Department of Public Works Gets Behind South Africa's Green Building Movement

CAPE TOWN, South Africa, May 4, 2010 - Despite its young age, there are many indicators that the South African
market for green buildings is poised for rapid growth. The sustained
development of the market is likely to be ensured should government,
non-governmental organisations and the private sector work in collaboration.

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Frost & Sullivan believes that last week's appeal by the Minister of
Public Works Geoff Doidge for a greener built environment signifies that the
market forces required for the development of the South African green
building market are beginning to take shape.

"Our recent analysis of the South African green building market found
that this market, whilst still in its infancy, has high potential for
growth," says Frost & Sullivan environmental technologies analyst Linda
Harding. "The growth in membership of the Green Building Council of South
Africa (GBCSA) indicates that the South African market is responding well to
green building initiatives."

Globally, building valuation and certification systems have been shown to
support the growth of green building markets, as they provide crucial means
for benchmarking and marketing. The primary role of these non-governmental
organisations is to stimulate green building awareness and to educate policy
makers and the general public about the benefits and savings achievable
through green building practices. However, whilst the GBCSA has been
instrumental in stimulating awareness in the South African built environment,
its ability to enforce change is low.

"The private sector has a strong degree of influence over the growth of
the South African green building market, as it comprises both the potential
consumers and suppliers of green building products and services," Harding
says. "Evidence of early change within the private sector is readily
apparent. The South African Council for the Architectural Professionals has
expressed its commitment to ensuring that green building is included in
architectural curricula at tertiary institutions."

A number of market leaders within the construction materials sector have
also introduced green building materials and continue to tailor their product
offerings to address a growing local demand. However, most of these early
adopters are the market leaders in their respective industries and target
large clients to whom social responsibility is a key corporate strategy.

A strong legislative environment, supported by sufficient financial
incentives, has been found to be the most important factor in driving and
sustaining the development of green buildings markets. Highly developed and
rapidly growing green buildings markets, such as those in Asia, are strongly
supported by strict legislation and regulatory environments.

"As yet, South Africa does not have any legislation enforcing green
initiatives in the built environment," notes Harding. "The announcement by
the Department of Public Works, calling for a commitment to green building
practices, is therefore a significant step towards the development of the
market. The inclusion of minimum energy efficiency levels into the National
Building Regulations, expected to be enacted this year, will further support
this drive."

Financial incentives in the form of tax credits and exemptions to green
building consumers can promote the purchase of green equipment, as well as
encourage the innovation and development of product durability and quality
from suppliers. However, it is likely that the South African government will
be unable to grant any significant financial incentives for many years to
come, given the socio-economic needs in the country.

Hence, government should work on changing the perception of built
environment professionals and green building market participants alike. This
is likely to stimulate the perception of green building as a nation-building
opportunity, wherein jobs are created and gross domestic product is
increased, and not merely as a social obligation.

"Frost & Sullivan views the 'call for action' from the Department of
Public Works as a crucial and positive step towards stimulating the
collaboration of government, the private sector and the GBCSA in order to
realise the high growth potential of the South African green building
market," Harding concludes.

If you are interested more information on Frost & Sullivan's analysis of
Green Building markets in South Africa, please send an e-mail to Patrick
Cairns, Corporate Communications, at patrick.cairns@frost.com, with your full
name, company name, title, telephone number, company e-mail address, company
website and country.

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    Contact:
    Patrick Cairns
    Corporate Communications - Africa
    P: +27-18-464-2402
    E: patrick.cairns@frost.com

www.frost.com

Patrick Cairns of Frost & Sullivan Corporate Communications - Africa, +27-18-464-2402, patrick.cairns at frost.com