Business Leadership South Africa (BLSA) has raised concerns over government’s involvement in several infrastructure projects across the country, saying it does not believe the state has the funding for it.
This after President Cyril Ramaphosa announced in his State of the Nation Address (SONA) that a number of economic reforms aimed at resuscitating the economy following the negative financial implications of the coronavirus pandemic.
Ramaphosa says government’s R100-billion infrastructure fund is in full operation, including projects on student housing, broadband to schools and hospitals.
BLSA CEO, Busi Mavuso, says the private sector is willing to be involved in the projects.
“We are concerned over the reality that there is a continued decline in infrastructure spending across the public sector. Let’s appreciate that government’s pockets are not deep enough to drive the infrastructure spending. So we don’t understand the insistence of government and spending being central to the spending initiative. They won’t be able to make it happen as we don’t have the fiscus to make it happen.”
President Cyril Ramaphosa delivers SONA 2021:
Source: SABC News (sabcnews.com)