Fin24

Gigaba: State companies keep SA going

2012-08-06 19:02

Johannesburg - Investments by state-owned companies into South Africa's economy are keeping the country going, Public Enterprises Minister Malusi Gigaba said on Monday.

"The fact is that state-owned companies’ investments are what is keeping the South African economy going at the present moment as private sector investments have shrunk," he said in a speech prepared for delivery at the inaugural South Africa-United States business summit in Johannesburg.

Gigaba said state-owned companies, including Eskom and Transnet, had started to implement new plans to develop the country's infrastructure.

"We have begun to witness state-owned companies embarking on long-term-planning and moving beyond their balance sheets to invest in game-changing projects.

"Should we implement the capital investment we have identified and approved, I believe South Africa’s economic landscape will have been significantly transformed in the (next) eight years."

He said Transnet had expanded its capital expenditure budget from R110bn over five years to over R300bn over seven years.

Eskom was projected to spend over R330bn in the next five years.

"We are doing a lot more than just stimulating demand... (we) are driving programmes that will put in place the infrastructure, skills and the industrial and technological capacity to drive our future economy."

The implementation of the projects would require co-ordination between the different state-owned companies, government departments, and the private sector.

The projects, which were spearheaded by President Jacob Zuma through the presidential infrastructure co-ordinating commission, would focus on the country's roads, railways, electricity supply, information and communication technology, and dams.

"The strategic, integrated projects identified by the commission will change South Africa's apartheid spatial patterns and redirect capital investments to areas hitherto neglected... (and create) the possibility for domestic and regional trade by, among others, promoting regional economic integration," Gigaba said.

He said his department would establish a dedicated office to monitor and provide support to the roll-out of the infrastructure projects.

He called on the US to invest in the South Africa.

"We would like to work with you to make direct investments into the South African economy and to develop South African companies to become part of your global supply chains," Gigaba said.

"We do not want you only to buy from South African companies for the South African market, we want to see these companies exporting into the regional and global market through your supply chain."

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Comments
  • stanton.clarke - 2012-08-06 19:28

    Should rather read the "South African taxpayer keeps South Africa's economy going." Just think of how much growth and jobs will be created if our taxes were used efficiently and stayed out of the pockets of the ANC and their corrupt cadres. Yet, there are many in South Africa who do not seem to understand this concept and will continue voting for a bunch of thieves and in the process, will remain poor and jobless.

      stanton.clarke - 2012-08-06 19:30

      Forgot to say "Me first"

  • richard.zanner - 2012-08-06 19:34

    If we are saved by state owned companies then help us all.

  • paul.john.790256 - 2012-08-06 20:00

    What is this guy smoking? So much corruption in South African SOE tenders, that you end up paying R100 for a pencil if put out on tender. The poor taxpayer must bail out SAA, Denel and it looks like Telkom bailout is on the horizon. Then, to add insult to injury, SAA sells the most expensive tickets, Denel has not been profitable since apartheid and Telkom shares might as well be rated as garbage

  • stephen.redford.16 - 2012-08-06 20:03

    Spin doctoring at its best. The private sector investment isn't growing BECAUSE : 1) There isn't enough power to go around 2) The infrastructure hasn't changed in 20 years 3) Labour has too much power 4) Investment costs in SA are high - the skills don't exist, the money is squandered 5) Nationalisation by PROXY (i.e. without calling it that) is a huge threat Yet government takes credit for having a huge expenditure plan ?

  • johnnie.vercuil - 2012-08-06 20:34

    No outsider will willingly invest in South Africa, money is too valuable to waste like that. South Africa is part of BRICS, but the Minister wants to go for investment to the USA?

  • vernon.samuel.7 - 2012-08-06 22:16

    What a twat! The only reason that Eskom and Transnet are expanding their infrastructure is to meet excess demand. They are not doing it for the sole purpose of creating jobs. With the rolling blackouts in recent years, and our electricity constantly under pressure, Eskom is investing in more power stations. Our ports have been notoriously slow and expensive in relation to international ports. Similarly our railways have been too old and unreliable to handle excess traffic to and from the ports. This has resulted in a burden on our roads and deterioration of our roads in meeting cargo traffic demands. Therefore Eskom and Transnet have been pressured to act. In fact they should have started acting 20 years ago. I assure you Gigaba, if you privatise these parastatals, the upgrades will be quicker and more efficient. Please stop taking credit where absolutely none is due. Twat!

  • sisie.indola - 2012-08-07 07:04

    No the taxpayer is keeping South Africa going - we are paying the salaries and supplying the money that gets stolen, looted and simply disappears. So no don't confuse the issue - we the taxpayer keep SA going.

  • fanie.dutoit2 - 2012-08-07 07:28

    As inthe case of he Gauteng roads - eventually the tax payers will have to pay for the development whilst the "BEE contractors and there government allies" is pocketing all the money.

  • alf.pop - 2012-08-07 08:10

    Good to know that South Africa does not need private investment, locally or foreign to grow the economy! What an idiot! I hope the international business community will take note of such remarks, because he is basiacally saying "We don't need you". Then stop begging international companies to invest in S.A., you morons!

  • maseratifittipaldi - 2012-08-07 09:47

    China will provide investment in our infrastructure. They will send experts to South Africa to assist with training and management. There will be bilateral deals. Our government will be delighted. A hundred years down the line, there will be a black radical "revolutionary" calling for "economic freedom in our lifetime".

  • ricus.nieuwoudt.9 - 2012-08-07 12:14

    Where the hell does the money come from? From the unfairly treated T A X P A Y E R S.....Government, you are run by incompetent individuals, we need a dynamic ethical educated intelligent management team to run this country!

  • SarelJBotha - 2012-08-26 13:45

    Oh my, clearly this oke does not realize it is us, the tax payers who keep all going and pays his fat salary as well, yes against our will.

  • marc.eckstein.714 - 2012-08-26 21:14

    Another clear indication that we have a huge state owned monopoly that will do anything to keep it that way. What should happen is that access to the South African power grid should be opened up to the private sector. Taxpayers can not sustain this any longer. The highly skilled individuals needed to support Eskom are finding it more and more untenable to work for an organisation run by dithering fools and are leaving the power utility in their droves. Wait until the water bomb explodes. Quite frankly I think the US has better things to do with their money.

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