PRIVATE FINANCE INITIATIVE AS A TOOL FOR BRIDGING THE INFRASTRUCTURAL DEFICIT IN DEVELOPING ECONOMIES

A critical factor in the economic growth of any nation is its infrastructural development. For most developing countries, such as South Africa, the infrastructural deficit has been experienced over the years mainly due to low gross domestic savings. A viable tool in shoring up for the shortfalls of infrastructural investment is the private finance initiative (PFI), as it makes provision for private sector financing of construction projects. On this basis, this study seeks to assess the drivers of PFIs in the South African construction industry. Using a quantitative approach, the study elicited data from relevant stakeholders in the built environment. Retrieved data were subjected to data analysis methods such as mean item score, Kruskal Wallis h-test, and SNK post-hoc test. The analysis findings show that the most significant propelling measure for PFIs in the South African construction industry is overcoming public sector budget constraints, timely project completion, and improved service delivery. Based on the study’s conclusion, recommendations were made to help propagate the inclusion of PFI as an alternative for project financing in South Africa.