BuaNews (Tshwane)
Michael Appel
20 November 2008
Johannesburg — South Africa is a capable facilitator of economic growth and government has proven its commitment to expanding and increasing infrastructure spending in the country, says Provincial and Local Government Minister, Sicelo Shiceka.
Speaking at the Annual Support Programme for Accelerated Infrastructure Development (SPAID) conference on Thursday, the minister said with the introduction of the Accelerated and Shared Growth Initiative for South Africa (AsgiSA), government has committed to expanded and increased investment in economic infrastructure such as electricity generation, transport and water management.
AsgiSA aims to halve unemployment and poverty by 2014 and achieve a 6 percent annual economic growth by 2010.
"The benefits of infrastructure delivery are widely acknowledged. Transaction costs are reduced, economic linkages and activity is stimulated, economies are fortified against change and the creation of wealth becomes possible."
The minister highlighted that South Africa has a clearly defined plan for investment in infrastructure, involving massive investment from the public sector, strategic and resource inputs from the private sector and the efforts of all South Africans.
According to the minister, his department is at the forefront of mobilising provinces and municipalities to engage in the implementation of infrastructure programmes and is therefore well placed to identify challenges that obstruct progress.
"We embrace this role that allows us to provide strategic interventions where required to support and create partnerships that facilitate implementation.
"At the same time we are committed to the communities that we serve, to find appropriate mechanism for their participation in governance and to support service delivery so as to provide them with services lacking," Mr Shiceka said.
In order to achieve the goals envisioned by AsgiSA, there needs to be proper alignment of planning processes as this is a vital tool in the acceleration of delivery of services.
The maintenance of infrastructure assets is also a key component of sustainability, and where this aspect is not prioritised, the best interests of the communities is not being served, Mr Shiceka said.
One of the most recognised obstacles to economic growth and infrastructure development is that of South Africa's technical capacity challenge.
"The shortage of critical skills in engineering and project management are as acute in the private sector as the public sector, and it is an item of much debate at every sector to attempt to find creative ways of addressing this challenge," he said.
South Africa's diminishing infrastructure was highlighted when an energy crisis hit the country earlier this year. The supply of electricity, in particular, is critical to ensure support to capital investment projects in all sectors and to ensure financial stability.
At both national and global levels, the food crisis, challenges of climate change and bioenergy, unacceptably high levels of crime and unemployment all put pressure on and negatively impact infrastructure delivery.
His department is tasked with delivering 51 percent of the planned infrastructure investment committed by government, "but the record of expenditure is weak and the capacity and ability to increase activity in often limited, particularly in smaller municipalities".
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