SA positions itself
to attract investment
President Cyril Ramaphosa says government has prioritised
several key reforms aimed at attracting investment into minerals and petroleum
exploration, tourism and agriculture.
The President said this during a question and answer session
in the National Assembly on Tuesday.
ANC MP Bhekizizwe Radebe had asked the President what
government would do differently -- in light of his announcement of the stimulus
package that highlights the setting up of an Infrastructure Fund -- to attract
investment in these sectors.
“Government has prioritised a number of key reforms in these
sectors to ensure policy certainty.
“The revised Mining
Charter has been finalised. This is the outcome of extensive and meaningful
consultation between government, community, labour and business, and it
represents evidence of our commitment to solving the challenges in the sector
collaboratively,” President Ramaphosa said.
In agriculture, the President said government will finalise
the signing of 30-year leases to enable farmers to mobilise funding for
“These are among the
areas where progress is being made to remove all the obstacles to increased
investment and to make more effective use of our public resources to promote
growth and job creation,” he said.
The President said the economic stimulus and recovery plan
announced on 21 September outlined decisive steps to rebuild investor
confidence and mobilise investment to unlock the growth potential of the South
He said the plan
recognises that infrastructure expansion and maintenance is a critical driver
of economic activity and has the potential to create a large number of jobs.
setting up an Infrastructure Fund to manage its infrastructure expenditure,
which has been budgeted at R400 billion over the MTEF [medium term expenditure
framework] period, and to focus on more effective execution.
“In addition to this
budgeted funding, State-owned enterprises will continue to invest in new
energy, transport and water infrastructure.”
Government eyes key partnerships with private sector
The President said,
meanwhile, that government is looking at building meaningful partnerships with
the private sector to design the Infrastructure Fund and oversee project
Fund is aimed at reducing fragmentation in infrastructure spend and will work
with the Presidential Infrastructure Coordinating Commission to strengthen
coordination and improve delivery.
“We will draw on
individuals with a range of experience in the delivery of large projects,
including established project management and engineering expertise.
Fund will develop a strong pipeline of bankable projects, improve project
design, prioritise projects effectively and strengthen the capacity of existing
institutions tasked with project implementation.
“National Treasury is
exploring the possibility of establishing blended concessional finance
solutions to mobilise private and public sector funding,” the President said.
He said opportunities to draw institutional investors,
including pension funds, into infrastructure spending is also being explored.
“We will draw on the
Presidential Infrastructure Co-ordinating Committee (PICC), Government
Technical Advisory Centre, the Development Bank of Southern Africa and others
to provide technical assistance at project development and oversight stage.
“Both the economic
stimulus and recovery plan and the framework agreement adopted at the recent
Presidential Jobs Summit identified agriculture, mining and tourism as sectors
with significant potential for job creation.”