Pretoria, South Africa – The South African government is taking steps to attract more private sector investment in infrastructure projects. The National Treasury, in its mid-term budget review, outlined plans to create a more conducive environment for private sector participation.
A key initiative is the development of a blended finance risk-sharing platform, expected to be operational by the end of 2025. This platform will include a credit guarantee vehicle to mitigate risks for private developers and lenders, particularly in independent transmission projects.
Director-General Duncan Pieterse emphasized the government’s goal of institutionalizing private sector involvement in the infrastructure agenda. While the government aims to increase private sector participation, specific investment targets have not been disclosed.
Currently, the private sector contributes approximately 70% of infrastructure investment in South Africa, with the government responsible for the remaining 30%.
