Although South Africa has taken meaningful steps to invest in infrastructure projects, Deputy Minister of Finance Dr David Masondo said the country could not afford to financially support the amount of investment required for climate-resilient infrastructure.
“Therefore, we need to discuss other innovative financing mechanisms such as green bonds and carbon credits to finance these climate-resilient infrastructure projects,” Masondo said in Johannesburg on Monday.
He made these remarks during the second round of the Southern Africa – Towards Inclusive Economic Development (SA-TIED) policy dialogue series entitled ‘Financing infrastructure development in the context of climate change’.
“South Africa is feeling the negative effects of climate change in critical sectors such as agriculture, water and energy. We feel the frequency and impact of natural disasters every day in our country.
“Investing in renewable energy sources, water-saving systems and sustainable urban development are key to mitigating and adapting to climate impacts,” the Deputy Minister said.
Mr Masondo said the Infrastructure Fund is a testament to South Africa’s commitment to stimulate infrastructure investment and blend public and private finance to build a better and more sustainable future.
“The Infrastructure Fund stands out as a vital initiative aimed at stimulating investment across a range of critical sectors. This approach aims to mobilize public and private resources, reduce risks for private investors and foster an environment in which collaborative financing models can thrive.”
“Such measures are part of a broader effort to ensure that infrastructure development not only supports South Africa’s immediate economic needs, but also lays the foundations for long-term resilience and progress.
“Yes, there are challenges such as securing funding. But ensuring sustainability and integrating the latest technology are even more challenges. These challenges should be seen as opportunities for innovation and forging strong public-private partnerships. This is also an opportunity to harness the power of technology in infrastructure development goals,” Masondo said.
He said the groundbreaking research delivered by the SA-TIED program has highlighted important sectors such as water and energy and the extensive connections between them.
“It is this type of research that directly shapes our infrastructure strategy and informs decisions to maximize impact and create the conditions for sustainable growth. This type of research informs our policy decision-making.
He said infrastructure development is the cornerstone of economic prosperity.
“Infrastructure increases productivity (for example, people arrive late for work because of poor public transportation). Infrastructure also improves the quality of life of the population (clean air and clean water are important for health) and lays the foundation for long-term growth.”
“Our government recognizes this. We have made significant investments in critical infrastructure. These investments are not just about roads and bridges. They are about creating jobs, reducing poverty and making South Africa a competitive player in the global economy,” the Deputy Minister said. – SAnews.gov.za
