http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.17Change: 0.03
R/$ = 11.07Change: 0.01
Au 1238.28 $/ozChange: -4.47
Pt 1258.00 $/ozChange: 3.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jul 10, 2012

Infrastructure, labour hurdles holding back SA growth

Back
Construction|Johannesburg|Africa|Africa|South Africa|Manufacturing|Manufacturing Sector|Real Gross Domestic Product|Andrew Levy|Andrew Levy Labour|Hylton Macdonald|Infrastructure|Ronel Oberholzer
Construction||Africa|Africa||Manufacturing||Infrastructure|
construction|johannesburg|africa-company|africa|south-africa|manufacturing|manufacturing-sector|real-gross-domestic-product|andrew-levy|andrew-levy-labour|hylton-macdonald|infrastructure|ronel-oberholzer
© Reuse this



If the South African government kept to infrastructure spending targets and labour unions limited wage increases to 1% above inflation, the country's real gross domestic product (GDP) could grow by a minimum of R22-billion a year, IHS Global Insight sub-Saharan Africa principal economist Ronel Oberholzer said on Tuesday.

She stated at the IHS Africa Economic Outlook Conference, in Johannesburg, that this could also create a minimum of 300 000 jobs in the country.

Oberholzer emphasised that good economic leadership would be required to overcome challenges and elevate economic growth. At the conference, South Africa's labour and infrastructure hurdles were highlighted as key aspects to be addressed to allow for notable economic development.

Although South Africa showed relatively good growth over the past two years, compared with developed countries, it was not on par with its emerging peers.

The country also showed uneven and hesitant growth following the global recession. Oberholzer pointed out that growth was not driven by the construction and manufacturing sector, but by increased consumption expenditure, as the government pushed up its employment numbers. However, consumption expenditure was expected to decline, as the current government employment levels would not continue in the long term.

Oberholzer stated that unemployment would, therefore, be a concern going forward, amplified by the forecast that the private sector would continue its trend of low employment numbers and would not come to the rescue.

Aveng group risk manager Hylton Macdonald said the local infrastructure sector was at a tipping point, overshadowed by underspending and job losses.

"Government cannot overcome this alone, the private sector will have to contribute in terms of job creation, skills development and enterprise development," he suggested.

Meanwhile, Andrew Levy Labour Relations Advisors owner Andrew Levy agreed that unemployment posed a real threat to South Africa's economic growth. "The black youth are the worst affected and this is government's worst failure," he stated.

Levy proposed that unemployment could be tackled if centralised bargaining was scrapped, labour legislation was overhauled, especially in terms of strikes and dismissals, and if job subsidies for the labour market were implemented. If these collective targets were met, South Africa could be ready for a real economic takeoff.
 

Edited by: Mariaan Webb
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Economy News
A former employee of the Manufacturing, Engineering and Related Services Sector Education and Training Authority (Merseta) and his accomplice have each been sentenced to 20 years imprisonment after being found guilty of fraud by the Specialised Commercial Court, in...
Judge Dennis Davis
The revenue implications for South Africa of ‘base erosion and profit shifting’ by corporate taxpayers are firmly in the crosshairs of the Davis Tax Committee (DTC) and Judge Dennis Davis hinted on Monday that recommendations were being considered to “detect and...
Resources, financial services and healthcare companies faced significant threats arising from changing legislation and political policy, a recent study by professional services firm Deloitte of the JSE’s top 100 companies has shown. To produce its Dissecting...
More
 
 
Latest News
A former employee of the Manufacturing, Engineering and Related Services Sector Education and Training Authority (Merseta) and his accomplice have each been sentenced to 20 years imprisonment after being found guilty of fraud by the Specialised Commercial Court, in...
The Richards Bay Bulk Terminal, in KwaZulu-Natal, loaded 1.49-million tons of cargo in September, exceeding its monthly target of 1.32-million tons, Transnet Port Terminals (TPT) said on Monday. TPT said the reaching of vessel targets ahead of deadline created...
Judge Dennis Davis
The revenue implications for South Africa of ‘base erosion and profit shifting’ by corporate taxpayers are firmly in the crosshairs of the Davis Tax Committee (DTC) and Judge Dennis Davis hinted on Monday that recommendations were being considered to “detect and...
More
 
 
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
 
 
 
 
 
This Week's Magazine
The broad-based black economic-empowerment (BBBEE) alignment process in the con-struction sector has begun, dur-ing which the sector codes of the Construction Sector Charter Council (CSCC) will be aligned with the revised Codes of Good Practice (CoGP), which come...
It is second time lucky for Toby Venter. Ten years ago he negotiated to buy the Kyalami racetrack, but “the deal did not materialise”.
Environmental solutions company I-Cat started construction work on its R22-million, 1 949 m2 environmentally sustainable office and warehouse facility, commissioned by I-CAT Environmental Solutions, at a launch event in October. The new sustainable I-CAT campus,...
IAN EVANS AirWatch file synchronisation and sharing system was initially designed for a large airline company
Effective file synchronisation and sharing across an organisation’s structures can provide the basis for robust mobile-device and document management while maintaining proper backup, version control and content distribution. These are the lessons learned by complex...
Hotel group Carlson Rezidor currently holds the largest hotel pipeline in Africa with 30 hotels and 6 300 rooms under development. The hotel group develops and operates Radisson Blu in the upper upscale segment and Park Inn by Radisson in the mid-market segment. With...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks