The South African government is changing the way the private sector participates in public infrastructure projects, the National Treasury said on Wednesday.
“Over the medium term, the government is transforming its approach to public-sector infrastructure by creating the conditions to attract private-sector participation,” the National Treasury’s mid-term budget review said.
The government will single out the property as a separate asset to help boost the economy, Finance Minister Enoch Godongwana told a budget briefing in Cape Town on Wednesday. President Cyril Ramaphosa’s government is seeking 3.2 trillion rand ($182 billion) from the private sector by 2030 to help improve roads, ports and other public works.
The Finance Ministry also said the government has created a joint financial risk to develop the independent power generation project.
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The platform will include a guaranteed credit facility expected to be operational by the end of 2025 to assist private developers and borrowers reluctant to commit to public projects.
Cars will be launched in the automatic transmission program for the first time, with other options to be introduced in the medium term.
Treasury did not say how much investment it expects to attract.
“There is no specific number, but we are institutionalising their (the private sector) involvement in our infrastructure agenda,” Director-General Duncan Pieterse said.
