/ 23 September 2016

Investment projects ramped up

Fixed line: Transnet has confined a R800-million IT tender to a single company.
Fixed line: Transnet has confined a R800-million IT tender to a single company.

The state’s economic cluster is preparing to implement 40 high-impact investment projects, 10 of which will be fast-tracked.

They are linked to a nine-point plan to re-energise the economy, which was announced in the president’s State of the Nation address in February and includes encouraging private sector investment, moderating workplace conflict and revitalising agriculture and agro-processing.

The top projects under consideration for implementation in the next two years include introducing an AB InBev agricultural project for barley and hops and building the agro-supply chain in four provinces, establishing a Clover industrial park to grow the dairy industry and value chain, establishing a development zone for abalone farming, and developing a Transnet offshore supply base.

“This is certainly one of the areas that the fin min [finance minister] is going to be punting to investors and rating agencies in the coming weeks,” said Jeffrey Schultz, an economist at BNP Paribas Securities South Africa.

“As we know, rating agencies in particular want to see tangible evidence of structural reforms being implemented.”