Authors: Brigette Baillie and Biddy Faber

Trends & Developments in the South African market during 2020

South Africa has historically had a strong showing in the public-private partnership (PPP), concessions and independent power project (IPP) markets, having undertaken:

  • PPPs in the healthcare, prisons, transport infrastructure, serviced government office accommodation and biosciences sectors;
  • concessions in the toll roads and port sectors; and
  • peaking power and renewable energy IPP projects.

However, the last 12 months have seen little activity in these traditional PPP, concessions and IPP sectors, and the activity has been largely focused on project financings in the commercial and industrial sectors, with a number of financings being undertaken in respect of industrial operations (such as brown– and green-field factory developments of various sorts) and small scale captive renewable power solutions for industrial off-takers. Whilst the market has also seen the finalisation of the financing of some of the renewable energy projects from the fourth round of the Renewable Energy IPP Procurement Programme, these have been lags from the mass closing of those projects in 2018.

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