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Wednesday, November 19, 2008.
From Creamer Media in Johannesburg, I'm Shannon O'Donnell.
Making headlines today:
The International Finance Corporation's head of infrastructure David Donaldson said that a lack of bankable projects and deals, rather than a lack of finance, was constraining private sector investment in infrastructure in Africa.
He noted that the public sector still invested about 90% of funding for infrastructure in Africa. He said, however that there had been some growth in private sector investment in infrastructure in Africa.
He said that Africa would have to double its investment in infrastructure to sustain the continent's growth and that the private sector would have to invest more.
Further, Donaldson noted that Africa spent very little on energy, transport and water infrastructure. The majority of funding was being used in the telecommunications sector.
On Tuesday, Finance Minister Trevor Manuel said that South Africa isn't facing a recession. This is despite major industrialised countries like Japan and the euro zone slipping into negative growth.
The Treasury has argued economic fundamentals in Africa's biggest economy are sound and the country is largely cushioned from a global crisis. However, growth is seen lower at 3,7% this year and 3% in 2009 from an average 5% of the last four years.
Manuel told parliament's finance committee that there was no recession. He said analysis by the Treasury didn't suggest the country faced two consecutive quarters of negative growth.
Some analysts say the economy may have dipped into decline in the third quarter, given a sharp slowdown in manufacturing and mining output and falling retail sales.
Also making headlines:
Lesotho says that regional integration will boost Africa's competitiveness.
Hotel group Southern Sun pushes ahead with its 1,5-billion rand capex plan, despite the slowdown.
The Industrial Development Corporation invests in civil engineering firm Basil Read.
And, Freeworld Coatings reports growth in its first year as a separately-listed firm.
That's a round up of news making headlines today. For more on these and other stories please visit engineeringnews.co.za.