The President was fielding questions in the National Assembly on Thursday.
“Such spending is the equivalent of planting the seeds that will grow the economy. Our unwavering commitment to infrastructure development was strongly demonstrated during the recent Medium Term Budget Policy Statement, when the Minister of Finance announced that R948 billion will be spent on infrastructure over the next three years.
“This will certainly result in further job creation and stimulation of economic growth.”
ANC MP Pinky Kekana had asked how the Presidency, through the Presidential Infrastructure Co-ordinating Commission (PICC), intended to use infrastructure development to stimulate economic growth and create jobs.
The President said the increased investment in infrastructure in the country in recent years has served as an economic boost during the period when the economy was faced with enormous pressures.
He said when the commodity boom turned and mineral demand decreased a few years ago, it directly impacted on a number of mineral-exporting countries.
He said in South Africa, as a result of the additional infrastructure investment, the economy has maintained growth, albeit at modest levels, until this year.
“Earlier this year, the economy went into a technical recession but recovered in the last quarter. The direct impact of new infrastructure spend has been considerable. It has been estimated that the multiplier effect has been R268 billion in the economy and this is associated with more than 700 000 jobs that are sustained in the economy.”
He said the establishment of the PICC has yielded positive results and enables government to keep track of infrastructure spending and eliminate bottlenecks in the implementation of projects.
“The new market conditions have led to some State-owned companies reducing their new capital spending. This matter is now receiving attention, as we need to ensure that the combination of public and private sector spending on infrastructure is stepped up,” President Zuma said