Johannesburg – The Construction Management Foundation welcomes the announcement of a joint memorandum of understanding to establish the R100bn Infrastructure Fund by the National Treasury, Development Bank of Southern Africa and the newly established entity, Infrastructure South Africa (ISA) under the Department of Public Works and Infrastructure. This is an important step in transforming and improving the manner in which the South African government has traditionally financed, planned, and constructed infrastructure assets.
This comes at a critical juncture as South Africa sets out an infrastructure-oriented roadmap for economic recovery from the impact of the COVID-19 pandemic. “It is important that government fast tracks these projects to curb further decimation of the South African construction industry which expected to contract atleast by 8% in 2020”, said Ronnie Siphika, Chief Executive at Construction Management Foundation.
It will be important that focus is on improving the quality and reliability of the infrastructure pipeline.
The establishment of Infrastructure South Africa, to be led by Dr Kgosientsho Ramokgopa, has the potential to play a significant role of improving the quality of the pipeline and improving commercial viability of nationwide projects. “The institutional framework of the delivery of large and complex infrastructure projects have been recognised as a critical success factor by many governments around the globe and ISA stands a chance to fix the fragmented and broken institutional arrangement SA has been using since the dawn of democracy.” Mr Siphika further elaborated.
We look forward to witnessing what this newly formed institutional environment will achieve in meeting the government’s short-term objectives of utilising infrastructure to boost the economic growth.
Issued by the Construction Management Foundation NPC
For more information, contact Mr Ronnie Siphika, our Chief Executive on 079 135 9884 via email address on Ronnie.Siphika@cmfounation.org.za