OPINION : South Africa must find ways to creatively fund infrastructure development.

In addition to Emeka Umeche's review, Sylvester Martins proposes alternative funding mechanisms for infrastructure projects. One such approach is project leveraging, a process where developers contribute funds from their project budgets in return for access to desirable land.

Infrastructure development plays a key role in ensuring fast economic growth and alleviating poverty in South Africa. South Africa has a good core infrastructure network such as a transport system, power, communications network, sewage and water.

Infrastructure is essential for the survival of human societies worldwide. It supports every facet of human livelihood, from the well-being and survival of one person to the collaboration between individuals to achieve corporate or communal goals.

We know that we have the municipal Infrastructure Grant's main purpose is to help municipalities to provide poor people with at least a basic level of service. Types of projects funded through MIG include: Basic residential infrastructure to the poor, including electricity, storm-water management, water supply and refuse removal.

South Africa needs to maintain and expand its electricity, water, transport and telecommunications infrastructure in order to support economic growth and social development goals. Given the government's limited finances, private funding will need to be sourced for some of these investments.

In addition, infrastructure can also reduce the cost of delivered goods, facilitate the physical mobility of people and products, remove productivity constraints, and increase competitiveness.

South Africa like a lot of other African countries needs to be creative in dealing with funding of Infrastructure.

Innovative infrastructure financing models such as PPPs and impact bonds represent powerful tools in addressing the funding challenges associated with large-scale infrastructure projects.

Other methodologies that could be adopted is project leveraging where developers are exempted from bulk contributions vs the actual cost of the bulk required (developers funding the bulk from the project funding in lieu or contributions), developers being given access to valuable land portions for Bulk Infrastructure dependencies on the project model.

Conclusion

Current Government has successfully placed infrastructure development at the heart of our country’s economic recovery plan because it is widely known that infrastructure has a powerful multiplier effect on restoring economic growth, creating new jobs and protecting livelihoods.

Sylvester Martin is the group managing director of Inkanyeli Group, which includes subsidiaries in property and infrastructure development, construction, project management, and property investment.

He is the immediate Past President of SAIBPP - South African Institute of Property Practitioners and also a chairperson of several NGOs, including the Each One Teach One Foundation and the Inkanyeli-Inkululeko Foundation, which was created by Inkanyeli Group to give back to the community.

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