INFRASTRUCTURE
MAGDA WIERZYCKA: Build investment framework and the funds will come
Given the sorry state of affairs at most of the state-owned enterprises, the government’s finances are buckling under the strain of bail-outs and government guarantees issued to prop up monoliths plagued by years of inefficiency, financial mismanagement and outright theft. Although partial privatisation may be the answer some time in the future, you cannot privatise a company until you have had an opportunity to fix at least some of the problems. The other major issue facing SA is our failing infrastructure. Years of underinvestment have meant that many parts of the country are facing a lack of water, poor sanitation and terrible road conditions. Fixing and upgrading infrastructure is a multiyear project. On the positive side, it has the potential to create an enormous number of jobs, making a real dent in unemployment. On the negative side, it requires funding on a massive scale — funding the government cannot afford. There is only one answer. We need to mobilise the savings of ord...
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