Abstract
M.Tech. (Construction Management)
Infrastructure development is the most important focus area of any country in the world, since effective infrastructure development will boost the economy of both developing and developed country. Financing infrastructure is a most important role which the government and the private sector must play in order to achieve economic growth in Africa. This study assesses the current sources of infrastructure financing, sources of transportation infrastructure financing and the challenges facing infrastructure financing in the Gauteng Province of South Africa. Additionally, the roles of taxation and infrastructure development regarding economic growth are also assessed. Primary data was obtained through a questionnaire which was sent out to construction professionals. A total of 130 (one hundred thirty) questionnaires were sent out and 100 were received back, representing a 76.92 % response rate. The findings indicated that infrastructure finance companies, sales of public property and banking financing were the major sources of infrastructure financing in Gauteng Province. In addition, foreign institutional investment, banking financing and public-private partnerships were the major sources of transportation infrastructure financing in Gauteng Province. Furthermore, the findings showed that political interference, lack of funding and cost overruns were the major challenges facing infrastructure financing in Gauteng Province. Steady national revenue enabling a country to reach its economic development goals and raising income to fund public infrastructure were determined to be the major roles of taxation on economic development. Finally, the study showed that infrastructure development provides employment opportunities, ensures the effective functioning of the economy and provides physical and social infrastructure to the poor: these were the major roles of infrastructure development in terms of economic growth in the Gauteng Province of South Africa. It is suggested that, in order to achieve economic growth and steady national revenue, government should attract more investors to invest in infrastructure by providing reasonable returns on their investment.