1. GAUTENG PROVINCIAL GOVERNMENT ECONOMIC INDABA ECONOMIC ENABLERS COMMISSION: INFRASTRUCTURE & DEVELOPMENT FINANCE Richard Goode, Infrastructure Research Specialist DBSA.

2. Economic Enablers Succeeding with the ‘art of the possible’ Remarks on the Economic Development Plan Gauteng’s extensive, diversified and uneven economy with deep contradictions: e.g. wealth vs. urban poverty, high level skills vs. no skills, requires economic plans to take on a corresponding wide scope. Emerging plan is sophisticated and wide ranging so risks dilution of impact by tackling too much. It is crucial as well as difficult to priortise yet it must be done. There are many compelling strategic targets in the plan dependent on joined-up government Gauteng as the gateway for trade and Africa’s new industrial revolution but cross-border trade is slow, expensive and contrary to SADC objectives. Roof top solar is waiting for DOE regulations promised for May 2015. GPG should lobby to get all the links in the chain joined up. Coherent governance is essential for Transformation, Modernisation and Reindustrialisation 1

3. Economic Enablers Infrastructure and Development Finance 1.Infrastructure project selection is more important than the quantum of expenditure to reap the full benefits of public (and private) infrastructure investments. 2.New Cities - as concepts - run counter to the economic and environmental imperatives of agglomeration of the GCR. 3.Shortening the project development lead time to bankability must apply learning from the experiences of value engineering and improved procurement practices. 4.An emphasis on new build is politically attractive but misplaced. Maintenance and asset utilization must get more attention to increase investment value and secondary effects of employment and industrialization. 5.Smart Cities and the IoT will alter infrastructure services with risks of displacing labour and opportunities for South African technology solutions. 6.Infrastructure financing is evolving with the inclusion of infrastructure as an asset class for sources of capital previously not mobilized, namely pensions and private equity but the fundamentals that all public infrastructure is funded through taxes, transfers and user fees. 7.DFIs are constantly looking for partners. Put them to the test. Development Finance Institutions value comes from involvement in the project development cycle and long tenor of their debt. 2