The Centre for Development and Enterprise (CDE) says no significant government-led infrastructure project has been initiated since 2018.
The organisation's comments follow the release of its report on Accelerating SA’s Infrastructure.
The CDE report is based on a high-level workshop between leaders in the financial sector and the senior government officials responsible for the state infrastructure drive.
Executive director Ann Bernstein said in a statement: “There is already a strong concern among investors – local and international – about the country’s credibility and capacity to set up fast-tracked projects for private investment. Without speedy action, investors will lose interest and move on.”
She said that the private sector is willing and able to participate in well-designed, state-led infrastructure projects but “there are no projects coming to market”.
In its report, the CDE further said there was plenty of agreement, and both sides spoke about improved co-operation and understanding and that to turn this spirit of goodwill into a programme of action requires important changes from both business and government.
Bernstein also said that business needs to make the requirements of investors crystal clear.
“This is not a time for mixed messages or coded politeness – as one participant put it, it’s a time to be very frank. Government leadership must stop talk of the imminent arrival of scores if not hundreds of projects. This is not going to happen.”
She explained that it would be far better to decide on four or five projects to kickstart investment and partnerships.
Furthermore, the organisation addressed that dealing with the investment environment for the mining sector would drive new spending in exploration and resolve uncertainties around property rights.
Bernstein made it clear: “If we really want a private investment that kick starts economic growth then much more urgency in implementing policy reform is required.”
Political Bureau