This paper assesses South Africa’s massive infrastructure drive to revive growth and increase employment. After years of stagnant growth, this is now facing a deep economic crisis, exacerbated by the COVID-19 pandemic. This drive also comes after years of weak infrastructure investment, widening the infrastructure deficit. The plan outlines a R1 trillion investment drive, primarily from the private sector through the Infrastructure Fund over the next 10 years (Government of South Africa, 2020). This paper argues that while infrastructure development in South Africa is much-needed, the emphasis on de-risking for private sector buy-in overshadows the key role the state must play in leading on structurally transforming the economy.

Aldrete R, Bujanda A and Valdez GA (2012). “Valuing public sector risk exposure in transportation public-private partnerships”. Transportation Research Record: Journal of the Transportation Research Board, 2297(1): 88–96. https://doi.org/10.3141/2297-11

Attridge S and Engen L (2019). Blended Finance in the Poorest Countries (ODI Report April 2019). ODI.

Bayliss K (2016). Neoliberalised Water in South Africa (FESSUD Working Paper Series No. 204). Financialisation, Economy, Society and Sustainable Development (FESSUD), European Commission.

Bayliss K and van Waeyenberge E (2017). “Unpacking the public private partnership revival”. Journal of De-velopment Studies, 54(2): 1–17. https://10.1080/00220388.2017.1303671

Bayliss K, Dimakou O, Laskaridis C and van Waeyenberge E (2020). The Use of Development Funds for De-Risking Private Investment: How Effective is It in Delivering Development Results? European Parlia-ment.

Bhengu C (2020, October 16). “From jobs to the Covid-19 grant—Five key takeaways from Ramaphosa’s recovery plan”. TimesLive. https://www.timeslive.co.za/news/south-africa/2020-10-16-from-jobs-to-the-covid-19-grant-five-key-takeaways-from-ramaphosas-recovery-plan/

Bridgman G, van der Berg S and Patel L (2020). Hunger in South Africa During 2020: Results from Wave 2 of NIDS-CRAM (Working Papers 25/2020). Department of Economics, Stellenbosch University.

Calitz E and Fourie J (2010). “Infrastructure in South Africa: Who is to finance and who is to finance?” Devel-opment Southern Africa, 27(2): 177–191. https://doi.org/10.1080/03768351003740449

Colverson S and Perera O (2011). Sustainable Development: Is There a Role for Public-Private Partnerships? (IISD Policy Brief October 2011). International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/sust_markets_PB_PPP.pdf

Convergence Finance (n.d.). Blended Finance. Convergence Finance. https://www.convergence.finance/blended-finance

_____ (2019). The State of Blended Finance 2019. Convergence Finance.

Creamer T (2019, August 2). “Work won’t start on next phase of Mokolo-Crocodile transfer scheme until EIA appeal finalized”. Engineering News. https://www.engineeringnews.co.za/article/work-wont-start-on-next-phase-of-mokolo-crocodile-transfer-scheme-until-eia-appeal-finalised-2019-08-02

Davies R (2018, October 29). “Hammond abolishes PFI contracts for new infrastructure projects”. The Guardian. https://www.theguardian.com/uk-news/2018/oct/29/hammond-abolishes-pfi-contracts-for-new-infrastructure-projects

Department of Education of South Africa (2018). NEIMS Standards Report January 2018. Department of Edu-cation of South Africa. https://www.education.gov.za/Portals/0/Documents/Reports/NEIMS%20Report%20%2020172018.pdf?ver=2018-01-30-120305-787

European Network on Debt and Development (Eurodad) (2018). History RePPPeated—How Public-Private Partnerships are Failing. Eurodad. https://d3n8a8pro7vhmx.cloudfront.net/eurodad/pages/508/attachments/original/1590679608/How_Public_Private_Partnerships_are_failing.pdf?1590679608

Farlam P (2005). Assessing Public-Private Partnerships in Africa (Nepad Policy Focus Report No. 2). South African Institute of International Affairs. https://www.saiia.org.za/wp-content/uploads/2008/04/aprm_boo_farlam_ppps_2006.pdf

Financial and Fiscal Commission (2015). Submission for the Division of Revenue 2016/2017. Financial and Fiscal Commission. https://static.pmg.org.za/150923division.PDF

Flyvbjerg B (2016). “Introduction: The iron law of megaproject management”. In: Flyvbjerg B (Ed.), Oxford Handbook of Megaproject Management, pp. 1–20. Oxford University Press. https://doi.org/10.1093/oxfordhb/9780198732242.013.1

Gabor D (2019). Securitization of Sustainability: Does It Help Achieve the Sustainable Development Goals? Heinrich Böll Stiftung (Heinrich Böll Foundation). https://us.boell.org/sites/default/files/gabor_finalized.pdf

_____ (2020). The Wall Street Consensus. https://doi.org/10.31235/osf.io/wab8m

Government of South Africa (2020). The South African Economic Reconstruction and Economic Recovery Plan. Government of South Africa. https://www.gov.za/sites/default/files/gcis_document/202010/south-african-economic-reconstruction-and-recovery-plan.pdf

Griffiths J and Romero MJ (2018). Three Compelling Reasons Why the G20s Plan for an Infrastructure Asset Class is Fundamentally Flawed. European Network on Debt and Development (Eurodad).

International Monetary Fund (n.d.). South Africa. IMF https://www.imf.org/en/Countries/ZAF

Jooste R and Planting S (2020, January 31). “Laying down the foundation for pensions to fund infrastructure spend”. Daily Maverick. https://www.dailymaverick.co.za/article/2020-01-31-laying-down-the-foundation-for-pensions-to-fund-infrastructure-spend-2

Kemboi L (2021, August 15). “Works on Phase 2A Mokolo-Crocodile Water Augmentation Project stalls”. Con-struction Review Online. https://constructionreviewonline.com/news/south-africa/works-on-phase-2a-mokolo-crocodile-water-augmentation-project-stalls

Kenny C and Moss T (2020). What to Do When You Can’t Prove DFI Additionality. Centre for Global Devel-opment. https://www.cgdev.org/publication/what-do-when-you-cant-prove-dfi-additionality

Makhathini MSM, Mlambo V and Mpanza S (2020). “Infrastructure provision as a catalyst for local economic development in South Africa”. Strategic Review for Southern Africa, 42(1): 99–122. https://doi.org/10.35293/srsa.v42i1.198

Makovšek D (2018). Mobilising Private Investment in Infrastructure: Public Financial Support and Uncertainty (Working Group Discussion Paper). International Transport Forum. https://www.itf-oecd.org/sites/default/files/docs/mobilising-private-investment-infrastructure.pdf

Manga T (2019, June 12). “Infrastructure development: What, why, how and who?” Futuregrowth. https://futuregrowth.co.za/newsroom/infrastructure-development-what-why-how-and-who/

Müller J (2015). Harnessing Private Finance to Attain Public Policy Goals? How Governments Try to Involve the Private Sector in Times of Austerity and What Risks This Entails. Stichting Onderzoek Multinationale Ondernemingen (Centre for Research on Multinational Corporations).

National Planning Commission (2011). National Development Plan: Vision for 2030. National Planning Com-mission, Republic of South Africa. https://www.gov.za/sites/default/files/gcis_document/201409/devplan2.pdf

National Treasury (2004). South African Treasury Regulation 16. National Treasury, Republic of South Africa.

_____ (2018). Medium Term Budget Policy Statement 2018. National Treasury, Republic of South Africa.

_____ (2019). Budget Review 2019. National Treasury, Republic of South Africa.

_____ (2020a). Medium Term Budget Policy Statement 2020. National Treasury, Republic of South Africa. http://www.treasury.gov.za/documents/mtbps/2020/mtbps/FullMTBPS.pdf

_____ (2020b). Budget Review 2020. National Treasury, Republic of South Africa. http://www.treasury.gov.za/documents/national%20budget/2020/review/FullBR.pdf

National Treasury, Department of Public Works and Infrastructure, Infrastructure South Africa, and Development Bank of Southern Africa (2020). Memorandum of Agreement: DBSA’s Mandate to Establish and Manage the Infrastructure Fund [Joint media statement]. National Treasury, Republic of South Africa.

Organisation for Economic Co-operation and Development (OECD) (n.d.). Blended Finance. OECD https://www.oecd.org/dac/financing-sustainable-development/blended-finance-principles

_____ (2012). Infrastructure Financing Instruments and Incentives. OECD. http://www.oecd.org/finance/private-pensions/Infrastructure-Financing-Instruments-and-Incentives.pdf

_____ (2014). Pooling of Institutional Investors Capital—Selected Case Studies in Unlisted Equity Infrastructure. OECD. https://www.oecd.org/finance/OECD-Pooling-Institutional-Investors-Capital-Unlisted-Equity-Infrastructure.pdf

_____ (2015a). Fostering Investment in Infrastructure: Lessons learned from OECD Investment Policy Reviews. OECD. https://www.oecd.org/daf/inv/investment-policy/Fostering-Investment-in-Infrastructure.pdf

_____ (2015b) Blended Finance Vol. 1: A Primer for Development Finance and Philanthropic Funders. OECD. http://www3.weforum.org/docs/WEF_Blended_Finance_A_Primer_Development_Finance_Philanthropic_Funders.pdf

____ (2018). Making Blended Finance Work for the Sustainable Development Goals. OECD.

_____ (2018b). The Next Step in Blended Finance: Addressing the Evidence Gap in Development Performance and Results (Workshop Report). OECD. https://www.oecd.org/dac/financing-sustainable-development/development-finance-topics/OECD-Blended%20Finance-Evidence-Gap-report.pdf

Oxfam (2014, April 7). A Dangerous Diversion. Will the IFC’s Flagship Health PPP Bankrupt Lesotho’s Ministry of Health? (Oxfam Briefing Note). Oxfam. https://oi-files-d8-prod.s3.eu-west-2.amazonaws.com/s3fs-public/file_attachments/bn-dangerous-diversion-lesotho-health-ppp-070414-en_0.pdf

Pereira J (2017). Blended Finance: What It Is, How It Works and How It Is Used (Oxfam Research Report February 2017). Oxfam International. https://oxfamilibrary.openrepository.com/bitstream/handle/10546/620186/rr-blended-finance-130217-en.pdf?sequence=1

Phalatse S (2020). Eskom: Roots of a Crisis and Avenues for Way Forward (IEJ Working Paper). Institute for Economic Justice.

Reboredo R (2019). “A panacea for development? Megaprojects and the construction of state legitimacy in post-apartheid South Africa”. African Geographical Review, 38(3): 240–252. https://doi.org/10.1080/19376812.2019.1589734

Robbins G (2004). A Water Sector Public-Private Partnership Case Study: Ilembe District Municipality (Formerly Dolphin Coast)—Siza Water Company (Research Report 63). University of Kwazulu-Natal. http://sds.ukzn.ac.za/files/RR63.pdf

Romero M (2015). What Lies Beneath? A Critical Assessment of PPPs and Their Impact on Sustainable Devel-opment. Eurodad. https://d3n8a8pro7vhmx.cloudfront.net/eurodad/pages/167/attachments/original/1587578891/A_critical_assessment_of_PPPs_and_their_impact_on_sustainable_development.pdf?1587578891

Sfakianakis E and van de Laar M (2012). Assessing Contingent Liabilities in Public-Private Partnerships (PPPs) (UNU-MERIT Working Papers). United Nations University; Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

Statistic South Africa (2020, September 29). SA Economy Sheds 2,2 Million Jobs in Q2 but Unemployment Levels Drop. Statistic South Africa. http://www.statssa.gov.za/?p=13633

Thomas DP (2013). “The Gautrain project in South Africa: A cautionary tale.” Journal of Contemporary African Studies, 31(1): 77–94. https://doi.org/10.1080/02589001.2013.747292

United Nations (2017). Financing for Development: Progress and Prospects (Report of the Inter-Agency Task Force on Financing for Development 2017). United Nations. https://developmentfinance.un.org/sites/developmentfinance.un.org/files/Report_IATF-2017.pdf

_____ (2020). The Other Infrastructure Gap: Sustainability – Human Rights and Environmental Perspectives. Office of the United Nations High Commissioner for Human Rights; Heinrich Böll Stiftung (Heinrich Böll Foundation).

United Nations Conference on Trade and Development (UNCTAD) (n.d.). What are PPPs? UNCTAD. https://investmentpolicy.unctad.org/pages/27/what-are-ppps

_____ (2019). Trade and Development Report 2019: Financing a Global Green New Deal. UNCTAD. https://unctad.org/system/files/official-document/tdr2019_en.pdf

Venter I (2020, August 18). “PPP legislation being reviewed to ‘make it more workable’, says De Lille”. Engi-neering News. https://www.engineeringnews.co.za/article/ppp-legislation-being-reviewed-to-make-it-more-workable-says-de-lille-2020-08-18/rep_id:4136

Vorisek D and Yu S (2020). Understanding the Cost of Achieving the Sustainable Development Goals (Policy Research Working Paper No. 9164). World Bank. https://doi.org/10.1596/1813-9450-9164

World Customs Organization (2018). Illicit Financial Flows via Trade Misinvoicing (Study Report 2018). World Customs Organization. http://www.wcoomd.org/-/media/wco/public/global/pdf/media/newsroom/reports/2018/wco-study-report-on-iffs_tm.pdf?la=en