Finance Minister Tito Mboweni. Picture: AP/African News Agency (ANA) Archives
Finance Minister Tito Mboweni. Picture: AP/African News Agency (ANA) Archives

Infrastructure development should be a priority for government

By Dhivana Rajgopaul Time of article published Feb 26, 2020

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CAPE TOWN - Finance Minister Tito Mboweni tabled the annual 2020 Budget on Wednesday the 26th of February 2020.

In the lead up to Mboweni asked South Africans to submit 2020 Budget tips. 

One such South African was Funanani Sikhwivhilu from Limpopo who said "Infrastructure development should be a priority for the government" and the Finance Minister agrees. 

"In fact, capital spending is the fastest growing component of non-interest spending. This spending is complemented by the Infrastructure Fund," said the Finance Minister. 

According to Mboweni, over the next three years the Development Bank of Southern Africa will package blended finance mega-projects of least R200 billion while government has committed R10 billion over the next three years. 

The VulekaMali internet portal shows that there are currently 25 infrastructure projects scattered across the country that have received funding. The infrastructure projects fall under a variety of sectors including water and sanitation, transport, justice and constitution, health, police, basic education, science and finally higher education and training. 

The infrastructure projects that have featured on the VulekaMali portal include Calitzdorp and Ladismith wastewater treatments works upgrade; Cape Town's Metro Southeast (MyCiti Phase 2A) upgrades and additions;new infrastructure assets for the Durban High Court and the maintenance and upgrades of the Bambisana Hospital amongst others. 

Mboweni said he believed the Treasury and trade unions "will find each other" on the measure, and Moody's would favourably appraise the government's efforts to bring the deficit back under control.

"Our reading is that they will react to how they read our fiscal stance... I don't know, but I don't think they will re-rate us on our fiscal stance," he told the media shortly before he tabled his budget in the National Assembly.

BUSINESS REPORT ONLINE

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