Featured Post

NEWS : Government's strategic plan to combat the Construction Mafia

Posted by on
Deputy Minister of Finance, Ashor Sarupen, has outlined a three-pronged government strategy to counter the escalating disruptions to construction sites by criminal groups. These disruptions threaten the gains made in transforming South Africa into a vibrant construction hub. The strategy focuses on public procurement reform, public-private partnerships (PPPs), and infrastructure investment. Sarupen emphasized that these disruptions are not merely operational challenges, but a stress test for South Africa's economic governance, exposing vulnerabilities in institutional frameworks and socio-economic fractures within communities. GOVERNMENT'S THREE-PRONGED STRATEGY TO COMBAT CONSTRUCTION MAFIA. The full article can be read on BIZCOMMUNITY follow our Whatsapp channel  here  for more hardhatREVIEWS.
0

NEWS: South Africa's infrastructure spend will require participation from the private sector

Posted by on
Between 1998/99 and 2017/18, the public sector spent R3 trillion on infrastructure, but in the lack of fiscal space means that in future a substantial portion of infrastructure spending will have to be provided for by the private sector.


That is why the government undertook a review of the public-private partnership regulations, which was completed in May 2021.

Its recommendations include simplifying the regulations, eliminating delays in approval and implementation, and standardizing project preparation; and building capacity at all levels of government will be implemented from early 2022.

Public sector infrastructure spending increased from R48.8 billion in 1998/99 to R236.2 billion in 2017/18. In real terms, infrastructure spending grew by an annual average of 4.3%.

State-owned companies have spent R1.3 trillion on infrastructure over this period, while municipalities and provincial departments have spent R612.8 billion and R705.2 billion respectively to build schools, hospitals, clinics and other community-related infrastructure.

From 1998/99 to 2017/18, public-sector infrastructure expenditure as a share of gross domestic product averaged 5.9%. It peaked at more than 8% in the 2009/10 fiscal year when stadiums were being completed to host the 2010 Soccer World Cup.


It has subsequently eased to the 5% level as spending on social infrastructure such as schools, hospitals and sanitation has grown at a slower pace as a result of pressure on budgetary resources, including the growth in government’s wage bill and new policy commitments.

The government has prioritised creating additional electricity generation capacity.

The new Finance Minister Enoch Godongwana acknowledged that the government has spent the past 13 years trying to fix the problem at state-owned electricity utility Eskom rather than trying to create additional electricity generation capacity.

Eskom has a deadline of December 31 to complete the legal separation of its transmission division.

Source: IOL

Comments

Post a Comment