Johannesburg: The Deputy Minister of Finance, Dr. David Masondo, has announced that the South African government is committed to reviving the country's economic growth through substantial public infrastructure investments and structural reforms. Despite a subdued economic growth rate over the past decade, the government is taking significant steps to foster a more robust economy.
According to South African Government News Agency, the government has pledged to spend over R1 trillion on public infrastructure over the next three years. This investment will concentrate on critical sectors such as roads, energy, water, and sanitation. Dr. Masondo emphasized the importance of sustainable infrastructure development and the need for private sector participation to meet the country's development aspirations.
Addressing the Moneyweb Economy and Investing Summit in Johannesburg, Dr. Masondo highlighted various incentive schemes designed to attract private sector financing and expertise. The introduction of the Credit Guarantee Vehicle (CGV) aims to derisk large infrastructure projects, starting with transmission infrastructure, without requiring sovereign guarantees.
To further encourage private sector involvement, the government has revised the regulations governing Private Public Partnerships (PPPs), simplifying processes and reducing the need for National Treasury approval for projects under R2 billion. This aims to streamline administrative procedures and improve delivery outcomes for infrastructure projects.
Since President Cyril Ramaphosa's administration took office, reducing the cost of doing business in South Africa has been a primary focus. Economic and fiscal reforms, including debt sustainability, are being pursued to lower borrowing costs and boost investor confidence in sovereign and corporate bond markets.
Furthermore, the government is working to diversify trade partners, as exemplified by a recent trade agreement with China on stone fruit. Efforts to stabilize prices through the Inflation Targeting (IT) Regime are also underway to maintain low inflation and interest rates, benefiting both consumers and producers.
The government is implementing structural reforms through Operation Vulindlela to enhance competitiveness by reducing business operation costs. The programme's initial phase focused on energy, logistics, water, telecommunications, and the visa system. Its second phase will address local government performance, spatial inequality, and digital transformation.
Following South Africa's greylisting by the Financial Action Task Force (FATF) in February 2023, the government has addressed deficiencies in its anti-money laundering and terror financing system. Dr. Masondo noted that South Africa has completed the necessary actions for potential removal from the grey list, with a decision expected at the FATF Plenary in October 2025.