GAP Infrastructure Corporation (GIC), South Africa’s largest social infrastructure developer, has confirmed that it has raised more R616 million in private investment to accelerate the country’s social and public infrastructure development.
According to GIC CEO Roelof van den Berg, this feat underscores an important move towards plans to tackle public infrastructure challenges while supporting the government’s efforts to close the infrastructure gap.
In 2022, a Wits University report indicated that South Africa’s rail and road infrastructures are on the verge of collapse with the report saying the country does not have a functioning integrated public logistics infrastructure anymore, as rail, roads as well as the ports are all in disarray.
Van den Berg revealed that these and many other challenges have inspired GIC to seek private partnerships, resulting in their efforts to kick things off.
“This marks a great milestone for both our company and the country, as it represents one of the very few occasions where private funding has been raised to assist in delivering social infrastructure programmes in South Africa,” he said in a statement.
“The infrastructure backlog is not just a government problem, it’s also the responsibility of the private sector to join hands in solving the infrastructure challenges facing this beautiful country.”
Van den Berg said innovative funding models are needed if the country is to overcome its infrastructure challenges as the country needs more than R6 trillion to overcome its problems.
“Infrastructure development has been named a national priority to accelerate economic growth and job creation, especially given the vast need for essential services. An investment of between R4.8 trillion and R6.2 trillion is required to meet the country’s Sustainable Development Goals by 2030, particularly targeting transport, water and sanitation, and education.
“These sectors are critical for socio-economic development and improving the quality of life in communities across the country,” he said.
Revenue generation has been seen as the biggest obstacle to the country’s woes which GIC has recognised and tried to overcome.
“GIC’s approach is groundbreaking because it aligns financial incentives with broader socio-economic benefits. Our goal is to set a new precedent in how social infrastructure can be financed in South Africa by offering more secure and structured investment opportunities,” Van den Berg said.
As a result of this approach to infrastructure funding, GIC said this will also help in social impact and job creation endeavours.
“GIC’s projects aim to uplift underserved areas, introducing much-needed infrastructure such as schools, healthcare facilities, and water systems, which in turn contribute to the socio-economic development of these regions.”
Olebogeng Manhe, chairperson of GIC, said: “With this R616 million, GIC will be able introduce a new blueprint for social investment that places the best interests of our people at the forefront, with a focus on changing lives, creating impactful job opportunities, and improving many people’s quality of life. We are committed to building a future where everyone can benefit from sustainable development, and this is a significant step toward achieving that goal.”
The Star