[ad_1]
After six months of talking to the private sector and banking institutions, the government is now in talks with pension fund managers about a possible investment in infrastructure in the country, says Dr. Kgosientsho Ramokgopa, head of the Office of Investments and Infrastructure of the Presidency.
Speaking at the launch of the president’s infrastructure project preparation roundtable on Tuesday (Nov 3), Ramokgopa said that the country’s pension funds are sitting in a ‘large pool of liquidity’ and are now beginning to explore. investment in infrastructure as an additional asset class.
“Before, when we had conversations of this nature, pension funds were not on the table. Now they are on the table and they are part of the co-creation exercise, and we believe that by doing so we will be able to take advantage of that large pool of liquidity. “
Ramokgopa said that previous funds for infrastructure had been taken directly from the government portfolio, but that the impact of Covid-19 had led to a severely diminished treasury.
“Essentially, we need to look for new sources of funding. But for you to get projects financed off the government balance sheet, they have to be solid projects. “
These ‘strong’ projects are a key part of President Cyril Ramaphosa’s recovery plan for South Africa, with infrastructure and development identified as key to the country’s radical change.
“The damage caused by the pandemic to an already weak economy, employment, livelihoods, public finances and state enterprises has been colossal,” Ramaphosa told parliament in a presentation in October.
“We need to see this moment as a break with the past and an opportunity to drive fundamental and lasting change, putting the economy on ‘a new path to growth,'” he said.
These projects will also be key to creating job opportunities in the country, Ramaphosa said, and the government plans to create up to 800,000 new jobs.
The president said that infrastructure development has immense potential to stimulate growth in the country and create sustained employment, both directly and indirectly.
He said that at the end of June 2020, the country had 276 ‘catalyst projects’ which would contribute more than R340 billion in investment.
Read: The government wants to change the functioning of the police, security and neighborhood guards, but there are problems
[ad_2]
