Defence Minister Bantu Holomisa says South Africa must explore innovative funding models and public-private partnerships to strengthen the country’s defence capability.
Bongani Mankewu
We should applaud General Bantu Holomisa's suggestion to seek cooperation with the commercial sector to bolster SANDF. He stated that these partnerships must be carefully planned and evaluated in light of national security requirements, affordability, procurement laws, ownership, and long-term financial implications. To investigate long-term infrastructure investment options, institutional investors, such as the Public Investment Corporation (PIC), must be included in the funding formula, he emphasized.
It is disconcerting that the PIC's governance issue is aggravated amid internal power struggles. Most state-owned enterprises (SOEs), which are expected to spearhead infrastructure development, exhibit widespread annoyance and contempt for governance. PIC is expected to be a sacred and sacrosanct financial institution in this country.
It is noteworthy that Regulation 28 might make the PIC a crucial player in infrastructure lending in South Africa. But rather than requiring infrastructure investment, the regulation allows retirement funds, such as the Government Employees Pension Fund (GEPF), which is overseen by the PIC, to make bankable infrastructure investments while upholding fiduciary responsibility and prudent diversification.
