New shock figures from a construction giant show govt spending on SA roads has fallen off a cliff
Helena Wasserman, Business Insider SA
A massive pothole behind Campus Square in Auckland Park in 2009, allegedly caused by rain. (Gallo Images)
One of SA's biggest road builders, Raubex, released its annual results on Monday morning.
Its work orders from Sanral and provincial governments halved in the past year.
Judging from the latest financial results from one of South Africa’s biggest roadbuilders, investment in SA roads has fallen off a cliff.
The 44-year old road construction group Raubex has seen work from South African National Roads Agency (Sanral) and provincial governments halve in the past year, as government curbs investment spending. Government has committed to reduce its spending by R85 billion in the next three years as its ballooning budget deficit unnerved global rating agencies. In its February budget, it cut the money available to Sanral.
Raubex said in its results for the year to end February, released on Monday morning, that there has been a “lack of tenders” by Sanral. Infrastructure orders from Sanral slumped by 47% to R962 million. Infrastructure work from provinces fell by almost 54% and from municipalities by 11%.
“It is imperative that South African state-owned companies, including Sanral, as well as provincial and municipal governments, start investing in the country's deteriorating infrastructure. This will not only alleviate the current pressure in the construction sector, which has experienced a number of business failures resulting in severe job losses during the year, but will also better position the country for future economic growth,” Raubex said in its results.