SA under pressure to invest trillions in infrastructure development
This article of the Timeslive outlines the challenges South Africa face. This Challenge brings ample opportunity to develop sustainable business and also to improve and develop our beautiful country.
South Africa needs to invest $464 billion (R6 trillion) by 2040 in the water and electricity sectors to plug its infrastructure investment gap and address economic and population growth between now and 2040.
This was revealed in a G20 Global Infrastructure Hub (GI Hub) report‚ covering infrastructure investment needs globally and individually for 50 countries and seven sectors.
This means that the country has to fast-track its efforts to create a conducive environment to attract investment‚ otherwise it will not be able to meet its United Nations Sustainable Development Goals (SDGs).
Between now and 2040‚ the country’s Gross Domestic Product is predicted to increase by 40% as its population increases by only 16%.
According to the Global Infrastructure Outlook report‚ the cost of providing infrastructure to support world economic growth would be $97 trillion.
It points out that $18 trillion‚ almost 19%‚ will be unfunded if current spending trends continue.
The report warns that this is not only a major challenge for emerging countries that need to create new infrastructure‚ but also for advanced countries that have ageing systems that need to be replaced.
GI Hub chief executive Chris Heathcote said: “Outlook is a comprehensive and detailed analysis of infrastructure investment need. It gives the new country and sector spending data that governments and funding organisations have been calling for.
“It tells us three key things‚ how much each country needs to spend on infrastructure to 2040‚ where that need is for each infrastructure sector‚ and what their gap is‚ based on their current spending trends.’’
Roodt said the government did not necessarily have to invest more in infrastructure but had to bring the private sector on board.
South Africa is forecast to meet 66% of its infrastructure investment needs by 2040.
Already‚ meeting the SDGs for electricity and clean water provision globally‚ which is part of the infrastructure needs‚ will require $3.5 trillion more to close the gaps.