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Infrastructure in South Africa: Who is to finance and who is to pay?

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  • Estian Calitz
  • Johan Fourie

Abstract

Against the backdrop of shifting views on the role of government in the provision of infrastructure, this paper distinguishes between the payment for and financing of the South African Government's infrastructure investment programme. The paper argues for a clear distinction between loan financing by the government for macroeconomic considerations and the benchmark approach to the financing of infrastructural projects. It presents a classification system that enables a systematic mapping of all prospective projects, with reference to considerations of efficiency and equity, and uses this system to question the government's financing strategy and identify alternatives. The Gautrain Rapid Rail project is used as a case study to demonstrate these alternatives.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/03768351003740449
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Development Southern Africa.

Volume (Year): 27 (2010)
Issue (Month): 2 ()
Pages: 177-191

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Handle: RePEc:taf:deveza:v:27:y:2010:i:2:p:177-191

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Related research

Keywords: infrastructure financing; government loans; benefit taxation; guarantees; private-public partnerships; Gautrain; South Africa;

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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Four lessons from railways in Ghana
    by Johan Fourie in Johan Fourie's Blog on 2012-11-27 19:29:39
  2. High-speed rail in South Africa: too costly to consider
    by Johan Fourie in Johan Fourie's Blog on 2013-06-02 07:57:55
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Cited by:
  1. Ba, Lika & Gasmi, Farid, 2011. "To what extent do infrastructure and financial sectors reforms interplay? Evidence from panel data on the power sector in developing countries," TSE Working Papers 11-264, Toulouse School of Economics (TSE).
  2. Ba, Lika & Gasmi, Farid, 2011. "To what extent do infrastructure and financial sectors reforms interplay? Evidence from panel data on the power sector in developing countries," IDEI Working Papers 692, Institut d'Économie Industrielle (IDEI), Toulouse.

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