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We take a look at the South African government's estimated and planned infrastructure spending over the next three years as well as break it down per category. So what exactly is government planning on spending its infrastructure money on? And what percentage of South Africa's government spending is allocated towards infrastructure upkeep and development?
New schools? Fixing ESKOM's failing plants? New and improved roads? Better hospitals? New water and surrage cleaning plants? We take a look below. |
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Infrastructure spending per year per category
While most readers would expect infrastructure spending on Energy to be the biggest infrastructure spending category, it is handsomely beaten by planned infrastructure spending on Transport and Logistics. Sadly for users of national roads, don't expect a lot of this money to be spent on maintaining our roads and fixing our potholes. The bulk of the money to be spent on transport and logistics is earmarked for Passenger Rail Agency of South Africa (PRASA) to be spent on rolling stock and fleet renewal and a general overhaul of metro rail coaches.
A massive water and sanitation project in Limpopo makes up a big part of the water and sanitation spending in the last 3 years. Total planned spending on infrastructure projects over the next three years are shown below:
Comparing these numbers to the overall planned expenditure of government we find that spending on infrastructure makes up around 16% of government's planned spending over the next three years. The summary below shows the percentage infrastructure spending makes up of South Africa's total budget for the next three years.
Lets break down the planned infrastructure spending by government type, such as national, provincial SOE's etc. The summary shows the planned infrastructure spending per government type:
The difference between public entities and state owned companies is the fact that SOE's receive funding from the state as well as generate their own revenues, while public entities only survive on capital transfers from government.
Basically the bulk of government's infrastructure spending is spent by SOE's and of the SOE's, PRASA will be spending the bulk of the SOE's infrastructure spending on fleet updates and renewals and revamping its current fleet.
- 2019/2020: R276.1 billion
- 2020/2021: R283.8 billion
- 2021/2022: R305.1 billion
Comparing these numbers to the overall planned expenditure of government we find that spending on infrastructure makes up around 16% of government's planned spending over the next three years. The summary below shows the percentage infrastructure spending makes up of South Africa's total budget for the next three years.
- 2019/2020: 16.6%
- 2020/2021: 16%
- 2021/2022: 16.1%
Lets break down the planned infrastructure spending by government type, such as national, provincial SOE's etc. The summary shows the planned infrastructure spending per government type:
- National departments: R16.0 billion (5.8%)
- Provincial departments: R60.7 billion (22.0%)
- Local government : R66.7 billion (24.1%)
- Public entities: R20.8 billion (7.5%)
- Public-private partnerships : R6.1 billion (2.2%)
- State-owned companies: R105.8 billion (38.3%)
The difference between public entities and state owned companies is the fact that SOE's receive funding from the state as well as generate their own revenues, while public entities only survive on capital transfers from government.
Basically the bulk of government's infrastructure spending is spent by SOE's and of the SOE's, PRASA will be spending the bulk of the SOE's infrastructure spending on fleet updates and renewals and revamping its current fleet.