Infrastructure is the lifeline of South Africa's GNU

Zawya

08-05-2025

As South Africa's Government of National Unity (GNU) charts its course despite challenges, the spotlight remains on delivery – and few areas are as urgent or promising as infrastructure.
The stark reality is undeniable: despite years of investment and policy reform, much of South Africa's economic infrastructure continues to underperform.
As President Cyril Ramaphosa candidly acknowledged in his State of the Nation address this year, 'In many cities and towns across the country, roads are not maintained, water and electricity supply is often disrupted, refuse is not collected and sewage runs in the streets.'
These challenges are evident in three key sectors:
Energy infrastructure Eskom has shown modest improvements but continues to grapple with significant operational challenges. A recent report by the Council for Scientific and Industrial Research shows that load shedding cost the South African economy approximately R2.9tn in 2023. While load shedding has become less frequent, 'load reduction' continues to affect previously disadvantaged communities disproportionately, widening existing inequality gaps.
Water infrastructure The Department of Water and Sanitation has reported alarming water losses in municipalities, averaging 41% due to theft, leaks and bad management.
The breakdown in water infrastructure requires a fundamentally different approach to energy challenges, given that water is a finite resource in an already water-stressed country. The economic ramifications of water shortages are particularly severe, with some municipalities unable to support industrial expansion due to insufficient supply capacity.
Logistics infrastructure Transnet's rail network remains critically underutilised. In its annual report for 2023/24, the parastatal acknowledges that it 'has faced several challenges that have threatened the sustainability of the organisation and compromised the efficiency of its operations'.
The report also states that 'these challenges were further compounded by locomotive shortages and their unreliability due to wear and tear, critical equipment breakdowns, ongoing security incidents and infrastructure challenges".
Perhaps most concerning is South Africa's ports performance. The World Bank's Container Port Performance Index 2023 placed Cape Town as the worst performer globally while Durban – Africa's busiest container terminal – is ranked 398 out of 405 ports assessed.
At Ntiyiso Consulting Group, we suggest these strategic approaches for immediate impact:
1. Asset management optimisation The fastest path to meaningful impact lies not in new construction but in smarter management of existing assets. Across all sectors – water, energy, roads and rail – hundreds of billions of rands' worth of infrastructure operates far below optimal capacity.
Rather than defaulting to new builds, priority must shift to extracting maximum value from existing infrastructure. At Ntiyiso Consulting Group, we've observed that adopting a total-cost-of-ownership mindset – where infrastructure is valued not just by construction cost but long-term performance – can significantly improve return on investment.
If the GNU is looking for quick wins, this is where to begin.
2. Economic impact-driven project selection Infrastructure earmarked for development must go beyond concrete and compliance.
Every project should be assessed for its economic impact – not just in terms of job creation, but in how it contributes to GDP, poverty alleviation, local industry growth and long-term value chains.
South Africa already has the necessary frameworks. They include Infrastructure South Africa's project-preparation methodologies and the Development Bank's economic impact assessment tools. What's required now is the consistent application of these tools.
The objective must be prioritising catalytic infrastructure: projects that unlock potential across multiple sectors and create economic momentum in previously overlooked municipalities. This is how we shift from infrastructure as expenditure to infrastructure as investment.
3. Municipal capacity-building No infrastructure strategy, however well conceived, will succeed without capable implementing institutions – particularly at municipal level. Local governments serve as the ultimate custodians of water, electricity, sanitation and road networks. Yet many municipalities face critical shortages of technical skills, systems and governance frameworks to manage these assets effectively.
Simple technology- and data-driven interventions could yield immediate improvements in municipal infrastructure management, addressing an existential threat in the water sector.
A core focus at Ntiyiso Consulting Group is strengthening municipal capacity through targeted interventions. In one local municipality, for example, our team successfully restarted its wastewater treatment works after several years of inactivity, demonstrating how providing technical support can truly improve infrastructure.
4. Private-sector partnerships Despite budget constraints, the infrastructure gap can be overcome. The private sector has demonstrated what is achievable when provided with the right frameworks.
The Sembcorp Siza Water Concession – a contract aligned with public-private partnership strategic goals that supports the Ilembe District Municipality in fulfilling service delivery – exemplifies this potential. The initiative ensures that the communities it serves have access to clean, safe and adequate water supplies.
Siza Water has outperformed many public utilities in terms of service delivery and affordability, reducing water loss rates to less than 15%, significantly below the national average of over 40%.
Similarly, South Africa's Renewable Energy Independent Power Producer Procurement Programme has attracted billions in private capital while diversifying the energy mix. These models show that when public-private partnerships are structured with clarity and accountability, they can deliver real, lasting results.
Reimagining infrastructure governance
A truly transformative approach to infrastructure management would involve treating each major infrastructure component as an independent business entity. This would require establishing separate entities with dedicated balance sheets and governance structures, operationally distinct from municipalities.
Such entities would feature professional management teams and independent boards, directly accountable for performance metrics and required to deliver dividends to their shareholders (the municipalities). This model would introduce private-sector discipline to infrastructure management while reducing opportunities for wasteful expenditure and improper procurement.
The structure would also improve accountability and attract private investment by providing greater confidence that revenues would be properly managed. Addressing procurement shortcomings and providing targeted support to municipalities would further reduce financial leakages.
Despite significant challenges, there are grounds for optimism regarding infrastructure development. With focused interventions, South Africa could achieve GDP growth beyond the 3% target.
The key lies in accountability: by implementing systematic changes that hold stakeholders responsible for infrastructure performance and financial management, South Africa can begin to realise the potential of its infrastructure investments.
The GNU's legacy will largely be determined by its ability to translate infrastructure vision into tangible implementation – transforming South Africa's infrastructure from a constraint to a catalyst for inclusive growth.
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