433369666-The-Case-for-Investing-in-South-Africa

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AN EXTENSIVE INFRASTRUCTURE
DEVELOPMENT PROGRAMME IS UNDER WAY
• South Africa’s public sector has, for several years, been rolling out an extensive capital expenditure programme
aimed at addressing backlogs and capacity constraints in the country’s physical infrastructure.
• The ongoing and planned fixed investment programme will raise the economy’s potential and permit a
sustainable high-growth trajectory.
• This long-term strategic programme to build an efficient, competitive and responsive economic infrastructure
network is captured in the National Infrastructure Plan (NIP).
• The energy, transport and water sectors represent the bulk of the infrastructure investment spending plans for the
years ahead. The NIP also aims to support the integration of African economies and the development of intraregional
value chains.
• South Africa’s public sector spent ZAR255.1-billion on infrastructure development in the 2018/19 fiscal
year, according to National Treasury estimates. The bulk of public sector fixed investment expenditure is on
construction works.
COMPOSITION COMPOSITION OF PUBLIC OF SECTOR PUBLIC FIXED SECTOR INVESTMENT FIXED EXPENDITURE INVESTMENT
2018
EXPENDITURE IN 2018
R&D, computer
software, 5.2%
Machinery and
equipment, 8.6%
Residential
buildings, 0.7%
Non-residential
buildings, 12.6%
Computers and
related equipment,
2.4%
Transport
equipment, 10.3%
Construction
works, 60.2%
Source: IDC analysis, compiled using South African Reserve Bank data
Source: IDC analysis, compiled using South African Reserve Bank data