Capital versus labour intensive road building technologies in South Africa.

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Date

2017

Authors

Van Niekerk, Izak Jacobus Marthinus

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Abstract

Unemployment is arguably the biggest challenge the South African government has faced in recent times. The poverty and other social challenges that in turn accompany unemployment, are key drivers for politicians and policy makers to devise strategies to address these. South Africa is a vast land with rural communities spanning large distances. Access to these communities to provide goods and services and stimulate trade requires a road infrastructure, which is currently not in place at acceptable standards. This presents a significant opportunity for the government to channel investment into infrastructure projects, in order for jobs to be created and communities’ lives to be improved. The question is how to spend these funds in the best possible way; create the most jobs or install the best roads as quickly as possible? This study will critically evaluate the two extremes of the labour versus technology continuums, and attempt to find a balance somewhere within that to result in the best value. A mixed method of both qualitative and quantitative research methodologies for gathering appropriate data was followed by means of conducting semi-structured interviews with the various interest groups involved in road building and related projects. It was found that it is possible to create a significant number of jobs in road building projects without compromising the project budget or quality. The key message is that a ‘modified equipment-based’ approach must be followed to provide the optimal solution.

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MBA Thesis

Keywords

Roads -- South Africa,Infrastructure (Economics) -- South Africa,Unemployment -- South Africa.

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