(AsgiSA) Annual Report 2008 - South African Government Information
(AsgiSA) Annual Report 2008 - South African Government Information
(AsgiSA) Annual Report 2008 - South African Government Information
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Accelerated and Shared Growth Initiative for <strong>South</strong> Africa<br />
ANNUAL REPORT<br />
<strong>2008</strong><br />
5. Infrastructure investment<br />
5.1 Background<br />
The <strong>AsgiSA</strong> programme relating to infrastructure has been effective since 2006 and aims to<br />
accelerate the achievement of national targets for the eradication of the remaining backlogs<br />
in sanitation (bucket system in formal settlements) by <strong>2008</strong>, access to potable water by<br />
2014, access to sanitation by 2011, universal access to electricity by 2013 and all other backlogs<br />
in basic service delivery, including housing, by 2014.<br />
The approach taken by The Presidency to achieve this, has been to draw attention to specific<br />
infrastructure deficiencies, and provide support for priority infrastructure initiatives by the<br />
respective infrastructure line departments and other spheres of government. <strong>AsgiSA</strong> infrastructure<br />
interventions have been both specific and cross-cutting and supportive of existing<br />
mainstream government programmes.<br />
The ratio of gross fixed capital formation (GFCF) to GDP rose from 17,5% at the start of 2006<br />
to 21,5% in the first quarter of <strong>2008</strong> 1 , reflecting a steady and relentless approach towards<br />
government’s target of 25%.<br />
Figure 1: Gross fixed capital formation<br />
Source: SARB<br />
Even though some two thirds of total fixed investment is made by private corporations,<br />
private-sector investment growth has lagged the growth in public-sector investment. From<br />
2006, the growth rates of investment by public corporations accelerated, outstripping<br />
private-sector fixed capital formation growth rates.<br />
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