McKinsey: Infrastructure is the way to grow SA's GDP
According to a recently released McKinsey Global Institute report entitled, "South Africa's Big Five: Bold priorities to unleash inclusive growth", if we focus on better infrastructure delivery we could boost the country's annual GDP by some R260 billion by 2030.
The McKinsey report said:
"The country could save up to R1.4 trillion over the next decade and boost annual GDP by R260 billion by 2030 if it invests these savings in additional infrastructure, creating 660 000 jobs."
South Africa already invests far more in infrastructure than many other economies. In fact, the country's infrastructure spend as a percentage of GDP is currently 4.9%. China leads the pack at 8.9%, followed by Saudi Arabia at 5.3%, and Vietnam at 5.1%. South Africa comes in fourth.