Overview
Construction activity is driven by public infrastructure, LHWP Phase II works, urban housing and commercial development. The sector creates significant MSME employment in trades and presents opportunities for local materials manufacturing and prefabrication. It contributed 3% to GDP in 2024 (Source: BOS 2024).
Sector Structure and Key Facts
- Demand: Dams, roads, public buildings and estates expansion.
- Materials: Opportunities in bricks/blocks, aggregates, cement inputs, steel fabrication and finishes.
- Employment: Large employer of artisans (bricklaying, plumbing, electrical, welding) and engineers.
- Trends: Rising use of prefabrication and green building solutions.
Competitive Analysis
Lower labour costs than SA and ready demand from public works; LNDC estates support industrialised construction suppliers; proximity to Free State suppliers for inputs.
Institutional and Legal Framework
- Ministry of Public Works and Transport – construction policy, regulation and standards.
Incentives and Support Schemes
| Incentive Type | Details |
| Industrial Land and Shells | Sites and factory shells for fabricators on LNDC estates. |
| Duty Relief | Input tariffs relief for capital equipment/materials per RSL rules. |
| Skills Programmes | TVET and contractor development programmes with partners. |
Key Investment Opportunities
Prefabrication; construction materials; EPC partnerships on LHWP and public buildings; green retrofits and energy‑efficient solutions.
Other Investor Information:
Compliance with the Public Procurement Act (2023) is essential; cash‑flow management and bonds/guarantees are critical for contractors.
Compliance and Participation Strategies.
Register as contractors per national standards; ensure procurement compliance; implement OHS and environmental management systems.
Key Takeaways:
- Strong pipeline from LHWP and public works.
- Materials and prefab can localise value.
- Procurement and OHS capability determine success.
Checklist for Foreign Investors
- Contractor registration
- Bonds/insurance in place
- Secure factory/yard
- Build supplier MOUs