Infrastructure spending stalls in SA

Investment in South Africa’s
infrastructure has stalled,
while countries in the rest
of Africa are beginning to
rebuild their logistics and
other systems, according to
construction group Aveng
CEO Roger Jardine.
Presenting the group’s
annual results in Gauteng
recently, he said one of the
challenges facing the group
was the “slow speed of
infrastructure spend in South
Africa.”
This despite South African
ministers saying in February
that R1 trillion needed to be
invested over the next four
years in order to modernise
the country’s infrastructure –
and that it could no longer be
delayed.
However, according to the
National Planning Commission
of SA, public sector
infrastructure spending has
declined by 30% since 2008.
Aveng, according to
Jardine, is now looking to
“significant opportunities in
Africa,” with a focus on rail.
The company would
“strengthen and expand” its
rail products and services
in Africa, Australia and the
Middle East.
Local opportunities include
“continued maintenance work
on Transnet Freight Rail’s
(TFR) network”.
The company is not,
however, banking on the
South African government
making the necessary
infrastructural investments
over the next two years.
“We anticipate a larger
contribution to group profit
from our Australasian
operations while we experience
limited public infrastructure
spend in South Africa,” he said.