http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 12.78Change: 0.15
R/$ = 11.42Change: -0.02
Au 1292.85 $/ozChange: 2.15
Pt 1263.00 $/ozChange: -8.50
 
 
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 Construction News
Eskom CEO Tshediso Matona believes positive results from the current turnaround plan at the embattled utility will begin showing through in the next 18 to 24 months and has committed to continue “telling it as it is and telling it like it has never been told” so that...
Eskom CEO Tshediso Matona
Apart, perhaps, from the Stoney ginger beer pick-me-up on his conference table and the queue of awaiting visitors in his reception area, there are few other signs of the pressure Eskom CEO Tshediso Matona is under. His corner office on the third-floor at Megawatt...
INCREASED DEMAND While some developers are cutting down on expenditures, Krisp Properties has been registering increased demand for its OR Tambo-based office park
US-based beverage producer Pepsi this month set up operations, with about 300 employees, at a new R70-million high-tech, custom-built headquarters at OR Tambo International Airport’s Aerotropolis precinct in Johannesburg. Pepsi, through its South African company...
More
 
 
Latest News
Updated 9 minutes ago Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
JSE-listed Hudaco Industries’ share price climbed nearly 16% on Friday afternoon as the company announced that it would bring an end to a years-long tax challenges with the South African Revenue Service (Sars). In a trading statement to shareholders, Hudaco revealed...
President Jacob Zuma
South Africa was open for more investment and the country offered investment opportunities that no “wise” businessperson should miss, President Jacob Zuma told captains of commerce and industry during the yearly Business Interaction Group meeting on the sidelines of...
More
 
 
Recent Research Reports
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
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.
 
 
 
 
 
This Week's Magazine
BRUCE BRADFORD The 3D printers have a clear upgrade path to eventually print in wood, ceramics and metal-alloys
Three-dimensional (3D) printers being sold in South Africa by electronics distributor Rectron currently print in two types of plastic, but have a clear upgrade path over the next five years to eventually print in wood, ceramics and metal-alloy materials, says Rectron...
The world’s two dominant commercial aircraft manufacturers, Airbus of Europe and Boeing of the US, both recently announced that they had made record aircraft deliveries in 2014. Boeing set a global record for the industry with 723 commercial aircraft delivered, while...
The Western Cape is shifting further into the renewable-energy space with the official opening of a factory specialising in solar inverters, a key component of solar photovoltaic (PV) plants. The investment in the manufacturing facility in Cape Town aims to boost the...
Business Leadership South Africa (BLSA) last month welcomed Cabinet’s establishment of a technical team war room to undertake various interventions to improve electricity supply security over the short- and medium-term, but added that the private sector also had a...
Despite a rapid rise in mobile connections and the economic and social benefits of such connectivity, more than half of the world ended 2014 unconnected. For this reason, industry commentators believe the biggest impact of mobile technology is still to come –...
 
 
 
 
 
 
 
 
 
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