Government regulations are making it difficult for the KZN government to fast-track the process of rebuilding infrastructure destroyed by floods and the July riots.

This is according to KZN Economic Development MEC Siboniso Duma, who warned against the province’s ‘overreliance’ on treasury allocations.

“For example, if you want to embark on a programme to bring development in rural areas and create jobs for rural dwellers, most of who are in desperate need of jobs, you have to wait for the whole year for treasury to release the funds. Given the current KZN infrastructure backlogs, we need to come up with ideas around alternative funding.”

KZN citizens, Duma said, should consider establishing their own finance institution operating in the same way as a sovereign wealth fund does.

“If all 5.5 million employed people in KZN contributed R100 per month we can have our own bank as black people. It would have billions by the end of the year. Have Amakhosi, the religious sector and other critical stakeholders on the board of directors and the government also contributing to it and call it the sovereign fund. That’s how we can change our economy. Now is the time. EDTEA [the Economic Development Tourism and Environmental Affairs Department] is ready to start the sovereign fund, we can even contribute R20 million to start it.”

According to him, such a fund would make it easier for government to access funding for programmes ranging from rural development to the creation of township economies. On the other hand, citizens who invested in the fund would receive returns on their investment.

“If that happens, then we don’t have to worry about the PFMA [the Public Finance Management Act] and other government procurement processes — which can be drawn out. We will be able to have immediate access to funds for infrastructure development and other key programmes.”

DA provincial spokesperson on economic development Heinz de Boer urged Duma to table his plan before members of the KZN Legislature’s Economic Development Portfolio Committee.

“If ever there is such a plan, it needs to be brought to the portfolio committee so that it could be properly evaluated. As things stands, we have no clue what the MEC is talking about.”