Projects of R3.2-trillion identified
SOUTH Africa needs to find innovative ways to encourage private sector participation in infrastructure development.
This will help increase the level of private sector investment in the local economy. Public Enterprises Minister Malusi Gigaba has said
The government has earmarked R3.2-trillion for 17 key infrastructure programmes around the country.
Minister Malusi Gigaba said while some of the money was available for this infrastructure roll-out programme, much still needed to be funded.
"The government has identified various funding models including the possibility of an infrastructure fund, public-private partnerships, public-public partnerships, and other models in order to unlock the balance sheet of the private sector," he said.
Gigaba noted that in July President Jacob Zuma was due to host an infrastructure conference outlining government's plans to get buy-in from the private sector, as well as identifying areas for public-private participation.
Lack of infrastructure has often been indicated by leaders as one of the key challenges to intra-Africa trade. said to be at a mere 12%.
The continent was in dire need of further investment, Gigaba said, particularly in the transport and energy infrastructure.
"But it is crucial that we also change Africa's relationship with the world as a producer and supplier of commodities to a new position in which we also add value and participate in value-added trade," he said.
Gigaba said it was not viable to simply invest R3.2-trillion in establishing the road, rail and energy infrastructure that was needed, without also ensuring the development of related jobs and skills via the rollout of such programmes.