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Citation Information

Type Journal Article - Development Southern Africa
Title Assessing the impact of Transnet's and Eskom's infrastructure investment programmes on the capital goods sector
Volume 26
Issue 03
Publication (Day/Month/Year) 2009
Page numbers 429-446
URL http://dx.doi.org/10.1080/03768350903086812
Transnet and Eskom have embarked on a R160.8 billion capital expenditure (capex) programme to improve South Africa’s logistics and energy infrastructure over the next 5 years. Although con- siderable backward linkages will be created in the process of procuring goods and services needed in the construction and operation of the planned projects, a significant portion of invest- ment will be lost because of having to import foreign skills and components that are unavailable locally. It has thus become a government priority to increase local content in the procurement process. Drawing on a series of interviews with leading suppliers involved in the capex programme, this article assesses the impact of such expenditure on the domestic capital goods sector and the constraints that militate against increased local participation.

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