Building and construction hobbled by poor local government and rate hikes, economist says
Dysfunctional, bankrupt municipalities means public infrastructure is increasingly falling into disrepair and decay, Roelof Botha says in the latest Afrimat Construction Index
23 March 2023 - 18:21
Ongoing interest rate hikes and the dire state of local municipalities are the reasons for SA’s moribund building and construction sectors, according to economist Roelof Botha.
Commenting on the Afrimat Construction Index (ACI) covering the fourth quarter of 2022, Botha said higher interest rates are often inversely correlated to GDP and, as a “general rule”, leads to subdued construction and property market activity...
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