Construction: Hostage to poor planning
The many factors conspiring against infrastructure spending do not bode well for SA’s listed construction players
Murray & Roberts’s decision to exit SA infrastructure and building markets has shown up large cracks in the economy. It comes despite government plans to spend R4trillion on 18 categories of strategic infrastructure projects over 15 years, of which hundreds of billions have already been spent. The exit excludes the company’s shareholding in Gautrain operating companies that, according to Murray & Roberts CEO Henry Laas, are still in "fierce" litigation with the Gauteng provincial government. It also excludes projects being wound up in the Middle East, where no new business will be pursued. The decision by one of SA’s top construction and engineering groups may provide a significant opportunity for black economic empowerment. But what it really shows is that civil infrastructure development, such as in the mining and steel industries, is being held hostage by poor government industrial policy design and implementation, amid the fury and chaos of national politics. The infrastructure ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.