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Investing in the economy

Strategic High Impact Projects (SHIP)

Overview

The Presidential Infrastructure Co-ordinating Commission (PICC) recognises the need to urgently overhaul and expand existing infrastructure as part of an ambitious plan to stimulate economic growth. The plan prioritises investment in logistics and energy generation and transmission across the country. These investments have the potential to deliver high developmental impact, promote new industries and drive job creation.

Transnet, Prasa and Eskom, among other State-owned Companies (SOCs), are also set to drive the R835 billion infrastructure capital expenditure earmarked by government, further unlocking significant investment opportunities.

Strategy

The mandate of the SBU was altered during the year. It explores investment opportunities to strengthen the logistics and transport corridor between South Africa’s main industrial hubs and improve access to export corridors.

In addition, the unit manages cross-sectoral high impact projects.

Performance

Its first major investment will facilitate the formation of Thelo Rolling Stock (TRS), a company that is strategically positioned to benefit from Transnet’s rolling stock renewal project. As a rolling stock leasing company, TRS will procure rolling stock from local manufacturers. This will boost local manufacturing by encouraging companies to use locally sourced material.

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Future focus

The local production of busses, taxis and trucks is also being explored. The SBU will continue to identify in collaboration with other SOCs, particularly Eskom and Transnet, specific high impact localisation opportunities. Beyond examining government’s infrastructure projects, SHIP is conducting a pilot project in Malamulele, Limpopo province, to test the viability of creating a sisal industry in South Africa.