Some policy proposals for future infrastructure investment in South Africa
Stellenbosch Working Paper Series No. WP05/2006Publication date: 2006
Author(s):
The South African government has begun to ramp up economic infrastructure investment. This is an important policy shift and in line with the government’s aim of increasing economic growth to 6% and halving poverty by 2014. It follows that we are left with the question: What are the most important areas for infrastructure investment, both type and location? This paper provides a short review of the essential characteristics of infrastructure as well as a guide to the past and present features of South Africa’s infrastructure stock. Three main policy proposals are made: provide basic infrastructure to all, improve the quality of existing infrastructure, and provide transnational infrastructure. Since 1994, the government has increased the access to basic services of a large part of the population, although there is still room for improvement. However, a lack of institutional and managerial capacity at the local level seems to be a constraint on delivering basic infrastructure services. Furthermore, comparative analysis reveals that the country’s infrastructure quality lag those of other countries. However, politicians may prefer to provide new infrastructure rather than improving existing infrastructure, as it provides a wider support base. This could lead to significant inefficiencies, especially with the politically sensitive 2010 Soccer World Cup approaching. Regional integration is an important long-term requirement to ensure sustainable economic growth and prosperity for the countries of southern Africa. Currently, South Africa is poorly integrated into the rest of Africa. The current transnational institutions – SACU, SADC, NEPAD – do not have the institutional and financial capacity to provide such infrastructure. A strong emphasis on providing transnational infrastructure – specifically transport, energy and ICT infrastructure – is proposed.
JEL Classification:H54, N77, R53, L90
Keywords:infrastructure, South Africa, basic services, transnational
Download: PDF (3.3 MB)Login
(for staff & registered students)
Upcoming Seminars
Monday 28 July 202512:00-13:00
Dr Neil Rankin: Ceo Of Predictive Insights & Stellenbosch University
Topic: "TBC"
12:00-13:00
Prof Willem Boshoff
Topic: "Two competing approaches in South African competition policy: merger control and anti-cartel enforcement over the past 30 years"
12:00-13:00
Prof Derek Yu: University Of The Western Cape
Topic: "Examining the teaching, assessment and research activities of the South African Economics Departments"
BER Weekly
6 Jun 2025 SA GDP barely expands in Q1, while BCI and PMI suggest that Q2 remained weakIt was a busy week for local data releases, much of which painted a bleak picture of SA’s economy. Not only was first-quarter GDP growth dismal, but 2024 growth was also revised lower to just 0.5%. , The RMB/BER Business Confidence Index (BCI) showed sentiment remained shaky in the second quarter...
Read the full issue
Upcoming Seminars
Monday 28 July 202512:00-13:00
Dr Neil Rankin: Ceo Of Predictive Insights & Stellenbosch University
Topic: "TBC"
12:00-13:00
Prof Willem Boshoff
Topic: "Two competing approaches in South African competition policy: merger control and anti-cartel enforcement over the past 30 years"
12:00-13:00
Prof Derek Yu: University Of The Western Cape
Topic: "Examining the teaching, assessment and research activities of the South African Economics Departments"
BER Weekly
6 Jun 2025 SA GDP barely expands in Q1, while BCI and PMI suggest that Q2 remained weakIt was a busy week for local data releases, much of which painted a bleak picture of SA’s economy. Not only was first-quarter GDP growth dismal, but 2024 growth was also revised lower to just 0.5%. , The RMB/BER Business Confidence Index (BCI) showed sentiment remained shaky in the second quarter...
Read the full issue