© [year] [legal member firm name], a [jurisdiction] [legal structure] and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. 3 Infrastructure spending trends
© [year] [legal member firm name], a [jurisdiction] [legal structure] and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. 4 GDP multipliers for the construction sector Direct 0.23 Indirect 0.52 Induced 0.46 Total 1.21 Labour multipliers for the construction sector Direct 3.5 Indirect 3.3 Induced 2.0 Total 8.8 The potential impact on growth
© [year] [legal member firm name], a [jurisdiction] [legal structure] and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. 5 Actual infrastructure expenditure as a % of budgeted, 2012/13 Source: National Treasury Budget Review (2014) Current levels of underspending
© [year] [legal member firm name], a [jurisdiction] [legal structure] and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. 6 Actual spending Impact of underspending Employment Impact GDP Impact Budgeted spendingActual spending Budgeted spendin g Infrastructure spending 2013/14 R847 billion over 3 years Assuming a 50% import component Total local spending of approximately R400 billion R26.1 billion R30.1 billion Additional income into the economy Average number of Temporary jobs created over 3 year period
© [year] [legal member firm name], a [jurisdiction] [legal structure] and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. 7 Institutions 41 Infrastructure 66 Economy 95 This little island is beating us Health and education 135 Higher education 95 Labour market 116 Financial markets 3 Innovation 39 Overall ranking 53 Inadequately educated workforce Restrictive labour regulations Inefficient government bureaucracy How are we doing i.t.o. infrastructure?
© [year] [legal member firm name], a [jurisdiction] [legal structure] and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. 8 How are we doing i.t.o. infrastructure? Infrastructure 66 The Global Competitiveness Report ( )
What are we planning to spend? Lullu Krugel lullu.kpmg.co.za