Investment in road infrastructure will unlock growth

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Addressing the Select Committee on Economic and Business Development in Parliament on Wednesday, Deputy Minister Sindisiwe Chikunga also said integrating all forms of transport was key to economic growth.

"We believe that we are part of the economic development infrastructure departments and we believe that our road infrastructure networks have the potential to unlock the economic potential [of the country] in the rural areas in particular, but in South Africa generally," she said.

The deputy minister also said the department tabled the National Transport Master Plan at the end of the second quarter of the 2013/14 financial year, which Cabinet has since referred to the Inter-Ministerial Committee for consultations with the Presidential Infrastructure Coordinating Commission (PICC).

The deputy minister said the master plan seeks to integrate different modes of transport, with the aim of bolstering economic activity and eventually growth.

She said in line with President Jacob Zuma's pronouncement during his State of the Nation Address last month, her department would also create a space for the private sector to participate and be part of every decision that the department will take going forward.

The deputy minister also said special attention needed to be given to public transport, particularly the taxi industry, as it contributes to growth and job creation annually.

"We believe that through road transport, we also need to unlock the potential of the taxi industry as it contributes R40bn to the gross domestic product (GDP) per annum and about 300,000 jobs.

"We believe that this is an industry that needs attention and needs to be developed and formalised. We will therefore be looking into that," she said.

Deputy Minister Chikunga said with the department's budget not able to fund road infrastructure development, there was a need for government to come up with funding models.

"We have to find a way and actually begin to discuss the issue of funding models for infrastructure development, particularly road infrastructure development.

"We believe that this is a discussion that all of us need to participate in so that we do not just criticise when different funding models are introduced but we are able to say that this is the best effective funding model for our infrastructure development," she said.