Business welcomes the gazetting of amendments to the Public-Private Partnership (PPP) regulations by National Treasury, which the private sector has been advocating for. These regulations establish a separate approval process for PPP projects with an estimated total cost of less than R2 billion, exempting them from requiring Treasury approval. The amendments introduce a risk-based approach that streamlines unsolicited bids and procurement processes for projects within the stipulated threshold.

These regulations mark an important reform that will fast-track infrastructure development at the sub-national (provincial and municipal) level. They will significantly support ongoing reform efforts and encourage increased private sector investment in sectors such as transport and logistics, where frameworks like Private Sector Participation and related network industry reforms are being implemented.

As BUSA, we believe that the R2 billion threshold is relatively low, considering the country’s infrastructure needs and rising associated costs. This is particularly evident at the municipal level, where infrastructure backlogs persist, and public finances are insufficient to meet these demands.

By Lunga Maloyi

Director: Economic and Fiscal Policy