South African govt considers funding models for infrastructure projects

23 May 2012

The South African government is currently exploring various funding models for its ambitious infrastructure improvement projects, worth R3.2 trillion (£24.4 billion).

That is according to Malusi Gigaba, the country's public enterprise minister, who explained that the money is needed to fund 17 projects across the country.

Mr Gigaba explained that the government is currently undecided on how these projects - which could stimulate the economy - will be funded, BuaNews has reported.

"We're looking at the idea of establishing an infrastructure fund of public-private partnerships ... that is partnerships between state owned companies and development finance institutions like the IDC [Industrial Development Corporation]," he commented.

"We're looking at various other funding models."

News of the infrastructure improvement plan was announced recently by South African president Jacob Zuma during his State of the Nation Address in February.

The projects are spread across various sectors, including the rail system, roads and schools.

Category: General