Government, through the Department of Public Enterprises, is driving infrastructure development in all sectors through a number of build programmes.  

Addressing the Johannesburg Chamber of Commerce and Industry, Public Enterprises Minister Lynne Brown said there is lots of scope for the private sector to get involved.

“It is clear that the private sector has a significant role to play in the infrastructure rollout partnering with state-owned companies. To coordinate and promote the public-private partnership, government has developed a Private Sector Participation Framework (PSP) that guides the investment of the private sector,” she said.

Transport sector

Opportunities in the transport sector for the private sector include partnering with Transnet in developing efficient and effective transport and logistic infrastructure.

Transnet capital expenditure, as outlined in its Market Demand Strategy, is approximately R336 billion focusing mainly on rail, pressure vessels and steel, among others.

Transnet is set to build 1 064 locomotives at a cost of R50 billion. The project will create over 6 300 jobs and benefit 55 small businesses.

To date, Transnet has spent R108.9 billion and the entity is expected to spend about R340 billion over the next decade on capex projects.

Energy sector

Minister Brown said it was crucial for the private sector to play a role in addressing the future electricity needs of the country.

“This will reduce the funding burden on government, relieve the borrowing requirements of Eskom and introduce generation technologies that Eskom may not consider as part of its core function.”

In the medium-term, government has prioritised that 3 725MW of renewable energy to be generated from renewable energy sources through the Independent Power Producer (IPP) Procurement programme.

The programme is a key vehicle for securing electricity capacity from the private sector using renewable energy sources and to stimulate the renewable industry in the country.

Minister Brown encouraged the private sector to submit projects that would require partnerships with SOCs.

“The benefits of partnering with state-owned companies include access to large and stable markets and exposure to greater business opportunities,” said Minister Brown.

Cabinet has also tasked Minister Brown’s department with developing a concept paper on a shareholder management model for state owned companies. The Minister said the elements of the concept paper will be released soon.

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