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South Africa is not immune to the volatile global economic conditions, including the prevalent policy uncertainty currently sweeping through the globe affecting even the most established economies. Investment into infrastructure will however assist the country in creating jobs and boost its economy.
Speaking during his Presidency Budget vote speech in Parliament, President Cyril Ramaphosa said his government will work hand in clove with the private sector in developing the economy of the country. He said investing in infrastructure is a priority for government and strides are being made to ensure that it becomes a flying wheel of economic growth.
“We are using the Infrastructure Fund to invest in the roads that link communities to economic centres and the water projects that supply expanding cities and towns. We have amended the regulations for Public Private Partnerships to make it easier for the private sector to invest in infrastructure ranging from renewable energy generation to housing.
This infrastructure has a direct impact on people’s lives, providing the services they need, reducing the cost of living, improving the business environment and encouraging economic activity. We are following through on our commitment to invest more than R1 trillion in infrastructure over the next three years to renew our country’s roads, port, rail, energy and water systems,” said President Ramaphosa.
Ramaphosa said South Africans benefit when the economy grows, when jobs are created, when established industries expand and new industries emerge.
In order to promote domestic economic activity, President Cyril Ramaphosa says his government is looking into repositioning industrial policy to look at opportunities in diversification, decarbonisation and digitalisation.
“That is why we are redirecting our development finance institutions to be active investors in emerging industries and introducing tax incentives for new energy vehicles from next year. We are pursuing the Critical Minerals and Metals Strategy recently approved by Cabinet to ensure that the country’s mineral wealth creates jobs and produces value here in South Africa.
Our National Policy on the Commercialisation of Hemp and Cannabis aims to improve the livelihoods of people living in rural areas, targeting 10 percent annual growth in this emerging industry,” said Ramaphosa.
