Deputy Finance Minister David Masondo has assured the steel and engineering sector of concerted efforts by the government to aid industry recovery efforts through unravelling red tape in state-sponsored infrastructure projects, a higher build budget, and additional tax drives to shield the fiscus from extensive commitments.
Speaking at the Steel and Engineering Industries Federation of Southern Africa (Seifsa) annual conference yesterday, Masondo just weeks ahead of the Medium-Term Budget Policy Statement (MTBPS) said planned infrastructure budgets were set to grow by 4.9% over the medium term, with a focus on energy and transport, as well as the introduced revised public-private partnerships (PPPs) regulations aimed at simplifying the rules governing PPPs.
Masondo said this included a differentiated and simplified approach for smaller projects, reducing administrative burdens, and streamlining mechanisms for unsolicited proposals.
These changes will make it easier for the private sector to participate in infrastructure projects, ultimately improving delivery outcomes in the energy sector, he said.
We are working with the International Finance Corporation (IFC) to explore options for off-balance sheet financing, a strategy that will accelerate private-sector investment in transmission projects. A pilot project is already in the works, and this initiative will be a blueprint for how we leverage private-sector resources to meet our infrastructure needs.
