Investigating the prudential determinants of infrastructural investment appraisal techniques in airports company South Africa
type: CreativeWork
description: Academic literature advocates that infrastructure contributes significantly to a country's economic development. In the South African context, airport infrastructure is one of the contributors to the economic development of the country. The South African government has limited financial resources, to service public infrastructural needs; therefore, the national government implemented the Sustainable Infrastructure Development Symposium [SIDSSA] initiative on 23 June 2020 to accelerate the delivery of country infrastructure. However, project appraisal was identified as a key governmental challenge - particularly in the public investment management space - and many projects were funded prematurely. This perspective has motivated a host of academic literature to analyse airport infrastructure investment decision making process, based on financial and non-financial factors. Consequently, this current research was conducted, using an exploratory qualitative methodology, to explore the appraisal techniques mostly used in infrastructure investment decision making at the Airport Company South Africa [ACSA]; determinants of infrastructural investment decision making; and to make recommendations for prudential infrastructural investment appraisal techniques for ACSA. The primary data was collected from 10 ACSA senior and professional employees, both current and previous members of investment committees. The findings concur with academic literature, which identify the best infrastructural investment appraisal techniques as Net Present Value and Internal Rate of Return, the appraisal techniques that assess the time value of money, specifically, receiving a rand today is more valuable than receiving a rand in the future, due to uncertainties. Additionally, the study revealed that ACSA needs to consider both financial and non-financial factors when making an investment decision, namely, alignment with company strategy, compliance with regulations and standards, project lifecycle,…
abstract: Academic literature advocates that infrastructure contributes significantly to a country's economic development. In the South African context, airport infrastructure is one of the contributors to the economic development of the country. The South African government has limited financial resources, to service public infrastructural needs; therefore, the national government implemented the Sustainable Infrastructure Development Symposium [SIDSSA] initiative on 23 June 2020 to accelerate the delivery of country infrastructure. However, project appraisal was identified as a key governmental challenge - particularly in the public investment management space - and many projects were funded prematurely. This perspective has motivated a host of academic literature to analyse airport infrastructure investment decision making process, based on financial and non-financial factors. Consequently, this current research was conducted, using an exploratory qualitative methodology, to explore the appraisal techniques mostly used in infrastructure investment decision making at the Airport Company South Africa [ACSA]; determinants of infrastructural investment decision making; and to make recommendations for prudential infrastructural investment appraisal techniques for ACSA. The primary data was collected from 10 ACSA senior and professional employees, both current and previous members of investment committees. The findings concur with academic literature, which identify the best infrastructural investment appraisal techniques as Net Present Value and Internal Rate of Return, the appraisal techniques that assess the time value of money, specifically, receiving a rand today is more valuable than receiving a rand in the future, due to uncertainties. Additionally, the study revealed that ACSA needs to consider both financial and non-financial factors when making an investment decision, namely, alignment with company strategy, compliance with regulations and standards, project lifecycle,…
author: Ndadza, Phindulo
language: en
keywords: infrastructural investment, airports company, South Africa
date published: 2024
date modified: 2026-07-22T22:22:55Z
provider: University of Cape Town
publisher: Networked Digital Library of Theses and Dissertations
type: WebPage
source organization: Graduate School of Business (GSB)

PropertyValue
property ID: Handle
value: http://hdl.handle.net/11427/41130