Concerns Rise Over Murray & Roberts’ Potential Liquidation in South Africa’s Construction Sector

The South African construction industry is abuzz with anxiety following the potential liquidation of Murray & Roberts, a company with a storied history in the sector. Prominent industry stakeholders and labor unions are warning that the closure of this iconic firm could have far-reaching repercussions.

Legal actions have been initiated in the Gauteng Division of the High Court by a creditor seeking a final or provisional winding-up order against Murray & Roberts. In a notable development, the company has signaled that it will not contest this application, marking a stark turn in its long-standing financial struggles, which had previously prompted a business rescue process.

Founded in 1902, Murray & Roberts boasts over 120 years of operations and is recognized for its role in creating significant South African landmarks, including the Carlton Centre and the Gautrain. However, the firm now faces the grim prospect of closure through creditor-led liquidation proceedings.

Economist Professor Jannie Rossouw commented on the situation, indicating that the company’s financial woes come as no surprise. “It has been evident for some time that Murray & Roberts was grappling with severe liquidity constraints and the divestment of its core assets,” he stated. “The longstanding low economic growth in South Africa, lasting over a decade, has severely impacted businesses. Murray & Roberts had positioned itself for increased infrastructure development, which has not materialized, rendering it operationally non-viable.”

Murray & Roberts was placed under business rescue in November 2024 due to ongoing financial difficulties. The company’s decision not to oppose the liquidation application underscores its bleak financial reality.

Lufuno Ratsiku, President of the South African Council for the Project and Construction Management Professions, described the potential liquidation as a significant setback for the industry. “This is a tragic scenario for the thousands of professionals employed in construction. At its peak, Murray & Roberts employed approximately 10,000 individuals, and while current figures show a reduction to just over 5,000, the actual number of people affected could be much higher due to various employment arrangements.”

Ratsiku expressed concern about the broader implications of job losses within the context of a struggling economy, stating, “In this economic climate, the loss of jobs and employment opportunities will be devastating.”

The anticipated liquidation of Murray & Roberts serves as a stark reminder of the challenges facing the South African construction industry and raises urgent questions about the future of major employers in the sector.