Transnet will spend billions on infrastructure in the next five years
Chris Wells told Parliament's portfolio committee on transport that Transnet, which had spent R74bn in the past five years on projects such as upgrading ports and building pipelines, had created hundreds of thousands of jobs for South Africans.
"Some studies we are engaged in show this infrastructure programme has had a significant benefit effect to SA, both on employment and creating industries," he said.
"It could be as many as 500,000," Wells said.
Early indications are that a new five year plan to be finalised by the end of February would increase investment to R93.4bn.
"It is exciting that we have the capacity to do that," he said.
Wells said Transnet had managed to raise R19bn "very cost Effectively," in the debt capital markets.
It was important for South Africa to develop foreign sources of funding as there was a "limited capacity" in South Africa.
"Particularly as the total South African infrastructure programme gains traction, there is going to be a need for offshore funding," he said.
Transnet has secured R4bn in offshore investment for its infrastructure programme. The parastatal also recently listed its global medium term notes bond programme.
"This will enable us to issue in the US and European markets anytime going forward as the circumstances are advantageous for us," he said.
Sapa
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