BLSA Chair unpacks infrastructure report

20/05/2021 | By Admin

Business Leadership South Africa has launched a report on solutions to boost infrastructure investment so that it achieves the 30% target set by the National Development Plan.

Business Day TV’s Alishia Seckam unpacked the report in detail with BLSA’s chair, Nonkululeko Nyembezi.

Nyembezi says a confluence of factors has contributed to the infrastructure deficit, with infrastructure investment sitting at 18% of gross domestic product – way off the 30% target of the NDP.

A major factor is government’s fiscal constraints, which is compounded by the capacity to bear SOE debts.  On the business side, the weaker economic cycle is hitting consumer demand and that curbs investment spending into the economy, including on infrastructure projects.

You then overlay Covid-19 on that cocktail of factors and you get what we have now – which is infrastructure deficit.

But there is no question that implementation is an issue. The infrastructure report has also highlighted the issue of skills drainage as a contributing factor.

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