SA's construction industry is on the brink

THE South African construction industry is facing a potential collapse due to shrinking margins, unfair practices and rampant delays or outright refusal to pay subcontractors.

This warning comes from the Master Builders Association (MBA) North, urging for urgent action to prevent further job losses and bankruptcies.

“The industry is bleeding — it’s in dire straits,” said Mohau Mphomela, executive director of MBA North.

MBA North members highlight delayed and non-payment as one of the biggest challenges to South Africa’s construction sector.

Smaller businesses, especially subcontractors, are most vulnerable, often waiting months or even years for payment, even after completing their work, according to MBA North.

This financial strain puts them at risk as they struggle to pay workers and suppliers.

AIRTEL Africa, Nigeria’s second largest telecoms company has reported significant financial setbacks due to currency devaluations in several of its key markets, notably Nigeria and Malawi, resulting in a staggering US$1,7 billion in derivative and foreign exchange losses for the fiscal year ending March 31, 2024.

Despite robust growth in service revenues when measured in constant currency, with a reported increase of 20,9% overall and accelerating to 23,1% in the fourth quarter, Airtel’s financials in reported currency tell a different story.

The company witnessed a decline in group revenue by 5.3% to US$4,979 million, and a 5.7% drop in EBITDA to US$2,428 million. These figures primarily reflect the severe impact of the Nigerian Naira and Malawian Kwacha’s devaluation against the US dollar.

The Nigerian Naira devalued drastically from 461 to 1,303 per US dollar during the year, deeply affecting Airtel’s financial outcomes.