Public Infrastructure Investments in South Africa: a Rational Growth Strategy?

South Africa’s economic growth has been inadequate to generate enough jobs to reduce unemployment. The government believes infrastructure investment is one of the key factors to achieve a more “labour-absorbing” growth path as outline in the 2010 New Growth Path, 2011 National Development Plan and the 2012/2013 National Budget. As a result, public infrastructure expenditure, which was scaled up from around 2005, continues to be a priority in government policies. With support from PEP, a South Africa-based research team set out to analyze the short and long term impacts of public infrastructure investments on growth and employment in the country.