An econometric analysis of the impact of the RDP on the demand for construction materials in South Africa

Abstract

The Reconstruction and Development Programme (RDP) is an attempt by the South African government to redress the imbalances of apartheid. It has many facets. One of these involves the provision and distribution of infrastructure to citizens who hitherto have been neglected. This calls for significant construction effort particularly for housing, water, roads and other social construction. This will require efficient production, and allocation of resources to ensure that there is adequate supply of materials to meet the likely increase in demand. This paper examines the expected demand for construction materials, assesses the supply capacity of South African suppliers of construction materials, and develops an econometric model which can be used to evaluate the impact that growth of the internal construction activity will have on construction industry suppliers.