The government’s 3 trillion rand infrastructure burden

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Tax payers’ money only won’t just suffice to tackle the bulk of the 3 trillion rand infrastructure programme, Finance Minister Nhlanhla Nene told businesses leaders.

“We, certainly, have to seek external funding to implement our programme,” revealed Nhlanhla.

The infrastructure development programme is expected to boost the country’s ailing economy, which is not growing at a sufficient rate to reduce unemployment, poverty and inequality.

The country’s credit rating has been downgraded by two global rating agencies, reflecting low investor confidence in the economy. This has been worsened by strikes cutting across in mining and motoring.

The government’s capacity to handle big infrastructure has come into question with the embarrassing bungling displayed in Eskom’s multibillion rand projects. In addition, the country lacks critical technical skilled personnel.

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