working together to restore national pride and ensure that infrastructure operates effectively. We remain confident that collaboration between the public and private sectors will drive sustainable growth for all South Africans.” l
sector activity, especially due to the latest decrease in the prime overdraft rate to 10.25%. “Although the modest relaxation of monetary policy is to be welcomed, more interest rate cuts are required to bring the cost of capital in South Africa in line with our key trading partners.” Andries van Heerden, the CEO of Afrimat, says that the Group’s acquisition of the Lafarge assets was a deliberate strategic move aimed at expanding its geographic footprint and securing access to well-designed, high-quality quarries. “While these assets experienced some neglect during the Competition Tribunal approval process, they are now beginning to deliver on the potential we originally identified.” Although the Government has yet to announce major infrastructure maintenance or new development projects, Afrimat is seeing tangible benefits from provincial and private sector spending across the
namely the value of construction works (in real terms). “The lack of progress with capital formation in the economy, which is generally associated with a significant element of construction works, should be of concern to the Government, as the country is in dire need of repairs and expansion of infrastructure, especially roads, water, and sewage.” He added that it was, however, worth noting that South Africa’s economic growth prospects have improved lately, mainly due to the lower interest rates and a large measure of fiscal stability. “The latter has been boosted by the performance of gold and platinum prices, which played a key role in securing a healthy cumulative trade surplus during the first ten months of the year.” Looking ahead, Dr Botha expects a further recovery in construction
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MODERN QUARRYING QUARTER 4 | 2025
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