http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.28Change: -0.15
R/$ = 11.07Change: -0.16
Au 1226.28 $/ozChange: -9.84
Pt 1348.00 $/ozChange: -14.00
 
 
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 Construction News
Updated 2 hours 54 minutes ago Infrastructure development on the continent has gained momentum, with a special office to be set up soon, to champion this cause. Cabinet on Thursday announced that it has approved the establishment of the Project Management Office for the African Union Presidential...
In a landmark R1.5-billion deal that precedes it planned listing on the JSE, Pivotal Property Fund has acquired “strategic” land and property assets from Standard Bank Properties, which includes Sandton’s landmark Alice Lane development. “Pivotal has acquired...
Noting that it had made “great strides” in achieving its performance targets in the first quarter of the 2014/15 financial year, the Department of Public Works said this week that it had attained 60% of its 81 listed targets, which it believed was an indication that...
Article contains comments
More
 
 
Latest News
Updated 2 hours 45 minutes ago Despite apparent legitimate reasoning behind State-owned power utility Eskom’s electricity tariff increases, increased costs would undoubtedly hurt those in the lower portion of South Africa’s income distribution, consulting firm Frost & Sullivan Africa energy and...
Geoffrey Qhena
Updated 2 hours 52 minutes ago The detailed feasibility study into a $4.5-billion, two-phase steel project planned for development by the Hebei Iron and Steel Group, of China, and South Africa’s Industrial Development Corporation (IDC) should be completed in the first quarter of 2015, IDC CEO...
Updated 2 hours 54 minutes ago Infrastructure development on the continent has gained momentum, with a special office to be set up soon, to champion this cause. Cabinet on Thursday announced that it has approved the establishment of the Project Management Office for the African Union Presidential...
More
 
 
Recent Research Reports
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.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
 
 
 
 
 
This Week's Magazine
The board of UD Trucks Southern Africa (UDTSA) has announced the resignation of MD Jacques Carelse.   Long-time UD employee, corporate planning and marketing GM, Rory Schulz, has been appointed as acting MD while the process started to appoint a new MD. The Japanese...
There is a need to start planning another pumped storage scheme in South Africa. Much work has already been done at a site in the Limpopo province and the project was very close to being put out to tender at one stage. In 2008/9 the National Energy Regulator of South...
The Coega Development Corporation (CDC) is preparing to leverage its strategic coastal position to develop the Eastern Cape economy through proposed aquaculture development zones (ADZs), with a proposed R2-billion project aiming to contribute $278-million to the...
Completion of the ongoing construction of the 102 km Zomba–Jali–Phalombe–Chitakale road, in southern Malawi, has been extended from June  to December 15 because of persistent rains and difficulties in paying the contractor. The project is being undertaken by Kuwait's...
The Malawi government has awarded South African firm  Fischer Consortium the  contract to upgrade the Malawi Road Traffic Information System. The Directorate of Road Traffic and Safety Services at Malawi's Ministry of Transport and Public Works says Fischer...
 
 
 
 
 
 
 
 
 
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