Every South African must experience the benefits of improved investment and gross fixed capital formation. South African President Ramaphosa recently stated that the South African government plans to simplify the bills related to infrastructure development to promote private sector investment. Its advisory body will propose an infrastructure development bill (amendment) in 2022.

Ramaphosa pointed out that the amendment aims to clarify the roles and responsibilities of all relevant state agencies in the preparation, approval, procurement and delivery of large-scale infrastructure projects, regardless of whether the above-mentioned projects are public-private partnership projects or direct fiscal expenditure projects. In addition, Ramaphosa emphasized that the current budgetary expenditure on public infrastructure in South Africa is insufficient, resulting in a 14% decline in the ratio of total fixed capital formation to gross domestic product (GDP), instead of the at least 30% recommended by the National Development Plan. It is capital investment in large-scale network fields such as energy, water, transportation, and digital.

The government also announced the establishment of the South African Infrastructure Fund and will inject at least R400 billion (approximately US$27.9 billion) into this fund in the next three years. Ramaphosa said: "In order to create more jobs on a wider scale, we have decided to establish the South African Infrastructure Fund, which will fundamentally change the methods of establishing, constructing and operating infrastructure projects."

The President said: "We are implementing high-quality infrastructure for inclusive growth to correct the economic imbalance between urban and rural areas, develop townships into viable economic centers, and reduce the cost of living for the poor." Rum, senior lecturer at the School of Business, Kingsoft University, South Africa Kil Mondy said: "The economic stimulus plan sends a strong message to investors that South Africa welcomes business investment and the government is committed to economic development." Editor/Xu Shengpeng