Riyaz Patel
Telecoms giant MTN plans to invest R10-billion a year into its South African operations over the coming five years as part of President Cyril Ramaphosa’s quest to attract more than R1-trillion of fixed investment into the underperforming economy.
Speaking at the South Africa Investment Conference MTN CEO Rob Shuter said the R50-billion (R10-billion a year) would be directed towards rolling out the “digital infrastructure, networks, connectivity and the high-speed highways that South Africans are going to need to move even further into the digital age.”
Another portion of the investment would be deployed by the MTN Group for expenditure on properties, platforms and people in South Africa that are used to support the company’s operations in 21 countries in Africa and the Middle East.
MTN was also eagerly awaiting the release of high-demand broadband spectrum in South Africa, which is expected to stimulate further investment as capacity is released.
Speaking ahead of MTN’s investment pledge, Ramaphosa said government had initiated the release of the broadband spectrum, “which will bring down data costs and encourage investment.”
“A policy framework has been Gazetted and the regulator has published its proposals,” Ramaphosa added.
The Shanghai-based New Development Bank, established by the BRICS bloc of Brazil, Russia, India, China and South Africa, said it would be continuing with its support for infrastructure projects in South Africa.
VP and CFO Leslie Maasdorp said that the bank had approved another $1.6-billion in infrastructure financing for 2020 and was hoping to increase that to $2-billion in the coming months to support energy, transport and water.
South African projects approved by the NDB in 2019:
– South African National Toll Roads Strengthening and Improvement
Programme (ZAR 7 billion)
– Environmental Protection Project for Medupi Thermal Power
Plant (USD 480 million loan to Eskom)
– Renewable Energy Sector Development Project (proceeds of the
Bank’s ZAR 1.150billion, approx. USD 80 million loan will be
on-lent by the Industrial Development Corporation of South Africa)
– Lesotho Highlands Water Project (NDB will provide a project loan
of ZAR 3.2 billion (approx. USD 220 million ) to Trans-Caledon
Tunnel Authority, for the implementation of Phase II of Lesotho
Highlands Water Project and financing the construction of water
transfer infrastructure to the benefit of South Africa
In 2019, the development finance institution pledged $2-billion to South African projects but by the end of October had already disbursed $2.2-billion.
