Government is considering selling a green infrastructure bond worth tens of billions of rand as part of its biggest drive ever to kick-start private investment in projects ranging from energy to water reticulation.
The proposed instrument is one of several mechanisms the country could use to raise finance for projects worth as much as R1.5-trillion over the next decade, said Kgosientsho Ramokgopa, head of the presidency’s investment and infrastructure office.
As many as 88 of the 272 infrastructure projects in the pipeline may be bankable, while the rest need additional work and some may not prove viable
The infrastructure programme will be officially unveiled at a symposium in Pretoria on Tuesday, where President Cyril Ramaphosa will announce investment commitments by private investors and international finance institutions.
The government could use the infrastructure fund to make the first investment in key projects to reduce risk for private investors, Ramokgopa said.
As many as 88 of the 272 infrastructure projects in the pipeline may be bankable, while the rest need additional work and some may not prove viable, according to Ramokgopa.
