Central to this strategy is a strong focus on infrastructural investment. As indicated in the Medium Term Budget Policy Statement in late 2005, government and public enterprise investment expenditure for the period April 2006 to March 2009 is planned to be about R370bn.
This investment should not only raise current growth, but will also allow for sustained future growth through improved transport, communication and electricity provision. Estimating potential output of a country is a notoriously difficult thing. The problems of estimation are compounded when a country has been experiencing significant structural changes, as has been the case in South Africa.