South Africa plans insurance vehicle for infrastructure projects

South Africa is launching a credit-guarantee facility to boost private sector involvement in the country’s ambitious infrastructure investment plans, reducing the need for public spending. “We are looking to manage levels of risk associated with projects or project sponsors in attracting private sector financing,” Deputy Finance Minister David Masondo said in an interview on Thursday in London. “The Credit Guarantee Vehicle looks to crowd in private sector capital for strategic infrastructure projects.” Masondo is part of a delegation in the UK presenting South Africa to investors, who’ve sought assurances the country will stay on a path of fiscal consolidation to help preserve improvements in confidence that have underpinned a three-month rally in the rand. South African President Cyril Ramaphosa said in March that as much as R1.6-trillion in public-sector infrastructure investment and a further R3.2-trillion from the private sector will be needed for the country to achieve its infrastructure goals by 2030.