SA cities set for 'massive investment'

In his first mid-term budget since assuming office, he said this would focus on developing mixed-use precincts to help catalyse economic activity.

It would also target the upgrading of informal settlements.

"South Africa's large municipalities require massive investment to stimulate growth, maintain infrastructure and ensure that basic service are provided for growing populations.

"Over the next three years, government will roll out a new approach to local government infrastructure financing."

Nene said government would also work with private investors and development finance institutions to expand debt financing for municipal infrastructure.

"The Development Bank of Southern Africa (DBSA) is examining ways to encourage greater private investment in the municipal infrastructure market."

This would be done through infrastructure bonds, municipal bond underwriting, project finance and various contract models.

"Any new initiatives will complement the DBSA's own loan disbursement, which currently total R17.8 billion over the next three years.

"These initiatives will aim to improve liquidity and extend maturities in the municipal bond market - and to encourage, rather than crowd out, private investment."

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