“Overall, the public sector is projected to spend R903bn on infrastructure over the medium term. The largest portion of this, around R448bn, will be spent by state-owned companies, public entities and through public-private partnerships,” he said.
Godongwana said spending will mainly be focused on strategic projects in transport and logistics at some R351.1bn and water and sanitation coming in at R132.5bn.
The minister added that, simultaneously, government is “looking at initiatives to leverage private sector resources in public infrastructure delivery” in order to “strengthen state capacity to expand infrastructure delivery and to catalyse private finance”.
“The interventions … need to be complemented by a policy environment that promotes the performance of productive sectors in an integrated way. This will require difficult but necessary trade-offs to ensure that the appropriate support is properly targeted at the correct products and value chains,” Godongwana said.
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