Gauteng to benefit from R7billion equity fund
The Gauteng Provincial Government has launched a R7billion private equity fund, dubbed the "Gauteng Fund" to develop new infrastructure projects in the province.
The fund is a public private partnership with a focus on job creation. In the long term it aims to contribute more than R35billion to infrastructure development in the province.
Gauteng MEC of Finance and Economic Development Mandla Nkomfe said government had put up R500million as seed capital for the fund and was approaching investors locally and abroad to raise the balance of R6,5billion for the first closing of the fund at the end of the first quarter of next year.
"It's very interesting because the response has been overwhelming and very positive, so people do still have change to put in the emerging markets," said Nkomfe.
He said that the Gauteng Provincial Government was in talks with Absa bank and the Development Bank of South Africa regarding their possible investment in the fund, and had approached potential investors in the US, the UK and Dubai.
The fund will support infrastructure projects across industry, healthcare, telecommunications, roads and logistics terminals, said Abigail Puente, project director at the fund.
"The core need for this initiative is to accelerate strategic service delivery, create jobs and develop Gauteng into a burgeoning province that is able to meet the needs of all its citizens," said Nkomfe.