Government will set aside R100bn over the coming decade to co-finance projects
DURBAN – Finance Minister Tito Mboweni on Wednesday delivered his Medium-term Budget Policy Statement to South Africa in Parliament.
In his address the Finance Minister said that it is critical to drive further infrastructure investment in the country.
He also highlighted that public‐sector infrastructure projects are plagued by poor planning and implementation.
This comes out in under spending, which reached 20 percent of capital budgets last year.
The budget facility for infrastructure, a technical entity that reviews complex capital projects, has already strengthened state capacity.
In addition, government has made progress on a blended finance Infrastructure Fund.
In his address the Minister said that the Fund will be hosted by the Development Bank of Southern Africa and will be led by Dr Sean Phillips.
The implementation team for the fund is already at work and the team has already identified policy and regulatory hurdles.
According to the Minister, a pipeline of possible projects amounting to more than R500 billion has been identified and government has set aside R100 billion over the coming decade to co‐finance programmes and projects, with R10 billion in the baseline. Pilot projects receive over R500 million in the current year.
Mboweni said, "We are working with the private sector to make this fund a success".
He also said that substantial conversations have taken place with both private banks and private institutions in regards to the fund.
MoF @tito_mboweni said today: Government has made progress on a blended finance Infrastructure Fund. The Fund will be hosted by the Development Bank of Southern Africa. A pipeline of possible projects amounting to more than R500 billion has been identified. #MTBPS2019— National Treasury (@TreasuryRSA) October 30, 2019
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