A year later, Cyril Ramaphosa’s R100 billion infrastructure fund is still not operational – here’s what’s been happening
- President Cyril Ramaphosa announced a giant infrastructure fund as part of his economic stimulus plan in September 2018.
- The R100 billion fund has still not been launched a year later.
- An announcement about the fund will now only be made at an upcoming investment conference, his office says.
- For more stories go to www.BusinessInsider.co.za.
President Cyril Ramaphosa’s planned giant infrastructure fund, first announced in his economic stimulus and recovery plan, has still not been launched a year after it was first announced.
At its September 2018 announcement, Ramaphosa said the fund will fundamentally transform the state’s approach to infrastructure projects.
The Infrastructure Fund is due to reduce the current fragmentation of infrastructure spend and ensure more efficient and effective use of resources, he said.
During his State of the Nation Address (SONA) in February, Ramaphosa said the state had committed to contribute R100 billion into the Infrastructure Fund over a 10-year period.
And in his June SONA, Ramaphosa said the fund will give a much-needed boost to the construction industry, and that private investors, such as pension funds, are enthusiastic about participating in the fund.
In response to questions from Business Insider South Africa, Ramaphosa’s spokesperson Khusela Diko said an announcement about the fund’s establishment and first projects will only be made at the an investment conference in November.
Diko said a lot of preparatory work had to be completed before the launch of the fund, including studies by the Development Bank of Southern Africa (DBSA) on how to leverage private sector expertise and capital in an effective and sustainable manner.
She said an interim head of the infrastructure fund implementation unit has also been appointed to drive the setting-up of the unit within the DBSA.
The National Treasury is expected to soon release the allocated funds to the fund to begin its work, Disko said.
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