South Africa needs to raise $293 Billion (4.8 trillion South African Rands) for infrastructure investment if it wants to meet the infrastructure target set under the National Development Plan.
The infrastructure investment shortfall was made public by the e-newspaper Moneyweb, quoting Dr. Hurbert Joynt, South Africa’s Center for Excellence’s program manager for infrastructure.
The forecasted infrastructure gap borrows from the existing investment trends and the targets required to meet the 30% GDP gross capital formation target by 2030.
In July last year, the South African government gazetted 62 Strategic Integrated Projects that would cost $ 22.2 billion (R340 billion) to accelerate the country’s post-Covid-19 pandemic recovery.
In October of the same year, the government launched 55 new strategic infrastructural projects that will cost $35 billion (R595 billion).
“It is a massive target, but with all the infrastructure investments [planned] will definitely augment and assist the growth in gross fixed capital formation,” said Dr. Hurbert. Local, provincial, national government, public-private partnerships, and state enterprises will have to contribute about $35 billion (R600 billion) to the current spending. However, these entities will have to raise that contribution to about $93 billion (R1.6 trillion) in the future.