South Africa’s government has unveiled a plan to galvanize 2.3 trillion rand ($133 billion) in new infrastructure investment over the next decade that could create more than 1.8 million jobs and revive an economy battered by the coronavirus pandemic.
Gross domestic product is expected to contract at least 7% this year and the advent of the disease has made the need for the investment all the more urgent, President Cyril Ramaphosa told a conference in Pretoria, where the plan was released.
It’s won backing from development finance institutions and ground needs to be broken as soon as possible, he said in a report by Bloomberg.
“We have placed infrastructure at the center of the stimulus our economy needs to achieve a sustainable recovery,” Ramaphosa said.
Read Also: https://businessday.ng/exclusives/article/nbs-data-to-show-gdp-declined-6-in-q2-2020/
“In the long run, infrastructure investment increases the capacity of the economy, reducing the cost of transport and the capacity and reliability of key services like electricity and municipal services.”
The government imposed one of the world’s most severe lockdowns in late March to slow the spread of the coronavirus.
The curbs that shuttered most businesses have since been eased, but bankruptcies and job losses have continued unabated, while confirmed infections have surged past the 100,000 mark.
Ramaphosa previously announced a 500 billion-rand package to shore up the economy, but has said that won’t be enough to reignite economic growth.
Currently 276 housing, energy, transport, water and other projects are under consideration, and funding has already been secured for 55 of them, according to a copy of the plan.
Public Works Minister Patricia de Lille said opportunities will be created to invest in green technology and confirmed that the government was considering introducing green infrastructure bonds.
