During the Sustainable Infrastructure Development Symposium South Africa (SIDSSA), held on Monday, Mameetse Masemola, Acting Head of Infrastructure South Africa (ISA), revealed that approximately $5.7 trillion is needed to bridge South Africa’s infrastructure investment gap by 2050.
Masemola provided updates on projects led by ISA since its establishment in 2020, emphasizing the agency’s efforts to promote cooperation between the public and private sectors and expedite infrastructure development during a media briefing.
SIDSSA, occurring from March 17-19 at the Century City Conference Center, serves as a critical platform for driving infrastructure development in South Africa and across the continent. The event facilitates discussions and partnerships in the infrastructure investment landscape, focusing on accelerating economic activity through strategic infrastructure plans. Energy Capital & Power, the leading investment platform for the African energy sector, is a media partner for SIDSSA. For further details, visit https://sidssa.org.za/.
“Our mandate is to close the infrastructure investment gap… We ensure projects are viable and bankable to attract funding from global investors. We work closely with authorizing departments to ensure fast rollout of projects, while ensuring the projects meet local regulations,” explained Masemola.
ISA has spearheaded projects across various sectors, including ICT, energy, water and sanitation, transport, and human settlements, experiencing significant growth in recent years.
“These sectors support economic growth and enable South Africa to be competitive globally. Most projects were in their early stages in 2020, valued at R230 billion, but have since grown to over R500 billion,” Masemola noted.
In the energy sector, 95% of projects have been privately led, including renewable energy initiatives under South Africa’s Renewable Independent Power Producer Program (REIPPP), Embedded Generation Program, and Just Energy Transition Program. Notably, 25 projects are under construction under Bid Window 5 of REIPPP, with five reaching financial close and an estimated creation of 14,000 jobs.
In transportation, 15 projects have been announced, with six valued at R25 billion currently under development. ISA has achieved success in the human settlement sector, with over 9,000 units constructed and 38,000 jobs created since 2020.
Regarding ISA’s project pipeline, Masemola revealed that the agency has secured R600 million from South Africa’s treasury for investments over the next three years, with 31 projects currently in preparation.
What do you think?
The successful financing close is an acknowledgment of the project’s potential to positively impact the environment and contribute to a sustainable future. The support of investors and stakeholders is a resounding endorsement of the company’s vision and dedication to creating a better future for generations to come.