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Definition

A partnership between the government and the private sector in terms of the Public Finance Management Act. The Gauteng freeway project and toll roads undertaken by Sanral with various construction companies is an example. The reality is that many areas of government have been and are being taken over by the private sector - such as education, health care, postal services, and security. President Ramaphosa initiated the Vulindlela project in 2020 and its impact on the electricity sector has been significant. With the appointment of the Government of National Unity (GNU) after the 2024 elections, it appears that the private sector will be involved in more functions which were traditionally handled by the government - such as the rail and port logistics of Transnet. The scope for public/private partnerships appears to have been greatly increased.  The renewable energy initiatives are also public private partnerships. The idea is to undertake additional projects which the government by itself could not afford to do on its own.

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