A proposed R10 billion worth of public-private partnership initiative between the Govan Mbeki Local Municipality and the International Diverse Innovative Solutions has been delayed due to administrative stalling by the municipality, delaying development initiatives that could potentially bring much-needed job opportunities and necessary infrastructure development to the municipality.
The Select Committee on Cooperative Governance and Traditional Affairs, Water and Sanitation was informed that a buy-in from the municipality has been slow to come by despite the limited risk to the municipality and support by the National Treasury. The committee was visiting the municipality to assess socio-economic development in the municipality.
The stalling flies in the face of repeated calls by the President of the Republic, Mr Cyril Ramaphosa, of the need for the private sector to play, together with government, a central role in the development of social infrastructure which is critical in the social transformation of the country. In February 2020, the President called for an increase in investment in social infrastructure.
“In recent years, the government has witnessed the accelerated deterioration of some of its most important assets required to improve the quality of life of people. There has been a huge neglect as well in this regard and a rapid deterioration of municipal infrastructure. Multilateral development banks, development finance institutions, and the private sector all have a critical role in the financing and implementation of this investment in coming years. Government has witnessed the accelerated deterioration of some of its most important assets required to improve the quality of life of people. There has been a huge neglect as well in this regard and rapid deterioration of municipal infrastructure,” President Ramaphosa said.
According to the South African Local Government Association, the unemployment rate in the Govan Mbeki Municipality is currently at 25.5%. Of this, te unemployment rate for females is 30.5%, and the youth unemployment rate is at 52.9%. The potential for job opportunities through this proposed initiative remained humongous.
The committee questioned why there is a lack of appetite to move ahead with an initiative that was proposed in 2014, in light of the positive spin-offs both in terms of development and employment opportunities for the people of the area. “There should be an excitement about an initiative worth R10 billion but there seems to be stumbling blocks to this development. We remain of the view that if all legislative processes are adhered to, then the initiative should be welcomed and implemented,” Mr Dodovu said.
The committee has recommended that the municipality and the private partners should urgently meet, with the assistance of the provincial government, to find ways to leverage the opportunities presented by this public-private partnership, especially in relation to development of social infrastructure.
By Malatswa Molepo
16 September 2020
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