The government will launch a R15 billion infrastructure bond soon to help fund badly needed infrastructure projects, which, in turn, should provide a stimulus for faster economic growth and job creation in the economy.
Finance Minister Enoch Godongwana said in the MTBPS that the government will also contribute R2bn to capitalise a Credit Guarantee Vehicle. Initially, this vehicle will support electricity transmission expansion - South Africa’s renewable energy rollout is being stymied by a shortage of thousands of kilometres of transmission lines, such as between the Northern Cape, where many new renewable energy operations are based, and other parts of the country.
“This heralds a new era in PPPs (Public-Private Partnerships), where private investment in high-voltage transmission lines is enabled,” he said.
South Africa has, for at least two decades,…