Tis the season to be… Sneezing: 4 ways winter air quality…New Web Hosting Pioneer Emerges, Offering Affordable Hosting Solutions Coupled with…The South African government is actively pursuing innovative funding mechanisms to enhance infrastructure financing and delivery. These measures aim to optimise the infrastructure value chain, improve efficiency and attract private sector participation.
The corporatisation of the Transnet National Ports Authority and establishment of the Infrastructure Manager are two long-awaited reforms. “I am, however, cautious that the factors driving the decision to reform masks failures in the two ecosystems that will not be addressed in the transition, giving exposure to downstream risks,” warns Lutchman.
Therefore, it is imperative that South Africa find a way to stimulate infrastructure spending within a constrained public fiscus. Jooste points to several innovative funding mechanisms the government can draw on, including Public-Private Partnerships , Infrastructure Bonds and Development Impact Bonds .
The government is also looking to introduce new financing instruments such as infrastructure bonds and concessional loans. In addition, it is considering a flow-through tax vehicle for specific infrastructure projects, similar to trusts and other investment vehicles. A funding window for proposals under this new financing framework will be provided to public institutions.
“How can we ensure that the correct parties gain an advantage from the change to renewable energy and green hydrogen?” questions Botha. Another issue is ensuring that the local environment and communities are not disrupted to produce a resource that will mainly be exported, at least initially, to Europe or Asia.