The development of the R1.7-billion Baywest Mall in Port Elizabeth is one of the projects that has helped boost the construction industry in the province, according to Eastern Cape Economic Development, Environmental Affairs and Tourism MEC Mcebisi Jonas.
The development of the R1.7-billion Baywest Mall in Port Elizabeth is one of the projects that has helped boost the construction industry in the province, according to Eastern Cape Economic Development, Environmental Affairs and Tourism MEC Mcebisi Jonas.
In a media statement this week he referred to the Quarterly Labour Force Survey (QLFS) published by StatsSA, saying more jobs were created in the construction sector in the Eastern Cape than in any of the provinces in the first nine months of this year.
During this period the number of people employed in the construction industry increased by 25 000 to 153 000. The change between the second and third quarters was 19 000. The industry in this province now employs more people than the Western Cape (134 000) and is third behind Gauteng (251 000) and KwaZulu-Natal (230 000).
Describing the figures as “exciting,” Jonas said one factor in the growth of employment in the sector was the pace at which the industrial development zones at Coega and East London were expanding.
“The eight investors secured for the Coega IDZ in the last financial year translated into 1 302 construction jobs while in the 10 years of its existence the East London IDZ has created 21 090 direct construction-related employment opportunities”.
A further factor, he said, was the investment by state-owned enterprises, specifically Transnet.
“Transnet has committed significant funding to projects in the Eastern Cape such as the expansion of the ports of Ngqura, Port Elizabeth and East London, as well as rail line upgrades that will mean that jobs in the construction are likely to be of a more permanent nature.”
He said Eskom had also committed to investing R2.5 billion in transmission and distribution infrastructure, while development around Mthatha as it was developed as the gateway to the Wild Coast, was also a contributing factor.
He said there were also roads agency projects connected to the upgrading of the N2 between Port Elizabeth and King William’s Town. In future there would be the N2 Wild Coast Road, as well as a significant number of projects being driven by the Education and Health departments.
He also mentioned major private sector initiatives such as the Baywest City development in Port Elizabeth.
According to its developers, about 1 500 local jobs will be created during the mall’s construction phase, out of a total of 3 000 direct jobs. A further 7 000 indirect and induced jobs will be created.
Jonas also pointed to the fact that figures provided by StatsSA showed that the value of building plans passed by larger municipalities in the Eastern Cape was growing significantly.
“In the first eight months of this year, the value of buildings plans passed increased by 35.2% to R3.3 billion, with plans for non-residential buildings such as shopping malls growing by 95.7% to R1.3 billion.”
The MEC said what made the figures more impressive was that several major projects had yet to get under way.
“Most of the Transnet construction work, such as that connected to the new manganese facility at Ngqura and coal export terminal at East London, has yet to begin, while the pace of investment in the IDZs can be expected to quicken.
“If we then factor in future mega-projects such as the Mzimvubu Dam, Nuclear 1 at Thyspunt, Project Mthombo – the proposed oil refinery – and the manganese smelters at Coega and the multi-model OEM in the East London IDZ, the future of the construction industry in the Eastern Cape looks particularly bright.”
