Investment in SA takes dramatic dive

The latest analysis of the country’s capital projects by Nedbank shows that capital investment in SA is on the decline.

Adding up all the capital investment in fixed infrastructure – as announced by the private and public sector for the foreseeable future – shows that it has decreased by a massive 30% compared to a year ago.

A note to the Nedbank Capital Expenditure Project Listing report for the first half of 2023 tells the whole story: “Fixed investment is spending on physical assets such buildings, infrastructure, plant, machinery and equipment, which adds to production capacity.”

The economy cannot grow without fixed investment.

The Nedbank survey aims to list all the capital projects announced by either the private or public sector, with the latest list showing a sharp fall in fixed investment activity in the first six months of the year.

“The value of new projects announced amounted to an annualised R173.1 billion, down from R248.5 billion and R392.7 billion recorded in 2022 and 2021, respectively,” according to the report.

Source: Moneyweb