Infrastructure spending trends

2. Infrastructure spending trends

3. The potential impact on growth Labour multipliers for the construction sector GDP multipliers for the construction sector Direct 0.23 Direct 3.5 Total 1.21 Total 8.8 Induced 0.46 Induced 2.0 Indirect 0.52 Indirect 3.3

4. Current levels of underspending Actual infrastructure expenditure as a % of budgeted, 2012/13 Source: National Treasury Budget Review (2014)

5. Impact of underspending Infrastructure spending 2013/14 R847 billion over 3 years Assuming a 50% import component Total local spending of approximately R400 billion 840 000 R30.1 billion 720 000 R26.1 billion Additional income into the economy Additional income into the economy Average number of Temporary jobs created over 3 year period Average number of Temporary jobs created over 3 year period Actual spending Budgeted spending Actual spending Budgeted spending GDP Impact Employment Impact

6. How are we doing i.t.o. infrastructure? Overall ranking 53 Inadequately educated workforce This little island is beating us Restrictive labour regulations Inefficient government bureaucracy Health and education 135 Higher education 95 Labour market 116 Innovation 39 Financial markets 3 Institutions 41 Economy 95 Infrastructure 66

7. How are we doing i.t.o. infrastructure? Infrastructure 66 The Global Competitiveness Report (2013-2014)