It’s not just them [Group Five]… The entire sector has taken quite a knock… A lot of projects fell off the books… I suspect we might see one or two more casualties...— Craig Parker, Economist and Research Director - Frost and Sullivan
South Africa’s once-thriving construction industry is crumbling.
On Tuesday, Group Five – one of the largest builders in Africa - filed for bankruptcy protection after its creditors pulled funding.
Group Five was founded in 1974.
It employs 8000 people.
The JSE has suspended trading in Group Five shares.
They last traded at 89 cents, giving Group Five a market value of about R100 million.
Ten years ago it had a market cap of more than R5 billion.
Basil Read – another huge construction company – filed for business rescue in mid-2018.
Listen to the interview in the audio below.
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