Drivers of South African transport and transport infrastructure

Abstract

There is no doubt that infrastructure in general and specifically transport infrastructure plays a major role in economic development (Weisbrod G 1997, Chapman P et al 2002) as well as in social development (UNCDF 2007). In addition, construction activities form a significant part of a country’s GDP in South Africa the construction industry contributes 3,6% to the GDP (STATS SA 2008) and has been growing three times as fast as the total South African economy over the past five years. Currently there is a decline in the rate of growth, mainly in the residential building sector, due to the crisis related to declining asset values in the USA (the sub-prime problem), inflation and relatively high interest rates. Economists are, however, of the opinion that this is a short- to medium-term phenomenon that will correct 2010 (Rust et al. 2008).