433369666-The-Case-for-Investing-in-South-Africa

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INFRASTRUCTURE DEVELOPMENT PLAN PRESENTS
SUBSTANTIAL INVESTMENT OPPORTUNITIES
• A very large infrastructure development programme is being rolled out in South Africa, providing opportunities
for investors to participate in specific projects, as well as for partnering with local suppliers of goods and
services in order to benefit from the enormous procurement requirements.
• Public sector infrastructure expenditure is set to total ZAR864.9-billion over the three fiscal years from 2019/20
to 2021/22. Around 70% of the total public sector spending on infrastructure is directed towards transport,
energy and water infrastructure, which should contribute to increased localised production capacity.
• President Ramaphosa announced the establishment of the Infrastructure Fund in September 2018. This Fund
is reserved for blended finance (i.e. part government and part non-government) in infrastructure projects.
The Fund will leverage much higher levels of private sector investment for public infrastructure development.
ZAR100-billion has been earmarked for infrastructure development through this Fund over the next decade.
KEY ELEMENTS OF THE NATIONAL INFRASTRUCTURE PLAN INCLUDE:
TRANSPORT AND
LOGISTICS
ZAR313.9-billion
36.3% of total
spending
HUMAN
SETTLEMENTS
ZAR57.5-billion
6.6% of total
spending
ENERGY
ZAR158.1-billion
18.3% of total
spending
EDUCATION
ZAR56.9-billion
6.6% of total
spending
WATER AND
SANITATION
ZAR132-billion
15.3% of total
spending
HEALTH
ZAR34.3-billion
4.0% of total
spending
Source: National Treasury