The World Bank has suggested a rule of thumb that physical infrastructure investment must be at least 6%-8% of GDP to support sustained rapid economic growth.
Infrastructure spend presents an opportunity as it potentially fosters aggregate economic output given its contribution, on its own, to GDP, not only as an enabler for trade but also to boost other sectors of the economy. The literature suggests that the government will need to accelerate and intensify efforts to mobilise domestic and external financing resources for infrastructure development. Prudency in attracting foreign direct investment to finance the required growth is key, particularly in SA.
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