'SA must plan for infrastructure expansion beyond 2010'

AS SA’S infrastructure development continues to focus on 2010 and all the associated infrastructure improvements around the Word Cup, the soccer preparations are only a small fraction of a much greater overall infrastructure ambition, says FNB chief economist Cees Bruggemans. “Indeed, besides getting to the soccer on time, the main aim of recent years and the next few years is a doubling of the construction sector as a share of GDP so that it will be able to supply for decades to come the future infrastructure needed to sustain GDP growth rates of at least 5-6% as currently projected,” says Bruggemans. He believes that much greater economic development effort beyond the soccer cup hosting demands that power, port, rail, road and communication networks be expanded in line with the needs of our fastgrowing economy, with the very long term in mind. “Delays here won’t stop growth, but will for a time require adaptability to shortages and congestion, as already experienced for some years now.” The central questions about fixed investment as a facilitator of longterm economic growth are whether it can rise to a higher level of GDP and whether our construction sector can double in size within a reasonable span of time to make it all possible.