This dialogue provides the platform to understand the approach adopted by the Presidency in respect of the Performance, Monitoring and Evaluation programme and explores the intention and implications of Outcome 6.

Economic infrastructure comprises the internal facilities of a country that makes it possible to do business and includes communication, transportation, distribution networks, financial institutions and markets and energy supply systems. Perkins, Fedderke and Lutz contend that the ‘relationship between an economy and its economic infrastructure is analogous to that between a building and its foundation. Economic infrastructure typically exists not for its own sake but rather to support various kinds of economic activity’ . Through research undertaken in 2005 they determined three main findings with regard to economic infrastructure and economic growth in South Africa: Firstly, the relationship between economic infrastructure and economic growth appears to run in both directions. Economic growth provides both the need for, and the resources to fund, various types of infrastructure. Alternatively, the failure to provide appropriate infrastructure services may hamper GDP growth. Secondly, providing the right type of infrastructure at the right time will be an important dimension of South Africa’s continued economic development. Thirdly, the need for investment in economic infrastructure never goes away. Until such time as existing infrastructure becomes obsolete it needs to be maintained, and as certain infrastructure programmes reach maturity new ones should be implemented, always in response to the economy’s changing needs and cost-benefit analyses. (South African Journal of Economics Vol. 73:2 June 2005)

The link between economic infrastructure and economic growth has been recognised by the South African Government. Over the last ten years Government has made significant and increasing investments into infrastructure development. The investment into infrastructure was one of the cornerstones of the Accelerated and Shared Growth Initiative for South Africa (AsgiSA) which resulted in over R320bn of public expenditure being used for this purpose since 2006. Government’s current economic strategy the New Growth Plan (2010) sees public investment in infrastructure as being a key ‘job driver’ both to create employment directly, in construction, operation and maintenance as well as the production of inputs, and indirectly by improving efficiency across the economy.

In accordance with this policy position, infrastructure investment is one of the 12 delivery outcomes that forms part of the Presidency’s Performance, Management, Monitoring and Evaluation programme. This programme is approved by Cabinet and comprises a new outcomes-based approach to defining targets and measuring progress of National Ministers and Departments. Twelve outcomes have been agreed as a key focus of work between now and 2014. Each outcome has a limited number of measurable high-impact priority outputs and sub-outputs with targets. In turn, each output is linked to a set of activities that will help achieve the targets and contribute to the outcome. Each of the 12 outcomes has a delivery agreement which in most cases involve all spheres of government and a range of partners outside government. Combined, these agreements reflect government’s delivery and implementation plans and its central priorities.  Outcome 6 is focused on infrastructure investment with the aim of creating ‘An efficient, competitive and responsive economic infrastructure network’. There are six outputs:

1) Improving competition and regulation
2) Ensuring reliable generation, distribution and transmission of electricity
3) Ensuring the maintenance and strategic expansion of South Africa’s road and rail network, and operational efficiency, capacity and competitiveness of South Africa’s sea ports.
4) Maintenance and supply availability of South Africa’s bulk water infrastructure
5) Communication and information technology
6) Developing a set of operational indicators for each segment

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