The CIDB has released the Construction Industry Recovery Plan (CIRP).
The CIRP enables a focus on the entire infrastructure delivery and maintenance value chain. The CIRP is a construction industry-wide plan focusing on the public and private sectors. South Africa has a strong core network of national economic infrastructure, yet investment in infrastructure has lagged over the past decade. In addition to reviving the construction sector, a significant infrastructure push will support the local manufacturing and other related sectors across the value chain, including steel.
To finance infrastructure at the scale required, the government must work with the private sector to deliver priority infrastructure projects. A list of 50 strategic infrastructure projects and 12 special projects was gazetted in July 2020 as the Strategic Integrated Projects (SIP). Capacity is being developed within Infrastructure SA and the Infrastructure Fund to prepare attractive projects for private investors, build capability for infrastructure delivery within the state, contain costs after project commencement, and develop appropriate funding models for blended finance. The Infrastructure Fund will provide R100 billion in blended finance over the next decade, leveraging as much as R1 trillion in new investment for strategic infrastructure projects.
Moreover, the government will resolve the policy constraints that hamper infrastructure development. Investment opportunities will be unlocked through the approval of credit-enhancing instruments, bulk infrastructure provision, speedy approvals of water use licenses, environmental impact assessments, and township establishment. Finally, in addition to effective project preparation and adequate finance, the security of assets and workers in the construction industry is paramount.
Click here to download the Construction Industry Recovery Plan.
