![The meeting with the Gauteng Provincial Government’s Executive part of a series of engagements between the President and provinces aimed at enhancing intergovernmental coordination and improve service delivery in line with the priorities of the 7th Administration. [Photo: GCIS]](https://theafricadailypost.com/wp-content/uploads/2025/03/54369756952_4b510b3dc4_k-860x574.jpg)
President Cyril Ramaphosa has called for enhanced collaboration between the government and private sector to accelerate infrastructure investment and drive economic growth in South Africa.
Speaking in the National Assembly during a Questions for Oral Reply session on Tuesday, Ramaphosa stressed the need for structural reforms to address critical challenges, including energy supply constraints and inefficiencies in freight and logistics.
He stated that scaling up investment in infrastructure is crucial for achieving the country’s economic objectives. The government has launched an ambitious infrastructure development programme designed to attract private sector investment in electricity generation, distribution, rail transport, and water infrastructure.
Ramaphosa also clarified the distinction between public and private financial resources, particularly pension funds held by financial institutions. He noted that these funds belong to workers and are intended for their retirement security, making them private assets rather than state-controlled resources.
To encourage infrastructure investment, the government aims to provide pension fund savers with a reasonable return while ensuring their funds remain protected. A step in this direction was taken in 2022 when National Treasury amended Regulation 28 of the Pension Funds Act, allowing retirement funds to make long-term infrastructure investments. The amendment introduced a definition of infrastructure and set an upper investment limit of 45% for pension fund investments in such projects.
Additional regulatory adjustments have been made to support economic development, including separating investment limits for hedge funds and private equity. The ceiling for private equity assets has been raised from 10% to 15%, enabling greater investment in infrastructure.
During the Medium-Term Budget Policy Statement in October 2024, the Minister of Finance announced ongoing efforts to develop investment mechanisms that complement the Regulation 28 amendments. These mechanisms aim to simplify and incentivize institutional investment in infrastructure, with further details expected in the upcoming national budget on Wednesday, 12 March 2025.
