The private sector is continuing to sport the lion’s share of capital investment in South Africa, increasing its spending on infrastructure, software, research and development investments.This is according to Chief Economist at Investec, Annabel Bishop, who said that “the private sector continues to drive capital investment in South Africa, contributing over 70% to growth in fixed investment.”
This is opposed to Reserve Bank, which data shows that South Africa’s SOEs, in contrast, reduced their expenditure on fixed investment by 1.7% y/y in 2023.“Fixed investment remains key to economic growth outcomes,” as it provides many of the structural and productive factors necessary for growth, said Bishop.
This is an increase from the R312 billion recorded during the previous five years, a period largely under the presidency of Jacob Zuma, which the DTIC says was as a result of muddied relationships with the private sector and government during the height of state capture., which outlined that the South Africa Investment Conference surpassed the initial R1.2 trillion target to reach R1.51 trillion in investment pledges.