STUART THEOBALD: Policy digs us into a hole instead of helping SA mine private investment

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If an enabling approach to mining was pursued, we could see change in fixed capital formation

We do a lot of talking about infrastructure investment, but less and less is actually happening. We spent 14% of GDP on gross fixed capital formation in the second quarter, a number made worse by the rebasing of GDP by Stats SA in August.

When broken down, it is clear that both private and public sectors are investing less. Public sector investment was just 3.9% of GDP while the private sector invested 10.1% of GDP. These figures have steadily declined since late 2008 when as a country we hit a democratic-era record 21% of GDP, 14.1% from the private sector and 6.8% from the public sector ...

 

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Great article

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