The Infrastructure for South Africa report, commissioned by Business Leadership SA and drawn up by Intellidex, seeks to advance the conversation on infrastructure investment.
The report recommends several interventions to improve the volumes of infrastructure investment, focused on mobilising private sector funding and supporting public sector capacity. It calls for structural reforms in energy, mining and spectrum availability to rapidly boost private sector investment, which can be achieved at no cost to the public purse. It also calls for greater use of public-private partnerships (PPPs) to bring together the strengths of the public and private sectors to deliver maximum value for investment to the public. It calls for reforms to the PPP framework with complexity aligned to project size and risks, and for PPPs to be used more by SOEs to overcome balance sheet constraints to funding investment. It also recommends reforms to the on-budget procurement framework to reduce the skills constraint faced by public institutions in procuring infrastructure. Business is also focused on contributing skills to bridge public sector capacity constraints though initiatives such as Tamdev, a National Business Initiative project to strengthen the state’s capacity to improve service delivery and create jobs.
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