South Africa outlines smart infrastructure financing plan

Deputy Minister of Finance Mr Ashor Sarupen announced South Africa’s smart infrastructure priorities and financing measures, including the establishment of a Credit Guarantee Vehicle (CGV) targeting an initial USD 500 million capital raise.

• Main announcement: The Deputy Minister outlined South Africa’s commitment to green and smart infrastructure, announcing the Credit Guarantee Vehicle (CGV) as a market enabler to provide credit enhancements for Independent Transmission Projects with an initial capital raise target of USD 500 million; he referenced the Just Energy Transition Investment Plan (JET-IP) 2023–2027 which estimates R1.5 trillion in investment needs across electricity, new energy vehicles, and green hydrogen, and said EUR 1.1 billion in concessional finance has already been secured from development partners.
• Background and implementation details: The speech framed these actions within the G20 Presidency theme “Solidarity, Equality, Sustainability,” cited the OECD estimate of a global infrastructure financing gap of USD 6.3 trillion by 2030 and an Africa annual gap of USD 130–170 billion, and noted South Africa is working closely with Multilateral Development Banks to use guarantees and credit enhancements to crowd in private capital.
  • Event: FIDIC Global Infrastructure Conference at the Cape Town International Convention Centre; agenda focus: Smart Infrastructure: Equality, Resilience and Innovation for a Sustainable World (no date/time provided in source).