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BLSA’s Mavuso believes increased infrastructure investment could reduce record unemployment

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The BLSA CEO believes that there needs to be urgency in the momentum of reforms, especially investment in infrastructure development and maintenance, in order to address the unemployment crisis.

Business Leadership South Africa (BLSA) CEO, Busi Mavuso believes that record unemployment in South Africa will only become worse if the country cannot unlock the infrastructure promise. This was relayed in a piece published on Monday, 30 August 2021. She pointed out that the country needs to maintain momentum on the path to reforms, in particular, increased infrastructure expenditure.

Mavuso noted that in order to meet the National Development Plan target for spending 30 percent of gross domestic product (GDP) on infrastructure development, South Africa needs to invest an average of R4.1 billion a day, compared to the R1.6 billion currently being spent. She further stated that of the R1.6 billion, expenditure on infrastructure is below comparable emerging market nations and below the global average of 18.2%.

Mavuso also emphasised that the measures that the state has undertaken to safeguard the economy are in desperate need of urgent review, as the increasing unemployment rate eats away at the little confidence that is in the system. She also stressed that with more than a decade since the last infrastructure-led boom, that being the 2010 FIFA World Cup, regulatory rigidities will arise in the way of developing, maintaining and investing in infrastructure, so partnership between public and private sectors is necessary.

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