South Africa will have an infrastructure investment gap of 4.8 trillion South African rands ($293 billion) by 2030 unless it increases investment in infrastructure to meet the targets set under National Development Plan, e-newspaper Moneyweb reported, citing Dr. Hurbert Joynt, programme manager for Infrastructure South Africa’s Centre for Excellence.
The prediction for the investment gap is based on past investment trends, and the current goal must be met by 2030 in order to achieve the GDP gross fixed capital formation target of 30%. To support South Africa’s post-Covid-19 economic recovery, the government published 62 Strategic Integrated Projects valued at R340 billion in July 2021.
The government presented a pipeline of 55 new catalytic infrastructure projects later in October 2021, totaling roughly R595 billion in estimated cost. The prediction for the investment gap is based on past investment trends, and the current goal must be met by 2030 in order to achieve the GDP gross fixed capital formation target of 30%.
To support South Africa’s post-Covid-19 economic recovery, the government published 62 Strategic Integrated Projects valued at R340 billion in July 2021. The government presented a pipeline of 55 new catalytic infrastructure projects later in October 2021, totaling roughly R595 billion in estimated cost.
“So it’s quite a daunting task ahead but that is one of the reasons why Infrastructure South Africa, together with the Infrastructure and Investment Office in the Presidency, also developed the Country Investment Strategy to ensure that we do attract additional infrastructure and other investment to the country.”- Dr Hurbert Joynt, programme manager for Infrastructure South Africa’s Centre for Excellence.
Joynt emphasized that it is not always the case that money is not accessible, saying that it is pretty obvious that there is some underspending in terms of approved budgets. He claimed that while the NDP’s ambition is 10%, current public infrastructure investment spending is just about 3.3% of GDP, down from its prior level of over 7%.
