Chapter 14 Public-Private Partnerships, Public Infrastructure Investment and Prospects for Economic Growth in South Africa (original) (raw)

Public infrastructure: definition, classification and measurement issues

Beginning from the end of the 1980s many studies analysing the relation between infrastructures endowment and economic development have been realised. A general consensus is achieved around the idea that basic infrastructure facilities are important features related to economic performance, although both magnitude and causality direction are debated. A peculiar feature of these studies is that, across them, different empirical and theoretical entities are referred to infrastructure. Although the vast body of literature on infrastructures economic impact have been largely reviewed less attention have been paid to the term infrastructure per se. This article, aiming to provide a helpful instrument to critically interpret the existing literature, zooms in on infrastructure definition and then reviews different categories of infrastructures utilised in literature, namely: personal, institutional, material, immaterial, economic, social, core and not-core, basic and complementary, network, nucleus, and territory infrastructures. The final part deals with problems related to infrastructures measurement describing some financial-based measures and physical-based measures highlighting that both measures -due to economic and strictly computational problems -present pitfalls so that, in turn, both types of measures have critical aspects to be considered when interpreting results concerning infrastructures.

Financing of infrastructure maintenance in South Africa

2017

Importance of well-maintained infrastructure…………………………….3 1.12 Infrastructure & growth benefits to the economy…………………………6 1.13 Motivation of the study……………………………………………………8 1.14 Research questions………………………………………………………..13 1.15 Research objectives……………………………………………………….14 CHAPTER TWO: LITERATURE REVIEW…………………………………….15 2.1 The current state of repairs of existing infrastructure in South Africa.…….15 2.11 Power………………………………………………………………………18 2.12 Water and sanitation……………………………………………………….19 2.13 Transport…………………………………………………………………...20 I. Road infrastructure………………………………………………………20 II. Ports infrastructure………………………………………………………20 III. Rail infrastructure……………………………………………………….20 2.14 Maintenance funding requirements per sector……………………………..21 2.15 Power……………………………………………………………………….23 2.16 Water and sanitation………………………………………………………..23 2.17 Transport……………………………………………………………………24 i Roads…………………………………………………………………….24 ii Rail……………………………………………………………………….27 CHAPTER THREE: RESEARCH METHODOLOGY…………………………….28 v 3.1 Introduction……………………………………………………………………28 3.11Methodology…………………………………………………………………..28 3.12 Respondents selection…………………………………………………………28 3.13 Data Collection..………………………………………………………………29 3.14 Data Analysis..………………………………………………………………...29 CHAPTER FOUR: Data analysis and results discussion………………………………32 4.1 Introduction.………………………………………………………………………..32 4.11 Access to financial services & use of available funds ..…………………………32 4.12 Capability of infrastructure maintenance professionals.…………………………..33 4.13 Sources of additional maintenance funding………………………………………..35

Infrastructure Funding & Delivery: A KwaZulu-Natal Case Study

The funding of provincial infrastructure needs to change to ensure that the infrastructure necessary for South Africa and KwaZulu-Natal to compete globally is in place, and planned and improved over the short, medium and longer term. At present, infrastructure on a provincial level are primarily financed through the provincial fiscus. This means there is limited capacity for government to pay for infrastructure. This is acknowledged by the National Treasury that stated (2012 Budget Review) that South Africa's critical infrastructure needs are in part the outcome of two decades of underinvestment. Given South Africa's and KwaZulu-Natal's economic under-performance and massive social development needs, the national and provincial governments launched the National Development Plan and the Provincial Growth and Development Strategy. Both of these policy documents focus significantly on accelerating infrastructure delivery. Kessides (1993) work, which examines a wide range of evidence on the impacts of infrastructure on economic development, states that infrastructure contributes to economic growth, through both supply and demand channels, by reducing costs of production, contributing to the diversification of the economy and providing access to the application of modern technology, thus raising the economic returns to labour. The article, therefore, acknowledges that South Africa and KwaZulu-Natal suffers from an infrastructure deficit and that this deficit needs to be eradicated in order to support sustainable growth and reduce poverty. The limiting factor, especially from a provincial point of view, is the current funding model that is in place. This article will, therefore, focus on developing a number of hypothetical funding models (including utilising development finance institutions) that can potentially be used to accelerate infrastructure delivery on a provincial level. Emphasis will be placed on the costs and benefits of using the various models. The article will primarily employ a literature review and a comparative funding analysis approach.

Impacts of Public Infrastructure Investment in South Africa: A SAM and CGE-Based Analysis of the Public Economic Sector

2018

This paper assesses the general equilibrium impacts of public infrastructure investment in the South African economy by making use of complementary general equilibrium models, such as the social accounting matrix (SAM) multiplier, the Structural Path Analyses (SPA) and the Computable General Equilibrium (CGE) models. Both the SAM and CGE analyses indicate that increasing public economic infrastructure can be an effective way of stimulating the economy in a way that has a positive impact on labour. SPA shows that the main and most important path of influence is a direct influence of the public economic sector on each of the formal labour categories. However, because the public economic sector does not employ informal labour, this labour account is only connected indirectly via intermediate consumption of the construction sector output. This is an important outcome for South Africa, as the results suggest that an increase in public economic infrastructure could help address the proble...

Funding and Financing Mechanisms for Infrastructure Delivery: Multi-Sector Analysis of Benchmarking of South Africa Against Developed Countries

For developing countries to advance there is a need for more investment in infrastructure and improved decision-making (Organisation for Economic Cooperation and Development [1]. Governments around the world face significant capacity constraints both financial and technical in addressing the infrastructure needs [2]. Given the governments lack of resources, private sector investment has a pivotal role to play in bridging the infrastructure gap [2]. This paper presents comparative analysis of financing mechanisms for health, water, communications, transport and energy sectors in the Republic of South Africa and then benchmark against developed and developing countries. Successes and challenges of the funding and financing mechanisms are discussed. Furthermore, the researcher identifies financing opportunities for infrastructure delivery in South Africa and how such opportunities can be explored, taking into account political dynamics and legislative sector-based frameworks.