Fin24

Private sector infrastructure aid needed

2012-05-24 11:04

Johannesburg - SA needs to find innovative ways to encourage private sector participation in infrastructure development in order to increase the level of private sector investment in the local economy, Public Enterprises Minister Malusi Gigaba says.

Government has identified R3.2 trillion for 17 key infrastructure programmes around the country.

He said that 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 outlying 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 the one of the key challenges to intra-Africa trade. Intra-Africa trade is said to be at a mere 12%.

The continent was in dire need of further investment, Gigaba said, particularly within transport and energy infrastructure.

"However, it is crucial that we also change Africa's relationship with the world as a producer and supplier of commodities towards a new position where 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.

 

Comments
  • Bennie - 2012-05-24 11:22

    When investing in Africa - Invest in Movable assets. Or invest what you can afford to loose .

  • NrGx - 2012-05-24 11:28

    now tell me, who is going to invest following the e-toll saga and mantashe's comments of "we dont need the wests money"? and of course, exactly who is willing to invest in this "government", its just too risky!

  • Koos - 2012-05-24 11:30

    We need to make sure our savings and pension funds are not use for this.

  • Jim - 2012-05-24 11:38

    At long last government is adjusting to the real world and admitting that the state's job is to create an environment which enables private enterprise to operate effectively and create jobs at the least possible cost to the taxpayer. One suggestion is for Transnet to fund the cost of digging out the new port in Durban and then concession out the areas behind the quay walls to various international container terminal operators on a 25 year Build, Operate, Transfer lease agreement with built in service level requirements to be provided to the shipping lines. Two things will happen. The taxpayer will be saved the high cost of paving the terminal stack areas and providing all the cranes and other equipment and, more importantly, competition between the various terminal operators will ensure maximum terminal efficiency and productivity at least cost to make South Africa more competitive in the international market place.

  • mikenortje - 2012-05-24 12:08

    How about investment friendly policies that protect the investor. You partners Cosatu et al need to be put in there place w.r.t nationalization if it is not ANC policy.

  • Ryan - 2012-05-24 12:37

    This is rich - especially since Gwede stated in no uncertain terms that the country doesn't need any aid from the West...Well if we're doing alright, why the need to beg from the private sector???

  • Vaughan - 2012-05-24 13:39

    What the hell? These people do not know the first thing about running a government. Governments don't directly create jobs. The maths is simply, for every job a government directly creates, two are lost in the private sector. A government is there to create a good climate for private industry to thrive, that's when jobs increase and the government's tax base grows.

  • Alan - 2012-05-24 14:40

    You know how to encourage private sector participation, Gigaba? Tell your Communist-inspired so-called Allies to go to hell, and then make SA a place that ENCOURAGES private sector involvement, not drives it away with the the most rigorous business laws in the world. Until then, jobs will continue to be lost and the poor will get even poorer.

  • Hilette Hyland - 2012-05-25 04:25

    If the ANC would stop stealing from the public they would not need private sector participation!!!

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