Infrastructure spending is essential for South Africa's economic growth and development. President Cyril Ramaphosa announced that the government plans to spend over R940 billion on infrastructure development over the next three years.
This investment aims to address critical infrastructure needs, create jobs, and stimulate economic activity, with the expectation that GDP will exceed 3%, he said in his State of the Nation address. He stated that R375bn of this amount will be spent by state-owned enterprises (SOEs) to build roads, bridges, dams, waterways, and ports.
The government also aims to invest in digital technology, including the relaunch of the gov.za digital platform and the implementation of a digital identity system.
He said innovative ways are being developed to encourage the private sector to partner with the government in developing and financing infrastructure.
Talks are underway with various financial institutions about raising R100bn for infrastructure finance. An infrastructure project finance bid window has been launched to fast-track investment readiness.
Ramaphosa said that the Infrastructure Fund, which was launched some time ago, has approved 12 blended projects in the past year worth R38bn in areas such as water, transport, and energy infrastructure. Small ports and harbours are being upgraded.
Electricity and water utilities will be ring-fenced within municipalities to ensure better investment and service delivery.
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