Infrastructure as an asset class plays a dual role in building the economy by reducing the costs of doing business and by directly contributing to the economy. For South African businesses to grow and thereby grow the economy, the country must reduce the cost of doing business, and infrastructure plays a role in achieving this, said Finance Deputy Minister Dr David Masondo on March 19, in Westcliff, Johannesburg.
The National Treasury has officially launched a R54-billion performance-based grant in a bid to increase investments in water, sanitation, electricity and waste infrastructure services by the country’s eight metropolitan municipalities, or metros. Known as the Metro Trading Services Reform, the performance-linked incentive aims to mobilise more than R100-billion in infrastructure investment over the coming six years, with recipient municipalities required to match the infrastructure grants with their own revenues and borrowings.
In this article, EE Business Intelligence MD Chris Yelland writes that a legal dispute now before the courts highlights a rapidly emerging fault line in South Africa’s energy transition: intensifying competition among renewable energy developers for scarce grid connection capacity.