Social infrastructure developer Gap Infrastructure Corporation (GIC) has successfully raised R616-million in private investment to accelerate the country’s social and public infrastructure development.

This is a pivotal step forward in the company’s plans to tackle public infrastructure challenges while supporting the government’s efforts to close the infrastructure gap, says GIC CEO Roelof van den Berg.

“This milestone represents one of the very few occasions where private funding has been raised to assist in delivering social infrastructure programmes in South Africa.

“The infrastructure backlog is not just a government problem; it is also the responsibility of the private sector to join hands in solving the infrastructure challenges facing this beautiful country," he notes.

Infrastructure development has been named a national priority to accelerate economic growth and job creation, especially given the vast need for essential services.

An investment of between R4.8-trillion and R6.2-trillion is required to meet the country’s Sustainable Development Goals by 2030.

Investment in the transport, water and sanitation and education sectors is critical for socioeconomic development and improving the quality of life in communities across the country, he says.

“A major obstacle impeding investment into social infrastructure is its inherent lack of direct revenue generation, which often makes these types of projects less attractive to private investors.

“GIC has recognised this challenge and introduced innovative funding models designed to mitigate the traditional risks associated with social infrastructure investments.”

GIC's approach aligns financial incentives with broader socio-economic benefits. Its goal is to set a new precedent in how social infrastructure can be financed in South Africa by offering more secure and structured investment opportunities, Van den Berg explains.

The R616-million funding will help address South Africa’s biggest infrastructure challenges, and significantly impact a number of communities by creating jobs and improving access to essential services.

GIC’s projects aim to uplift underserved areas by introducing much-needed infrastructure, such as schools, healthcare facilities and water systems, which, in turn, contribute to the socio-economic development of these regions.

“This will directly tackle the root causes of inequality in our society and is more than finding temporary fixes or making surface-level improvements. With this R616-million, GIC will be able introduce a new blueprint for social investment that places the best interests of our people at the forefront, with a focus on changing lives, creating impactful job opportunities, and improving many people’s quality of life,” says GIC chairperson Olebogeng Manhe.

“We are committed to building a future where everyone can benefit from sustainable development, and this is a significant step toward achieving that goal," he says.

Further, this is the first round of a larger rollout plan, and GIC has set its sights on securing a total of R20-billion in private investment over the next 12 months, which will be directed towards sustainable and impactful infrastructure projects critical to South Africa’s development.

“By developing innovative financial solutions and leveraging private investment, we are actively working to address South Africa’s most immediate infrastructure needs while establishing a framework for long-term sustainability in the construction sector,” says Van den Berg.

This initiative serves as a proof of concept and has created an improved funding model that promotes involvement from the private and public sectors.

“Through this approach, we hope to unlock the country’s full infrastructure development capabilities and set a new standard for public-private partnerships,” he says.