State-owned enterprises drive new infrastructure funding

The country's public enterprises are gearing up to get South Africa better connected

South Africa's state-owned companies are playing a core role in the new growth plan. The Department of Public Enterprises, which supervises these companies, is working hard to create an efficient, competitive and responsive economic infrastructure network in line with its service delivery agreement signed in October 2010.

As it focuses on achieving the outputs contained in the agreement, there will be a huge emphasis on infrastructure development and in securing public private partnerships in order to successfully implement this development.

For Minister of Public Enterprises, Malusi Gigaba, it cannot come soon enough.

"The economy has been greatly robbed by under-investment in infrastructure," he said. "Had we invested over the last few years, we would be much further ahead and unemployment would be considerably lower.

"That said, any other society would have succumbed to social unrest but we are still benefiting from a strong community grounded in the ANC where people do not take out their anger on the party. That of course is something that should not be taken for granted.

"In the last few years, the grip of economic recession began to reach our shores, so investment and economic growth has largely been driven by SOE investments, such as Eskom, Transnet and a few others.

"The biggest challenge we needed to overcome, in terms of unemployment, was the decision to invest in more infrastructure and to say the state will play a role in the investment and in particular encouragement private investment.

"The critical aspect of the infrastructure programs we are rolling out is the actual implementation: let the construction begin, let the people get the jobs and feel the difference because in large measure, you will be breaking down the cycle of poverty and creating a new middle class.

"Our continent needs a champion and South Africa will engage internationally on Africa's behalf. Africa has a rising GDP, population and middle class which we can use as leverage and form a common vision to engage with our BRICS partners."

Flying the flag for Africa

South African Airways, SAA for short, is rising to the challenge of balancing commercial objectives and socioeconomic priorities.

As one of Africa's most recognizable airlines, SAA has been pivotal in spreading and contributing to wealth generation in sub-Saharan Africa. Although high fuel costs, strikes and competition have taken their toll on the flagship carrier, an efficiency drive and new routes are helping keep the airline buoyed.

As a representative of the airline acknowledged: "SAA is sitting right in the middle of the BRICS countries and it is part of SAA's business plan to offer the best connections to those needing to travel from Asia to South America. We are looking to penetrate both those markets."

The airline is proud to serve the Southern African Development Community, providing transport for the region that is safe, efficient, timely and reliable. It is also proud to transport more valuable cargo than any other airline on the continent. In order to overcome fuel and cost challenges, SAA is hoping to procure more efficient airplanes that need less technical maintenance and less fuel.

"It is only natural that as an airline we increase our footprint in Asia because that is the future," the spokesman said. "SAA sees its role as a business enabler, and as long as the transportation works, it makes business work and it encourages trade and business between countries."

Improving connectivity

Broadband Infraco is also connecting people, by stimulating private sector innovation in telecommunications services and content offerings. As the wholesale provider of choice for backhaul connectivity, BI plays a vital role in ensuring that the South African ICT sector remains modern and forward looking.

"As South Africans, we are well positioned - geographically we can easily connect to the east and the west," BI's CEO Puleng Sejanamane said. "From an ICT standpoint, we are able to offer a diversity that no other country on the continent can offer.

"We are also a nodal point for the SADC, so we can connect with any Chinese investor that wishes to do business with the rest of the continent. Our interest is focused on providing a solid platform for Chinese investors. They can benefit from partnerships with South Africa as we know the whole continent."

"Now is an opportune time to come to South Africa," the CEO said. "For those who have invested, the returns are worth it. It would be a missed opportunity not to come."

InFocus provided the story

(China Daily 03/26/2013 page18)