A growing economy needs two types of capacity: infrastructure and human capital. Government's growth strategy focuses on both.
Massive resources are being poured into infrastructure investment - the treasury infrastructure database has about 15 000 entries and provincial files a further 1 000 projects.
They include plans for new power generation capacity and rehabilitation and expansion of road and rail transport networks, improved water resource management and the modernisation of communications.
But this impressive list of projects will founder unless concerted efforts are made to step up public-sector project management capacity.
This is clear from the constraints on more rapid infrastructure developments, identified in the Budget review : "After two decades of relative stagnation the construction industry is straining to meet demand. Engineering expertise has been depleted and project management capacity is under stress."
These shortfalls highlight the importance of the other area of capacity: skills development. "Investing in people and ensuring that skills development complements employment creation are critical platforms [for] future prosperity," says the Budget review.
The challenge is being addressed on several fronts.
Though education, with 20% of government spending, takes the largest slice of the budget, the quality is inadequate and uneven and education administration is weak, says the review.
Remedial action is planned. "Initiatives in progress focus both on expanding resources allocated to schools and further education institutions and on addressing institutional and managerial challenges and critical curricular reform needs."
As a priority, engineering faculties are to be strengthened and student enrolment in engineering and technical fields is to be accelerated.
"Joint initiatives, involving public- and private-sector stakeholders, are in progress to contribute to the institutional capacity needed in broad-based development and empowerment," says the review.
"The Development Bank of Southern Africa is assembling a task force of engineers and project managers to be named Siyenza Manje (We Act Now). They are to come to the aid of distressed municipalities and accelerate the rollout of basic services."
Efforts will also be made to improve corporate governance and risk management. Government will "enhance planning and project management capacity and reinforce tools and procedures for fighting corruption and waste", says the Budget review.
Under Project Consolidate, "government will give focused attention to municipal financial management and procurement administration". It will introduce supply-chain management reforms. These "include rules to prohibit illegitimate business activity of public employees and elected office bearers and improved guidelines for tender practices, transparency, prompt payment and performance management.
"Where necessary, investigative powers and early intervention capacity over all three spheres of government will be developed to complement the resources of the prosecuting authorities."
By focusing on the critical third tier of government, initiatives are intended to make up for earlier failures in basic service delivery.
