OCKERT DOYER: State sees the light on private sector’s role in healing economy

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The draft National Infrastructure Plan 2050 indicates that business will play a crucial part in rolling out infrastructure investment

As the custodian of pension fund savings, the asset management industry has the ability to make a significant positive impact in SA. A sorely needed economic recovery can be sparked by allocating capital to infrastructure projects that will benefit current and future generations.

The sectors identified in the plan — energy, freight transport, water and communication — are also those identified as priorities by the private sector, so there is an alignment we must capitalise on. The plan suggests that SA needs to spend R6.4-trillion on energy, water, transport and communications projects by 2050. It says a third — more than R2-trillion — of the capital would need to come from the private sector. This will require a healthy relationship between the public and private sectors. projects there will be a 30% increase in energy demand by 2050. This means installed capacity will need to more than double, from about 50GW now to more than 100GW by 2050.

Transnet recently announced that it would embark on 10 strategic private sector participation projects in line with this sentiment. There seems to be real urgency as they plan to initiate three of these projects within this financial year.

 

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