Partnership between the private sector and government, as well as its entities, with regard to the funding of infrastructure projects has taken centre stage at a Southern African Development Community (SADC) panel discussion.

The Government Communication and Information System (GCIS), in partnership with the Department of Water and Sanitation, Infrastructure South Africa (ISA), South African National Roads Agency (SANRAL), and the Industrial Development Corporation (IDC), hosted a virtual discussion focusing on infrastructure.

‘The participation of the private sector is key to the delivery of the infrastructure projects, [and] the issue of infrastructure funding is the key if we are to meet the goals set as South Africa and SADC, and the African continent,’ Head of Infrastructure South Africa, Mameetsa Masemola, said during the discussion on Friday.

Masemola noted that the National Infrastructural Plan indicates that, just to close the current infrastructure investment gap, South Africa needs something in
the region of R5.7 trillion, looking at the priority sectors, including water and sanitation, information and communications technology (ICT), energy, transport, and human settlements.

Masemola said the fiscus alone will not be able to carry and fund these projects, stressing a need to find mechanisms of bringing in the private sector to participate in the delivery of these infrastructure projects.

Highlighting the partnership between SADC and South Africa, the Water and Sanitation Deputy Director-General responsible for Provincial, Entity Governance and International Cooperation, Lindiwe Lusenga, described the collaborations with SADC in supporting the water projects as ‘excellent’.

Lusenga said partners are willing to put in the funds while also acknowledging the support the department has received from the institutions, including the Global Environmental Funds, and African Development Bank, who have funded feasibility studies for the Lesotho-Botswana Water Transfer Project.

‘There is [also] an appetite
because of the commitment and the manner in which we intricately commit, and the instruments of governance that we have deployed to enable us to manage these projects, like the Lesotho Highlands Water Project (LHWP). At local level, the industry has come on board, particularly organised business like mining forums that has taken up and assisted the department in local projects,’ Lusenga said.

While noting challenges when it comes to funding, SANRAL’s Head of Marketing and Communication, Vusi Mona said the entity has a wonderful working relationship with the region, working through the SANRAL platform.

‘We have received a lot of support from the private sector,’ Mona said.

Mona also stressed a need to have a matured conversations about how road infrastructure and infrastructure in general is funded.

He also stressed the need to have a serious discussion around the user pay principle, because ‘we are not going to develop infrastructure without a brazen principle’.

Infrastructure investment

Infrastructure
investment is one of South Africa’s critical drivers of economic growth and it also promotes regional integration in the SADC region.

The investment is also a critical driver of future growth of the South African economy, and the provision of superior quality infrastructure allows an economy to be more efficient, improve productivity, and raise long-term growth and living standards.

SADC has made significant progress in regional infrastructure development, including reginal transport and communications systems, which are fundamental to cooperation in the SADC region.

The provision of superior quality infrastructure allows an economy to be more efficient, improves productivity, and raises long-term growth and living standards.

Source: South African Government News Agency