This has probably been meaningfully supported by the announced increases in parastatal capital expenditure. The surge in business investment is also expected to translate into higher export volumes. A number of new projects in the mining of iron ore and gold have been identified and should commence in the medium term.
Vehicle manufacturers are in the process of expanding capacity and cement companies have also been expanding their capacity in order to meet the construction sector’s demand for cement. Capital formation in the construction and commerce sectors should continue to benefit from robust domestic demand.