Aug 21, 2009
Creating 500 000 jobs by year-end an ambitious target – KPMGBack
Construction|Africa|KPMG|PROJECT|Project Management|Projects|Sustainable|Africa|South Africa|Adequate Infrastructure|Advisory Services|Services|Infrastructure|Jeff Shaw
© Reuse this
“One of the difficulties that government will have, is measuring where, when and how jobs are created. I am aware that, in the new government structure, a Planning Commission, together with a Monitoring and Evaluation function, has been established in the Presidency and, in the long term, that will help to put in place accurate measures for job creation,” states Shaw.
He points out, that in order to create more jobs, a realistic and sustainable view of economic growth and opportunity needs to be adopted by South Africa to encourage and fulfil the upliftment of its people.
The recent World Economic Forum raised awareness around the dire need for social upliftment and job creation – globally – as a result of the recession.
KPMG believes that the key driver for sustainable job creation lies in government’s R787-billion infrastructure spend. This initiative will only realise the expected benefits if clear socioeconomic targets are set at macro level and then rolled out to every project in a way that can be monitored and managed. Putting in place the processes necessary to plan and monitor the infrastructure spend will take time.
“If one looks at the infrastructure initiative, I do not believe that we are vastly different from the rest of the world. KPMG recently carried out a series of global surveys centring around infrastructure, which have indicated that, with small regional differences, the global view of the benefits and challenges facing national infrastructure programmes are surprisingly similar.
“Globally, survey respondents see the lack of adequate infrastructure as limiting economic growth and there is consensus that infrastructure delivery stimulates economic growth. Clearly, though, the impact of the spend as a key driver to getting economies out of the slump is a function of how quickly, efficiently and effectively the projects can be delivered.”
Shaw adds that, according to the KPMG survey, globally, the number one concern around getting infrastructure moving relates to government’s effectiveness.
“About 76% of the respondents said government’s effectiveness is seen as the major risk to infrastructure delivery, and that
includes South Africa. Provided it is well structured and managed, the infrastructure spend has the potential to spur development, but it needs to be done correctly and efficiently.”
In the developed countries, infrastructure programmes tend to focus on replacing or upgrading existing assets, but in South Africa most people still lack basic amenities, and the infrastructure programme is focused on new assets.
“In the past, most of the focus in our projects was on the traditional project management imperatives of time, cost and scope of the end product. “We believe that socioeconomic objectives will become as important as the traditional measures of project success.
“Since 1994, all government projects include a social upliftment component. Our view is that all significant government contracts should require achievement of specified socioeconomic goals, which will differ from project to project. This will require a much higher level of planning and management from both government and the contractors and vendors,” states Shaw.
He emphasises that measurable objectives should be set, covering a wide range of socioeconomic objectives, both during construction of the infrastructure and during its economic life.
Edited by: Martin Zhuwakinyu© Reuse this Comment Guidelines (150 word limit)
Other Construction News
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
South Africa remains an important manufacturing and export platform for Ford Motor Company, says executive chairperson Bill Ford. However, he adds that other countries on the continent are “becoming interesting”, and that the US carmaker is casting its net wider for...
Germany’s Max-Planck-Society (MPG) and the Max-Planck-Institute for Radio Astronomy (MPlfR) are investing €11-million (about R150-million) into South Africa’s MeerKAT radio telescope array programme. The money will be used to design, build and install S-band radio...
Infrastructure spend in sub-Saharan Africa will grow from $70-billion in 2013 to $180-billion by 2025, says PwC capital projects and infrastructure Africa leader Jonathan Cawood. This is one of the findings of PwC’s Capital Projects & Infrastructure report on East...
Private-owned defence and aerospace manufacturer Paramount Group and the Ichikowitz Family Foundation unveiled its Anti-Poaching Skills and K9 Training Academy in Magaliesburg last month.
The inclusion of Bluetooth to provide sub-three meter accuracy and heightened functionality for users is one of the ways to change existing wireless networks into engagement networks. An engagement network differs from common wireless networks in that it enables the...