The Infrastructure Development Act is, without doubt, the special vehicle required to meet the government’s infrastructure objectives, write Nikita Lalla and Ricardo Pillay
The Infrastructure Development Act is, without doubt, the special vehicle required to meet the government’s infrastructure objectivesPresident Cyril Ramaphosa’s message to the infrastructure sector in 2018 was hopeful: infrastructure investment was critical for economic growth, job creation, service delivery and small business empowerment. We saw a commitment to investing in new roads, power stations and schools.
The president identified a number of reasons that slowed down the provision of infrastructure. Infrastructure initiatives were fragmented and not fully integrated. This was most notable within different government spheres where there was a lack of cohesion. In a bid to address these problems, the cabinet announced the adoption of a new infrastructure implementation model, which would be underpinned by the new infrastructure fund .
A major area of concern was the technical capacity in government to ensure project delivery. The president committed to strengthening this to ensure that projects moved faster. We would see a key focus on the roles of engineers, project managers, spatial planners and quantity surveyors, as “action teams” to fast track project delivery.
A potential area of growth was harnessing the potential of the country’s oceans to grow the economy. Since launching Operation Phakisa on the oceans economy in 2014, the president confirmed investments of nearly R30bn, which created more than 7,000 direct jobs. The investments were mainly in infrastructure development, marine manufacturing, aquaculture, and the oil and gas sector. The president expected investment in the oceans economy over the next five years at about R3.
Although this sounds hopeful, it raises questions about whether the government is prioritising infrastructure development within existing legal structures and frameworks. Every year we hear commitments to prioritising infrastructure development. Promises of “new models” are made, and foreign investment is seen as the great white hope for infrastructure needs.
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