- $5m facility to fast-track bankable infrastructure projects
- South Africa faces $83bn infrastructure investment gap by 2030
JOHANNESBURG, SOUTH AFRICA – South Africa has launched a $5 million (R87 million) facility with Afreximbank to accelerate preparation of infrastructure projects, aiming to attract private investment and close a widening funding gap.
South Africa’s infrastructure shortfall is projected to reach R1.6 trillion by 2030. Mametse Masemola, acting head of Infrastructure South Africa (ISA), said the new Joint Project Preparation Facility (JPPF) would enable more viable projects to reach the financing stage.
“This collaboration allows us to leverage Afreximbank’s project preparation grants and blend that funding with Infrastructure SA’s own allocations to support more catalytic projects of economic significance,” Masemola said.
Last year ISA received 277 proposals worth R8.4 billion but could only fund seven projects with its limited budget. The new facility, she added, expands the scope dramatically.
Continental ambitions
Deputy Minister Kenny Morolong said the initiative would strengthen regional integration. “We are not just building infrastructure for South Africa, we are strengthening a cornerstone for integrated growth across the African continent,” he said.
Public Works Minister Dean Macpherson called the deal a “vote of confidence” in South Africa’s ability to stimulate growth and jobs.
