Evaluating the Effectiveness of Investment in Boosting South Africa’s Economic Growth: A Comparative Analysis across Different Administrations

Dikeledi Semenya and Kanayo Ogujiuba ()
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Dikeledi Semenya: School of Development Studies, University of Mpumalanga, Mbombela 1200, South Africa
Kanayo Ogujiuba: School of Development Studies, University of Mpumalanga, Mbombela 1200, South Africa

Administrative Sciences, 2024, vol. 14, issue 8, 1-20

Abstract: South Africa’s economic growth has been slow since the 1980s due to inefficiencies in the manufacturing, mining and quarrying, ICT, electricity, gas, and water sectors. This article uses the theoretical framework and growth rates to identify key reasons for this slowdown. Key issues include inefficiencies within the gross fixed capital formation (GFCF) and inadequate infrastructure, primarily due to government behavior. This article used secondary data to perform the desktop analysis. To promote economic growth, the South African government and allied stakeholders should consider increasing investments in public infrastructure and financing research and development. This article argues that economic growth is driven by government expenditure, easy access to financing, and technological advancements. To promote economic growth, a comprehensive approach is needed, including tax breaks, loan guarantees, and pro-business legislation.

Keywords: economic growth; gross fixed capital formation; investment (search for similar items in EconPapers)
JEL-codes: L M M0 M1 M10 M11 M12 M14 M15 M16 (search for similar items in EconPapers)
Date: 2024
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