Deputy Minister of Finance Dr. David Masondo said on Monday that the fiscus cannot afford to provide financial support for the amount of investment needed for climate-resilient infrastructure.
Masondo was speaking at the Southern Africa - Towards Inclusive Economic Development (SA-TIED) policy dialogues in Johannesburg.
According to the government, the talks are part of South Africa’s bid to make better steps to invest in infrastructure.
Masondo called for other innovative financing mechanisms such as green bonds and carbon credits to fund climate-resilient infrastructure projects.
He noted the negative impact of climate change on the state and said that it was especially felt in sectors such as agriculture, water, and energy.
“The frequency of natural disasters and the results thereof are felt every day in our country. We feel the negative impact of climate change in important sectors such as agriculture, water, and energy. The frequency of natural disasters and the results thereof are felt every day in our country,” the deputy minister said.
He called for investments in renewable energy sources, water conservation systems, and sustainable urban development.
Masondo explained that investments in these sectors are key to mitigating and adapting to climate impacts.
Stimulating SA’s infrastructure
Masondo argued that the Infrastructure Fund will assist SA’s commitment to stimulating infrastructure investment and blending public and private financing to build a more sustainable future.
“The Infrastructure Fund stands out as a pivotal move, designed to stimulate investment across various critical sectors. This approach seeks to mobilise public and private resources, mitigate risks for private investors and foster an environment where collaborative financing models can thrive.”
“Such measures are part of a broader effort to ensure that infrastructure development not only supports South Africa's immediate economic needs but also lays the groundwork for long-term resilience and progress,” he emphasised.
The minister acknowledged that there are challenges in securing funding and implementing the latest technology but said these should be seen as opportunities.
“Yes, challenges exist such as securing funding. However, ensuring sustainability, and integrating the latest technologies are other additional challenges. These challenges should be treated as opportunities for innovation and forging robust public-private partnerships. This is also an opportunity for leveraging the power of technology in our infrastructure development goals,” Masondo concluded.
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