Nene urges private sector partisipation in infrastructure.
Category Development
Finance Minister Nhlanhla Nene has once again called on the private sector‚ who he says have the financial resources‚ to help African governments develop their infrastructure. Most African countries are still lacking when it comes to infrastructure such as roads‚ rail‚ buildings and telecommunications. Mr Nene addressed the Infrastructure Consortium for Africa annual meeting in Cape Town on Thursday. The limited resources and inability of many African governments to carry big financial burdens on their books provided “ample space” for cooperation with international partners and the private sector to implement infrastructure projects. Mr Nene said that Africa on average invested only 4% of its gross domestic product in infrastructure – very low compared to China’s 14%. He said the benefits of closing the infrastructure gap were very high‚ with some estimates showing that closing the gap could boost gross domestic product (GDP) growth by two percentage points a year. The Programme for Infrastructure Development in Africa (PIDA) developed by the African Union (AU) and the African Development Bank (AfDB) estimates that it will cost $360bn between 2011 and 2040 to implement infrastructure projects. SA is also implementing infrastructure development and has set up a task team on private sector financing of infrastructure to mobilise the private sector’s support. “Private sector participation and support through human and financial resources development‚ investment in infrastructure and technology transfer should be further encouraged and strengthened‚” Mr Nene said.
Author: SA Commercial Property
