Higher education has smallest capex in public sector in 2016

Higher education institutions had the smallest share of the total capex by public institutions at R7 billion (or 2%), according to Statistician General Pali Lehohla.

Capital expenditure is any expenditure which is used to acquire or maintain fixed assets, such as land, buildings and equipment.

The Capital Expenditure by the Public Sector 2016 report findings showed that total capital expenditure by public sector institutions increased by R18 billion from R265 billion in 2015 to R284 billion in 2016.

This represents a R1,2 trillion increase in capex (capital expenditure) by public sector institutions over the last five years.

The 2016 report showed that the 49% (R138 billion) of the R284 billion capex spend by public sector institutions was made by public corporations.

Eskom and Transnet were reported to be major contributors to public corporation capex in 2015 at R73 billion and R34 billion respectively.

Higher education investment into infrastructure

Higher Education and Training minister Dr Blade Nzimande recently announced a major new investment in university infrastructure.

The focus of the spend is on new student housing, laboratories, communications technology, and other essential facilities.

Essential maintenance and the further expansion of new universities also forms part of this investment.

It is estimated that almost R7billion will be spent over the next two years on university infrastructure.

This includes R1 billion a year which will be invested in the universities of Mpumalanga (Mpumalanga) and Sol Plaatjie (Northern Cape).

Read the full story on major new investments in university infrastructure.