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REVIEW: South Africa urgently needs to prioritise upholding the rule of law.

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The perilous working conditions in South Africa's construction industry, plagued by the construction mafia, were brought to light when a Stefanutti Stocks executive narrowly escaped an attempted murder. Last week's news about Stefanutti Stocks coastal manager Matthew Horwill's survival of an assassination attempt near his office sparked widespread speculation. Many believe the attack is linked to the construction mafia, a notorious organization that has been very active in KwaZulu-Natal.  The construction mafia often target construction sites, extorting money from contractors, subcontractors, and developers. Although they have been a part of the South African construction landscape for some time, the government has finally taken action to address this long-standing issue through strategic initiatives. The Public Procurement Bill, currently open for public comment, tackles several concerns. It mandates a certain percentage of local participation and requires organizations to
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COMMENTARY : SA not investing enough in innovation on infrastructure development

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Underinvestment in R&D in South Africa's infrastructure sector has hindered the development of innovation capacity, leading to missed opportunities.


According to Siseko Maposa South Africa faces challenges in developing innovative solutions for its infrastructure and construction industry, and in addressing questions about what and how to build. One indicator is the lack of prioritization of financing for innovation.

Innovation plays a crucial role in supporting critical growth properties. Public and private sector players need to support and fund research and development (R&D) initiatives to enhance innovation capacity.

There is a strong academic consensus on the positive effects of increased R&D expenditure on infrastructural development. These include better project conceptualization, development, implementation, and management, the creation of cost-efficient materials, identification of technological advancements in construction processes, and the development of efficient methods, tools, and equipment.

The positive impacts of R&D expenditure on infrastructure development are well-documented. For example, in China, which spent 2.3% of its GDP on R&D in 2020, government-initiated R&D subsidies for corporate companies led to technological upgrading, capital deepening, and economic growth in the infrastructure industry.

Improvements in finance for innovation will support South Africa's need for future-proofing infrastructure to generate climate resilience. The country's critical infrastructure, such as water, bridges, roads, and rail, shows low levels of climate resilience, making many parts susceptible to failure during natural disasters.

Financing for innovation can also drive sectoral development by generating disruptive technologies that increase competitiveness and force companies to improve their processes. This is crucial for South Africa, considering the current state of companies operating in the sector. Small, medium, and micro enterprises (SMMEs) conduct a significant majority of activities in South Africa's built environment and generate up to 80% of jobs in the sector.

This commentary was written by Siseko Maposa who is  the director of Surgetower Associates, the full article can be read on IOL, follow our WhatsApp channel here for more hardhatCOMMENTARIES.

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