SA infrastructure market 'promising'
12 October 2009
South Africa is tipped to see a real growth rate of 12.77 per cent for 2009's fourth quarter, according to a report from consultant Companies and Markets.
A vast investment in transport infrastructure and large-scale power plants is partly behind the positive numbers for the country's booming construction industry.
South Africa has also been boosted by World Cup preparations with its subsequent building of new airports and railways.
Additionally, Eskom's burgeoning energy infrastructure developments have contributed to growth.
Two of these projects are the Medupi and Kusile power plants, which are expected to generate 4,800 megawatts and provide 0.34 per cent each to GDP growth each once completed.
Another factor influencing economic promise is Transnet's $5 billion (£3.1 billion) five-year transport investment plan, which will focus on upgrading ports and freight railways.
In related news, a Business Day editorial has recently called on Eskom to play a leading role in making solar power a viable element of the energy industry on the continent.