ISAAH MHLANGA: SA is at risk of getting into an infrastructure paradox
The risk is rising of insufficient investment in projects even when there is high demand and adequate capital
The recent debate on SA’s economic policy proposals does not appear well co-ordinated and risks placing the country in what McKinsey has described as an infrastructure paradox. This is a condition when there is insufficient investment in infrastructure projects even when there is high demand for projects, adequate supply of capital, high appetite for alternative assets by investors and a large number of projects.
This risk is rising because policymakers are failing to make hard trade-offs, a point loudly made by none other than the governor of the SA Reserve Bank, Lesetja Kganyago, in a recent Twitter Spaces conversation hosted by former Business Day editor Songezo Zibi...