KwaZulu-Natal Sets Stage for Investment Surge with May Summit on Public-Private Partnerships

KwaZulu-Natal is setting the stage for renewed collaboration between the public and private sectors. On May 23, the provincial Treasury will host a much-anticipated summit aimed at exploring new opportunities through public-private partnerships (PPPs).

Francois Rodgers, Finance MEC, said the event will be a pivotal platform to unpack recent legislative changes and drive conversations around how private investors can play a greater role in building the provincial economy.

“This is one of the ingenuitive ways we believe the Government of Provincial Unity can encourage private investment,” Rodgers said.

The Government of Provincial Unity (GPU), formed through a coalition between the ANC, IFP, and DA, is looking to create a more enabling environment for PPPs. Rodgers emphasized that by engaging with the private sector, the province aims to build a more sustainable economy and create jobs.

The summit comes at a crucial time. Earlier this year, Finance Minister Enoch Godongwana announced amendments to National Treasury Regulation 16. These changes aim to streamline the approval process for PPPs—particularly smaller projects—making it easier for private players to get involved in infrastructure development.

“While the economic landscape has changed significantly, PPP legislation had not been updated in nearly 15 years,” said a Treasury spokesperson.

Despite the early promise of PPPs in South Africa, the number of new project transactions has declined over the past decade. According to National Treasury, total PPP project value dropped from R10.7 billion in 2011/12 to just R7.1 billion in 2022/23.

This decline highlights the importance of the upcoming summit, which is expected to serve as both a policy think-tank and networking event for investors, developers, and public officials.

The province is also exploring other innovative ways to boost revenue. Rodgers previously noted the potential of taxing online gaming and betting platforms as a new income stream—a move that could supplement provincial funding without placing further strain on taxpayers.

As KwaZulu-Natal prepares for the May 23 summit, all eyes will be on how the province uses this opportunity to reinvigorate PPP interest and catalyze long-term economic growth.

{Source: IOL}

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