Construction of infrastructure in South Africa is set to get funding of upto US$ 0.10trn in a bid to boost the country’s economy. The Member of Executive Council (MEC) for Environmental, Agricultural and Rural Development in South Africa, Lebogang Maile, recently noted the development.
MEC Maile noted that it is encouraging to see the construction sector grow not as a by-product of the mining industry. They are currently having mega projects in energy, information and Communication Technology, Rail, Hospitality and transport infrastructure.
Maile indicated that the middle class is estimated to increase to 107million by 2030 which means that there would be an increased emphasis on addressing the infrastructure deficit. Africa’s stand in the global construction industry investment would then grow rapidly.
According to a report by KPMG’s construction survey Africa, real estate investments in the region account for 43.8 percent of capital investment generating 33.6 percent of foreign direct investment jobs in the continent.
The report also indicates that Africa is ranked high when it comes to finding an investment destination for construction companies. About half of 165 global leaders in the construction and engineering industries surveyed in 2013 showing the desire to venture into the continent.
Maile further noted that the smaller companies located in Europe and Middle East with a turnover of less than US $0.37bn are the ones who are mostly investing meaning that they can see the dynamic link between their growth in Africa’s future.
Construction of infrastructure in South Africa is seen as a key move to boost the burgeoning economy in Africa.
Extract from constructionreviewonline.com, read the full article here: http://constructionreviewonline.com/2015/09/construction-of-infrastructure-in-south-africa-to-get-us-0-10trn-funding/