All data is delayed
See More

Gauteng explores funding models

May 17 2012 16:05

Johannesburg - Gauteng is seeking ways to work with private sector financial bodies to find money for infrastructure projects, finance MEC Mandla Nkomfe said on Thursday.

"The key issue is how the provincial government and the financial services sector could work together to make the Global City Region a globally competitive one," he told a financial services summit in Johannesburg.

He wanted this region, which includes Johannesburg, Pretoria and Ekurhuleni, to compare with the best financial centres in the world, such as London, New York, Hong Kong and Shanghai.

It was not necessary to debate which sector - public or private - delivered more effectively, but rather to look at how public-private partnerships could work together to make their nation a winner.

Although Gauteng is South Africa's wealthiest province, it has a massive infrastructure backlog for historical reasons and due to the large influx of immigrants.

"It is thus faced with major infrastructural pressures leading to demands for new schools, hospitals, roads, electricity, water and sewerage, recreation facilities," he said.

The private sector is holding huge capital reserves, so the key is how provincial government could create the right environment to attract some of this capital to finance projects.

Litha Nyhonya, chairperson of Regiments Capital, a sponsor of the summit, said South Africa has around R1.5 trillion available in savings and pension funds.

Of this, about R525bn is estimated to be in Gauteng.

The summit would look at how government and the financial sector could find new and creative ways to work together to develop infrastructure.

Nkomfe emphasised this would not be another talk shop.

"Let's ensure that whatever we decide here today it's something we can implement," he said.

Gauteng's infrastructure budget for 2012/13 is R30.19bn.

Participants in the one-day summit include provincial government, development finance institutions, banks and pension fund managers.


Read Fin24’s Comments Policy publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Company Snapshot

We're talking about:


Marketing is a big concern in SA's small business community, followed by a lack of confidence and partnering with the wrong people, according to a survey.

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

The 25 basis points interest rate increase is:

Previous results · Suggest a vote