Abstract
This study examines the contribution of transport infrastructure investments towards the economic transformation in Gauteng Province, particularly in its three main cities (Ekurhuleni, Johannesburg and Tshwane). The impact of COVID-19 resulted in the loss of job opportunities for many people in various sectors of the national economy. With the nationwide unemployment currently at 34.4%, the investment in transport infrastructure can facilitate the recovery of the South African economy, by creating employment opportunities, skill development, small, medium and micro-enterprises (SMME) and thereby drive industrialisation through the improvement in manufacturing.
The main objective of this study was mainly to explore and analyse the contribution of transport infrastructure investments towards economic transformation in Gauteng Province.
The study relied on the economic development theory such as neoclassical economic theory; endogenous growth theory and new economic geography in analysing the contribution of the transport infrastructure towards the economic transformation.
The research design for this study is a qualitative, exploratory, and descriptive case study. Respondents in the study were invited based on their first-hand experience in the study areas. The research sample comprised three transport planners or IPTN planners for Topic 1; ten contractor and sub-contractor SMMEs participated in three focus group interviews (Topic 2); an executive from bus manufacturing who supplies buses for IPTN projects (Topic 3); and lastly, three representatives from the transformed taxi industry VOCs (Topic 4).
The findings from the study reveal that investment in transport infrastructure projects (IPTNs) is very instrumental in creating job opportunities, particularly for low or semi-skilled workers, and it contributes to poverty reduction. They also indicate that the main beneficiaries of IPTNs are workers, SMMEs, bus manufacturing companies, suppliers, and mini-bus taxi operators. However, the existence of business forums and construction mafia, poor spending by cities, and lack of skills in the mini-bus taxi industry are some of
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the factors that derail the impact of the investment in transport infrastructure towards economic transformation.
Lastly, the study provided the following recommendations for further research, firstly, the case of the successful VOCs should be undertaken; secondly, clarity of policies relating to 12 year contracts for VOCs, and the 30% value of a project, should be investigated; thirdly, investigation into other manufacturing opportunities besides that of buses (steel, cement and, etc) should be examined and lastly, skills development initiatives should be implemented in all areas in order to attain meaningful economic transformation.
Key words. Transport infrastructure; IPTNs, SMME; VOCs, skills development; bus manufacture