Construction World October 2020

COMMENT

In June, in an economically dark and uncertain time for South Africa, President Cyril Ramaphosa’s inaugural Sustainable Infrastructure Development Symposium South Africa (SIDSSA) was held. At the time 276 projects were identified that will (hopefully) start transforming and resurrecting South Africa’s embattled construction sector and indirectly, the South African economy.

T hese 276 projects in the SIDSSA have a combined value of R2,3-trillion. However, identifying projects that have the potential to revitalise is one thing – getting the actual process of infrastructure projects underway has so far been South Africa’s Achilles’ heel. In September Infrastructure Minister, 3DWULFLD GH /LOOH FRQͤUPHG WKDW D VLQJOH HQWU\ point will be created for this Infrastructure Investment Plan. The entity will be called Infrastructure South Africa (ISA). South Africa currently spends around 5,8% of its gross domestic product on infrastructure and the National Development Plan: Vision 2030 aims to increase this to 10%. The 276 projects create an infrastructure pipeline that will, if it does not stay mere wishful thinking on paper, put South Africa’s construction sector and the economy back on track. It is now even more important as it is predicted that the construction sector is set to contract by some 14% year-on-year. It will also account for most of the job losses caused by the COVID-19 pandemic.

The ISA will work closely with the Department of Public Works and

System (SIDS) which will stop the practice where infrastructure development is viewed as transactional. Instead, said De Lille, there will now be a concerted effort to identify, evaluate and implement workable infrastructure so as to ensure that projects are bankable. All this relates to the COVID-19 pandemic. Amongst the massive negative impact it had, the one positive is that it seems that Government is VHHNLQJ WR XUJHQWO\ ͤQG ZD\V IRU workable and executable systems for the construction sector.

Infrastructure and will be responsible for SURMHFW SUHSDUDWLRQ SDFNDJLQJ ͤQGLQJ funding pathways while it will provide strategic oversight over all gazetted projects. The ISA is also hoping to improve the longer-term pipeline: it is in the process of conceptualising and drafting a 25-year National Infrastructure Plan to provide direction for the longer-term in the government’s built environment policies. New methology The Department of Public Works and Infrastructure has been on a drive to execute reforms to revive infrastructure LQYHVWPHQW 2QH RI WKHVH LV WKDW ͤQDQFLDO institutions need to see a credible pipeline of infrastructure project that are ready to be implemented and invested in. These reforms have now resulted in the Sustainable Infrastructure Development

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CONSTRUCTION WORLD OCTOBER 2020