'R400bn fund to transform infrastructure projects'
The president announced government’s eagerly awaited economic stimulus package at a briefing in Pretoria on Friday.
PRETORIA - President Cyril Ramaphosa has announced the establishment of a R400 billion infrastructure fund to drive economic growth through infrastructure development.
The president announced government’s eagerly awaited economic stimulus package at a briefing in Pretoria on Friday. Ramaphosa presented a wide-ranging economic stimulus package which has placed investment focus on agriculture, townships and rural economies.
He reflected on the recent Statistics South Africa figures which place the country in a recession. The president says the R400 billion will be allocated to the South Africa Infrastructure Fund.
“We have decided to set up what we call a South Africa Infrastructure Fund, which will fundamentally transform our approach to the roll-out, building and implementation of infrastructure projects.”
He says a team has been set up to manage the fund.
“The team will identify and quantify projects, like roads and dams, and engage the private sector to support the activities.”
Ramaphosa appealed to all sectors of society to support the plan.
The government's newly unveiled economic stimulus package will inject much-needed capital into agriculture as well as the township and rural economies.
The plans include a relook at red tape which is hindering international investment.
Ramaphosa says the economic stimulus package will invest in previously neglected areas.
“Township and rural entrepreneurship funds are being established to provide finance to either scale up existing projects or provide start-up capital for new projects.”
He adds the money will be redirected to projects to stimulate growth in townships and rural areas.
“We’ve prioritised the revitalisation or three regional and 26 township industrial parks.”
The full details will be revealed during the medium-term budget policy statement at the end of October.
WATCH: Ramaphosa announces economic stimulus package
(Edited by Shimoney Regter)