Wendell Roelf

South African municipalities will raise up to R20-billion to fund major infrastructure projects over the next three years, a National Treasury official said on Tuesday. South Africa is planning massive capital expenditure to help push economic growth to at least 6% by 2010 in an attempt to cut widespread poverty.

It is inevitable that poor countries will compete for donor aid, Tanzania’s President Benjamin Mkapa told delegates at the World Economic Forum’s Africa Economic Summit in Cape Town on Thursday. Steve Booysen, chief executive of Absa, said business has been slow to take advantage of the changing political landscape in Africa.

With Africa expecting $25-billion by 2010 if the Commission for Africa’s recommendations are implemented, Tanzania’s President Benjamin Mkapa said each country should be assessed individually to see if previous aid was misused. Mkapa was part of a panel that spoke on how aid can be allocated and used effectively.