Ramaphosa: Massive infra rollout key to recovery

South Africa President Cyril Ramaphosa has pledged to change the PPP framework as part of his government’s economic reconstruction and recovery plan.

“We are embarking on a massive rollout of infrastructure throughout the country,” he told the nation’s parliament. “Infrastructure has immense potential for stimulate investment and growth, to develop other economic sectors and create sustainable employment both directly and indirectly.”

As part of this effort, he detailed the government’s creation of Infrastructure SA to help direct projects, as well as the new Infrastructure Fund, which he said will provide “R100bn [US$6bn] in catalytic finance over the next decade, leveraging as much as R1trn in new investment for strategic infrastructure projects”.

Over the next six months, Ramaphosa said the government would “adapt the infrastructure procurement framework to enable public-private partnerships and unlock new funding”.

He also pointed to innovative financing efforts to increase private participation: “We are exploring the use of credit enhancing instruments to unlock bulk water infrastructure and national roads improvement projects.”

Earlier this month, Ramaphosa launched a new ‘megacity’ to be delivered through a PPP model.