President Cyril Ramaphosa delivers his state of the nation address at parliament in Cape Town, February 13 2020. Picture: REUTERS/SUMAYA HISHAM
President Cyril Ramaphosa delivers his state of the nation address at parliament in Cape Town, February 13 2020. Picture: REUTERS/SUMAYA HISHAM

The Infrastructure Fund has a project pipeline with potential investments of over R700bn over the next 10 years, President Cyril Ramaphosa said in his state of the nation address in parliament.

The fund which was announced by Ramaphosa in 2019 and which is managed by the Development Bank of Southern Africa has finalised a list of shovel-ready projects, the president said, and had begun work to expand private investment into public infrastructure sectors with revenue streams.

These projects include both government and nongovernment contributions.

“These include areas like student accommodation, social housing, independent water production, rail freight branch lines, embedded electricity generation, municipal bulk infrastructure and broadband rollout.”

Ramaphosa said the social housing programme to build rental housing for low income families was at an implementation stage. It could leverage R9bn of private investment in the construction of 37,000 rental apartments.

The government planned to spend R64bn on student accommodation over the next few years and would leverage at least another R64bn in private investment.

The president said the government’s investment drive would be enhanced with the establishment of an integrated investment and promotion facilitation capability co-ordinated from the presidency.

A third investment conference would be held in November. At the second investment conference last year over 70 companies made investment commitments of R364bn.

“In the first two years of our ambitious investment drive we have raised a total of R664bn in investment commitments which is more than half of our five-year target of R1,2-trillion,” the president said.

“Already projects with an investment value of R9bn have been completed and 27 projects worth just over R250bn are in implementation phase with more coming on stream this year.”

ensorl@businesslive.co.za

Would you like to comment on this article or view other readers' comments?
Register (it’s quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.