Gauteng faces R1.6tr infrastructure funding shortfall
Gauteng needs R1.8-trillion over the next 15 years to deliver the infrastructure required to support the economic development of South Africa’s economic powerhouse, Gauteng Premier David Makhurasaid on Thursday.
With some 412 infrastructure projects planned over a 15-year period, there is a deficit of some R1.6-trillion, with the Gauteng provincial government’s own allocation being less than R50-billion over the medium-term framework.
“This is not enough. We need more,” Gauteng Economic Development MEC Lebogang Maile told delegates at the second Gauteng Infrastructure Investment Conference, in Midrand.
Infrastructure investment, maintenance and service delivery are the “lifeblood” of the necessary social and economic transformation of South Africa’s most populous province, he said.
Makhura, reiterated that this remained one of the top priorities for the province’s Transformation, Modernisation and Reindustrialisation Programme, explaining that major institutional and policy intervention was required to reignite growth and promote inclusivity.
He pointed out that for every R1 spent on infrastructure, 92c made its way into the Gauteng economy.
However, government just did not have the funds to meet the current or future infrastructure requirements and never will.
Makhura stressed the importance of public–private partnerships (PPPs) in mobilising the resources required to meet Gauteng’s infrastructure needs.
He further noted that the creation of an enabling environment needed to be accelerated to ensure private sector participation in infrastructure development.
There is also a need to cut red tape and streamline approval processes.
Bluefield Investment MD Ravi Naidoo dsaid: “Infrastructure investment in Africa needs good matchmakers,” discussing the formations of partnerships and the importance of the right mix of partners, the understanding of the risks involved and acknowledging the roles and the limits of the partners.