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INSIGHT: Action needed to ease the burden on South Africa’s water systems

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The combination of rapid urbanization, climate change and droughts, high water demand and aging infrastructure has severely strained local water systems. This strain has resulted in water shortages, water-shedding, and the growing threat of water-shedding. According to Olebogeng Manhe, Chairman of the Gap Infrastructure Corporation (GIC) to tackle the growing pressure on water systems, both short-term and long-term measures are required. While short-term steps may not prevent water-shedding completely, they can provide immediate relief and buy time for long-term solutions to be implemented. Improving existing water infrastructure is a crucial part of the long-term solution. Significant investments are needed to upgrade or replace aging infrastructure, especially in rapidly growing towns and cities. However, the public sector alone may not have the resources to meet these financial demands, which is where public-private partnerships (PPPs) come into play. PPPs play a vital role in mana
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Will the infrastructure fund be ready when required?

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Finance Minister Tito Mboweni has said infrastructure investment is needed to grow the economy post-Covid-19.However hours before he delivered his speech, it was reported that state owned enterprises have over the past four years underspent by more than R140 billion on infrastructure.

Will the government infrastructure fund be ready to fund and offer forms of guarantees that are needed?

Infrastructure investment will be 'fly wheel' to grow economy - Mboweni

Finance Minister Tito Mboweni has said building a "bridge to a post-lockdown" future will need investment in infrastructure.

While Mboweni painted a grim picture of South Africa's finances in his special adjustment budget tabled in Parliament on Wednesday, he said the government would be required to build high-quality bridges, roads, railways, ports, and other infrastructure.

"Infrastructure will be the fly wheel by which we grow the economy. Just as we have toiled together to manage the pandemic, let us harness this same unity of purpose and build the infrastructure our nation needs. Our efforts to reduce consumption expenditure will also change the composition of spending in the direction of investment."

Hours before he delivered his speech, it was reported the government and state-owned entities have over the past four years underspent by more than R140 billion on infrastructure.

This was revealed during Parliament's Portfolio Committee on Public Works and Infrastructure on Wednesday, where Public Works and Infrastructure Minister Patricia de Lille presented her department's infrastructure investment plan post-Covid-19.

Infrastructure projects
President Cyril Ramaphosa earlier this week hosted the Sustainable Infrastructure Development Symposium, drawing in sector specialists as well as technical and financial structuring experts.

At the symposium, he announced the country was looking to embark on 276 infrastructure projects at a cost of more than R2 trillion.

Mboweni said considering these initiatives, the government had already committed R100 billion over 10 years towards the infrastructure fund.

"Together with the Development Bank of Southern Africa, we have identified projects that will be funded through the budget facility for infrastructure. We have recently released a paper on sustainable finance, and we are working closely with the private sector to green our economy.

Private sector

"But our enormous investment needs cannot be delivered by government alone. The private sector accounts for most of the investment spending in the economy. We must reduce long-term interest rates to allow business and households to drive faster economic growth," he added.

Source: Fin24

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