cities

Figure 3.15: City gross fixed-capital formation (GFCF) as a percentage of GVA (2003 and 2013)
25%
20%
15%
16%
20%
16%
20%
17%
23%
17%
23%
16%
20%
16%
22%
17%
24%
16%
21%
16%
21%
17%
23%
16%
20%
10%
5%
BUFF
CPT
EKU
ETH
JHB
MAN
MSU
NMB
TSH
SA
ALL
METROS
3
2003 2013
Source: Quantec Research (2015)
These investment rates may reflect declining business confidence, which has yet to recover to pre-2008
levels. The deteriorating business confidence across the economy, particularly in the construction and
manufacturing sectors, has negative implications for investment, employment and economic growth.
The rates also reflect the much lower public sector capital expenditure levels than the 10% of GDP
required for the NDP targets, with capital expenditure in 2013 varying between 1.1% (Ekurhuleni) and
2.4% (eThekwini) of GVA. Nevertheless, as Figure 3.16 shows, real GFCF grew faster than the national
average in Johannesburg (7.1%), Tshwane (6.9%), Msunduzi (7.2%) and Mangaung (7.1%). Unsurprisingly
Buffalo City (5.0%) and Nelson Mandela Bay (3.1%) grew at well below the national average.
Figure 3.16: Annual growth in city real GFCF (2003–2013)
8%
7%
6%
5%
5%
6.3%
6.8%
6.6%
7.1%
7.1%
7.2%
6.9%
6.8%
6.6%
4%
3%
3.1%
2%
1%
BUFF CPT EKU
Source: Quantec Research (2015)
ETH
JHB
MAN
MSU
NMB
TSH
SA
ALL
METROS
PRODUCTIVE CITIES 109