South African President Cyril Ramaphosa has urged stronger collaboration between the government and private sector to increase infrastructure investment. He said this partnership is key to economic growth and better public services.
Speaking in the National Assembly on Tuesday, Ramaphosa outlined the government’s commitment to infrastructure development. He stressed that private sector involvement is essential for achieving national goals.
“The government has launched an ambitious infrastructure program,” he said. He referred to his February State of the Nation Address, where he highlighted ongoing projects in transport, energy, and water systems.
Ramaphosa explained that public investment in infrastructure would encourage more private sector funding. This, he said, would strengthen key areas like electricity, rail transport, and water supply.
However, he clarified that pension funds and private investments do not belong to the government. “Resources held by financial institutions, including pension funds, belong to workers. These are their hard-earned savings for retirement,” he said.
To support long-term infrastructure investment, the National Treasury amended Regulation 28 of the Pension Funds Act in 2022. The update allows pension funds to invest up to 45/percent of their portfolios in infrastructure projects. Recent changes also raised the private equity investment limit from 10/percent to 15/percent.
More efforts are underway to attract investors. Ramaphosa noted that in October 2024, Finance Minister Enoch Godongwana introduced new investment options. These aim to simplify and encourage private sector participation. Further details will be in the national budget, set for release on Wednesday.
South Africa faces economic challenges, including power shortages and aging infrastructure. Strengthening public-private partnerships could provide long-term solutions for sustainable development.