South Africa is set to introduce a credit-guarantee facility to spur private sector participation in its extensive infrastructure development initiatives. This move is designed to mitigate investment risks and stimulate capital inflow.
“We are aiming to manage the risks associated with projects and project sponsors to attract private sector financing,” stated Deputy Finance Minister David Masondo during an interview in London on Thursday. “The Credit Guarantee Vehicle is intended to bring in private sector capital for strategic infrastructure projects.”
The facility is a key component of the country’s strategy to boost infrastructure investment without placing undue strain on public finances. Further details on the initiative are anticipated when Finance Minister Enoch Godongwana presents the medium-term budget on October 30th.
