The South African government is signalling a decisive shift in how it finances and delivers major infrastructure, formally opening the way for deeper private-sector participation across the infrastructure value chain.
Presenting the Medium-Term Budget Policy Statement in Parliament, Finance Minister Enoch Godongwana announced a R2 billion allocation to capitalise the new credit guarantee vehicle CGV an instrument intended to unlock large-scale private investment in public infrastructure projects, beginning with the urgent expansion of the electricity transmission network.
Godongwana said the CGV represents real progress in moving beyond solely stabilising Eskom towards securing new power to the grid from a diverse range of sources. He described the vehicle as a key and innovative part of the infrastructure reforms developed in collaboration with international partners to de-risk private investment without requiring state guarantees.
