Infrastructure projects are no cure for ailing SA economy

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Expenditure on infrastructure in South Africa has declined significantly over the past few years in order to make up for gaps caused by lower-than-expected tax collection and policy changes such as free tertiary education. Picture: Supplied
Expenditure on infrastructure in South Africa has declined significantly over the past few years in order to make up for gaps caused by lower-than-expected tax collection and policy changes such as free tertiary education. Picture: Supplied

Infrastructure projects are not a miracle cure that will put South Africa’s sick economy back on to the road to recovery.

Infrastructure investments of more than R2.3 trillion that government hopes to realise over the next 10 years are less than what’s been spent historically on buildings, roads and other projects, says Lullu Krugel, chief economist at PwC.

At an infrastructure symposium this week, President Cyril Ramaphosa announced that 88 of about 276 projects were ready for investment.

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