KwaZulu-Natal’s construction tenders rebound to R16bn amid infrastructure backlog

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27-11-2025
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Property Wheel
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KwaZulu-Natal remains one of SA’s most strategically important yet structurally constrained construction markets, grappling with the long-term impact of flood damage worth up to R30 billion, inadequate disaster funding, and a decade-long decline in both tenders and awards – now standing at less than one-third of 2011 activity.

While the strained environment has intensified the infrastructure backlog and limited job creation, leaving contractors under significant financial pressure, the province shows clear signs of revival according to Industry Insight with public tenders having rebounded to R16 billion in Q3 2025, driven largely by provincial (up 133% year-on-year) and municipal spending (up 33% year-on-year), which together, accounted for almost 70% of all tenders released during the period.

The province’s development regions showed markedly different trajectories with KwaDukuza recording a 40% rise in building plan approvals in 2024; eThekwini South having surged by 357%; and eThekwini Central having increased by 26%.

Strong 2024 approvals and Transnet’s R90 billion logistics investment commitments provide additional support, although early signs of slowing pipeline growth suggests caution for 2026.

Private sector demand in KwaZulu-Natal remains relatively mixed. Industrial and multi-unit housing categories show comparatively stronger momentum while commercial and single-unit residential activity remain subdued.

For stakeholders, KwaZulu-Natal represents a province of high potential but equally high execution risk, requiring careful monitoring, disciplined risk management, and a data-driven approach to identifying real opportunities in a volatile environment.