A severe shortage of skilled labour is undermining construction across Africa, with South Africa among the hardest hit. In a 2024 report, the International Labour Organization (ILO) identified the skills gap as a major contributor to substandard construction work and escalating project costs.This shortage impacts the entire construction value chain—from design and build to maintenance. Contractors are increasingly forced to redo subpar work, driving up costs and delaying project completion. In South Africa, the problem is especially acute in the Western Cape, where rapid urban growth and semigration have increased the demand for housing and infrastructure. This has pushed up

n a significant policy shift, South Africa’s government has decided to withdraw its proposed increase in the Value-Added Tax (VAT) rate, a decision that has sent ripples through the country’s political and economic landscape. For the construction industry, this development is more than just a fiscal policy change — it could have far-reaching implications for costs, project budgets, and the broader economic environment. This article delves into the reasons behind the VAT reversal, its immediate impact on the construction sector, and what it means for industry stakeholders in the months ahead. The VAT Hike: A Policy in Flux In late