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Private sector key to capital plan – Sacci

The private sector is crucial to the success of the government’s planned infrastructure programme, according to Neren Rau, the chief executive of the SA Chamber of Commerce and Industry (Sacci). He said the 17 strategic integrated projects identified in the New Growth Path would rely on private investment. Speaking at a quarterly review of business policy perceptions yesterday, he said the cost of these projects alone would probably equal the R844.5 billion of “budgeted and approved public sector projects” referred to in the February Budget. Rau urged the government to proceed quickly so as to take advantage of the excitement generated in the business community by the announcements of its capital spending plans.

Rau warned that delays on the government’s part would erode private sector confidence – as it had in the past when promises did not materialise. Sacci’s policy radar, which measures business’s response to government policy, showed infrastructure was the only one of six focus areas where confidence improved in the last quarter – from 3.5 to 3.9. The score is on a scale of 0 to 10. Measures of the other five were at their worst level since Sacci initiated its policy radar in the fourth quarter of 2010. Rau said earlier capital spending plans had generated optimism but the enthusiasm had waned when business realised there was a misunderstanding of how the government arrived at its figure. This was bolstered by projects that would do little to boost growth and many were not new.

He said recent initiatives were more positive for business, “focusing on areas that support the movement of goods more efficiently”. Sacci also released its business confidence index yesterday, which rose last month to 94.9 from 92.8 in May.

Source: iol.co.za

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Private sector key to capital plan – Sacci

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