By Akani Nkuna
President Cyril Ramaphosa said on Tuesday that South Africa was entering the biggest infrastructure build in its history, with more than R1 trillion budgeted over the next three years to modernise and expand public infrastructure.
Infrastructure is the flywheel that propels growth. It boosts productivity and trade and reduces the cost of doing business. It creates immediate and meaningful employment — at scale,” Ramaphosa said at the 6th South Africa Investment Conference in Sandton.
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“Over the next three years the state will be investing more than R1 trillion or approximately USD 58 billion in modernising and expanding public infrastructure across South Africa.”
He said this included “R940 billion in planned infrastructure spending, of which R375 billion has been allocated to state-owned companies to support maintenance, upgrades and expansion”.
Setting out some of the biggest planned investments, Ramaphosa said the South African National Roads Agency would invest “between R300 billion and R400 billion” in upgrading and maintaining national roads and developing strategic freight corridors.
He said up to R250 billion is being invested in ports and logistics modernisation, driven by Transnet.
“The Port of Durban is being expanded to handle higher container volumes and improve efficiency; with similar upgrades in Cape Town and the Port of Ngqura in the Eastern Cape.”
Ramaphosa said government would allocate “a total of approximately R420 billion to the Passenger Rail Agency of South Africa for rebuilding corridors and a multi-year rolling stock programme, as well as to Transnet for network expansion”.
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He said the water sector had also been earmarked for major public investment, with projects in the pipeline including the Olifants Management Model Programme in Limpopo and the uMkhomazi Dam linked to Phase 2 of the Lesotho Highlands Water Project.
“Over the next three years approximately R6,5 billion will be invested in energy generation to support the Department of Energy’s roadmap for long term energy security,” he said.
Ramaphosa said other projects in the investment pipeline included upgrades to OR Tambo International Airport, investments in green logistics, electric vehicle infrastructure and incentives, and a R5 billion expansion of the Square Kilometre Array radio telescope project in the Karoo.
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He said government would use blended finance and other mechanisms to speed up delivery and attract more private capital into infrastructure.
Ramaphosa said the conference also marked a shift in the economy, from recovery to expansion. “This year’s South Africa Investment Conference marks the formal transition from recovery to expansion, and from rebuilding confidence to accelerating growth,” he said.
He used the conference to launch a second presidential investment mobilisation drive targeting R2 trillion in new investment over five years, from 2026 to 2030.
“The opening position of the second drive is the R415 billion confirmed fixed investment and R 474,8 billion in DFI being announced in this room today. That brings the total to R 889,8 billion. That’s 81 projects. Nine provinces. 22 source markets. Over 230 000 permanent jobs,” Ramaphosa said.
“This is only the start of an era of new growth and dynamism for South Africa’s economy.”