Godongwana highlights boosting infrastructure investment for higher growth in MTBPS
Finance Minister Enoch Godongwana says a raft of reforms are in the pipeline to encourage greater private sector participation in infrastructure development.
Enoch Godongwana, the South African Minister of Finance, delivers his mid-term budget policy statement in the Cape Town City Hall, which is being used as a venue for the South African Parliament, in Cape Town on 1 November 2023. Picture: @GovernmentZA/ X.
CAPE TOWN - Boosting infrastructure investment to stimulate economic activity and enable higher growth over the medium term – is a key focus of the Medium-Term Budget Policy Statement (MTBPS) that the Finance Minister tabled in Parliament on Wednesday.
Minister Enoch Godongwana says a raft of reforms are in the pipeline to encourage greater private sector participation in infrastructure development.
While the National Treasury says it doesn’t have an investment target in mind, it’s making a concerted effort to increase the pool of funders to diversify public infrastructure financing.
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Godongwana says he’s been inspired by his predecessor Tito Mboweni, who in one of his last interviews before his death earlier this month, spoke of the next few years being defined as the “infrastructure years”.
National Treasury says the quality of public sector infrastructure spending is currently suboptimal and the quantity is inadequate.
Godongwana says regulations will be introduced soon to simplify public-private partnership (PPP) requirements.
"We are developing a blended finance risk-sharing platform that includes a credit guarantee vehicle that will help de-risk public-sector projects while reducing government’s contingency liabilities."
A host of projects have already been prioritised, including two hospital projects, expansions to the Cape Town container terminal, rail upgrades to Gqeberha and rehabilitating the water infrastructure in eThekwini.
Godongwana says the amended PPP regulations will be published before the end of November for implementation in 2025.
Municipal regulations will be finalised by June next year.