Studies have shown that when investment is made in infrastructure, it positively affects the GDP growth of a country over the long run.
This is echoed by the African Development Bank which highlighted that economic growth largely depends on several factors, including regional integration, institutional development and infrastructure. In South Africa, one of the key focus areas of the country’s development plan is infrastructure and currently, the budget reflects the country’s commitment to improving in this sector. As a country, South Africa allocates a substantial portion of the fiscus on construction and infrastructure projects, including roads, dams and pipelines. When looking at it from a GDP perspective, South Africa spends well above the average of other developing countries, at 6.2% compared to around 4% respectively. However, the National Development Plan (NDP) has outlined key areas where infrastructure must be improved to promote sustainable economic growth and competitiveness. Electricity, water, transport and telecoms are only a few of these areas, but preparing for the future – particularly urban migration and the future of our cities – is on the agenda of both government and private sector.Aurecon is a founding member of the Our African City initiative which seeks to create a collaborative space, where the needs of people are put first in light of the country’s current socioeconomic needs.
South Africa currently faces huge challenges. Low-income neighbourhoods and townships are situated on the outskirts of our major cities, which exclude a large number of people that could be participating in the economic activities. Our African City and Aurecon believe that the urbanisation of poverty and discrimination cannot continue and have thus committed themselves to change the current status quo. At the annual Vision 2030 Summit, Aurecon was present on a panel to discuss infrastructure in South Africa, where the company stated, “It is Africa’s call to be the leader in urbanisation. Let us take this journey, let us realise the NDP. This is an African dialogue and it is open to everone, the engineering sector fully embraces innovation and we have the capability of building cities that are equitable.” For more information about the Vision 2030 Summit, or a breakdown of the discussions about infrastructure development, visit www.2030vision.co.za