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We take a look at the capital expenditure of public corporations such as ESKOM, Transnet, SAA, Denel and other public corporation for the year ending 2015 and comparing such expenditure to 2014. For those who do not know what capital expenditure is, it is money spent on acquiring, upgrading, improving or maintaining a company/organisations physical assets.
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So who's the big spending public corporations?
Well the usual suspects such as ESKOM, Transnet, SANRAL, PRASA are all there, but there are a few surprises when looking at total capital expenditure for public corporations and then ranking them from largest to smallest spenders in 2015. The bar chart below shows the top 15 public corporations in terms of capital expenditure for 2015.
ESKOM on it's own maked up 48.6% of total capital expenditure by public corporations in 2015, although it has to be noted that their capex was lower by R1.9billion from 2014 to 2015. Transnet made up 24.9% of total capital expenditure by public corporations, just over half of what was spent by ESKOM. However Transnet's capex increased by roughly R2.9billion in 2015 when compared to 2014.
In a distant third place is SANRAL, whose capital expenditure made up 6.2% of total capital expenditure by public corporations in 2015. Their capex increasing by R645million (on wonders how much of that is money wasted on grossly ineffective E-toll system in Gauteng?). PetroSA and PRASA completing the top 5. In total the capital expenditure of the top 5 mentioned above made up 87.4% of total capital expenditure by public corporations.
The interesting one to make the list is the Komati Basin Water Authority. With zero capital expenditure in 2014, it recorded capital expenditure in 2015 of R1.15billion in 2015. Another interesting one from the list is the SABC, who's capital expenditure increased by 43% from 2014 to 2015. We wonder if Mr Motsoneng has anything to do with this? And the last interesting one is South African Reserve Bank (SARB), who's capital expenditure increased by 73% from 2014 to 2015, or by R176million from R240million to R416million.
Total Capital Expenditure by public corporations amounted to R143.89billion in 2014, and this increased by 1.82% in 2015 to an amount of R146.5billion in 2015. A true sign of tough economic times is clear for all to see when the usual lavish spending public corporations are moderating their capital expenditure plans. Showing they might not be as optimistic about the future benefits of big capital expenditure projects being undertaken now.
The interesting one to make the list is the Komati Basin Water Authority. With zero capital expenditure in 2014, it recorded capital expenditure in 2015 of R1.15billion in 2015. Another interesting one from the list is the SABC, who's capital expenditure increased by 43% from 2014 to 2015. We wonder if Mr Motsoneng has anything to do with this? And the last interesting one is South African Reserve Bank (SARB), who's capital expenditure increased by 73% from 2014 to 2015, or by R176million from R240million to R416million.
Total Capital Expenditure by public corporations amounted to R143.89billion in 2014, and this increased by 1.82% in 2015 to an amount of R146.5billion in 2015. A true sign of tough economic times is clear for all to see when the usual lavish spending public corporations are moderating their capital expenditure plans. Showing they might not be as optimistic about the future benefits of big capital expenditure projects being undertaken now.