South African President Cyril Ramaphosa says his plan to boost the economy by launching major construction projects has attracted a record 238 billion rand (about $13.3 billion) in investment.
- South African President Cyril Ramaphosa announced a record investment of 238 billion rand aimed at major construction projects to boost the economy.
- The planned projects cover critical sectors such as energy, roads, and water, with the goal of encouraging further investments.
- South Africa’s National Treasury has allocated 1.03 trillion rand for public infrastructure development over the next three years.
South African President Cyril Ramaphosa says his plan to boost the economy by launching major construction projects has attracted a record 238 billion rand (about $13.3 billion) in investment.
Speaking at an infrastructure summit in Cape Town, Ramaphosa said the government’s new construction pipeline for the fiscal year starting April 1 includes around 250 projects. These cover key sectors such as energy, roads, and water, Bloomberg reported.
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“Infrastructure is the flywheel that our economy needs to boost growth and to create jobs,” he said. “Infrastructure that is well constructed and maintained encourages investors to see our country as a great investment destination.”
“We will turn South Africa around and make it a true construction site, but a beautiful site for all to behold,” Ramaphosa said.
The National Treasury has set aside 1.03 trillion rand for public infrastructure over the next three years, aiming to attract more investment from the private sector.
Infrastructure crisis
Years of underinvestment and poor management have created a huge infrastructure gap in South Africa, the continent’s largest economy. Even wealthier communities are not shielded from the effects.
Business Insider Africa reported that Johannesburg, often recognized as Africa’s wealthiest city due to its high concentration of businesses and millionaires, requires 221 billion rand ($12 billion) to resolve its infrastructure crises.
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According to the report, key challenges include frequent power outages due to problems in the electricity distribution network, slow responses to pothole repairs, and severe water shortages, with some neighbourhoods going days without running water.
President Cyril Ramaphosa has acknowledged the scale of the problem, estimating that the country needs up to 1.6 trillion rand in public investment and an additional 3.2 trillion rand from private players to meet its infrastructure targets by 2030.
In March, South Africa, in partnership with the World Bank, launched a $3 billion initiative to restore essential services and improve infrastructure in eight of its largest cities.
Still, Deputy Finance Minister Ashor Sarupen acknowledged that bringing in private investment has been difficult. He said the government’s public-private partnership program is too “convoluted,” and investors remain wary due to ongoing concerns about corruption and poor governance.
