The non-negotiables of South Africa's promised infrastructure surge

Mail & Guardian

a day ago

Despite expenditure on infrastructure such as Eskom's transmission lines, roads and rail transport, failures persist. Photo: Delwyn Verasamy/M&G
President Cyril Ramaphosa's keynote address at the Sustainable Infrastructure Development Symposium – South Africa (SIDS-SA) in Cape Town at the end of May was punctuated by a recurring theme: the country's urgent need for money, and the pivotal role the private sector must play in financing infrastructure development.
The government has committed roughly R1 trillion to infrastructure over the next three years with a range of financial instruments set to be introduced, including streamlining public-public partnership initiatives and establishing an Infrastructure Bond by 2026. At the conference, Ramaphosa explicitly called for private sector support to the tune of R2 trillion in medium-term investments.
South Africa's infrastructure push holds immense potential, but history warns of pitfalls. The 2010 World Cup, a flashy boom that left little lasting value, proves that spending alone doesn't guarantee progress. Today, the same flawed logic persists, pouring billions into projects while ignoring systemic inefficiencies. Without fixing the cracks, an infrastructure surge risks becoming another short-lived spectacle, leaving people disillusioned with crumbling services and empty promises.
Consider this: according to Statistics South Africa, the country's public-sector capital expenditure grew from R200 billion in 2006 to R283 billion in 2023, with infrastructure as a priority. While still below 2015 levels, spending rose by R50 billion since 2021 — led by Eskom (R39 billion on transmission lines), Prasa (R16 billion on rail), and Transnet (R15 billion). Private sector investment has also surged, with Gross Capital Formation (GCF) up 35.2% (R807 billion to R1.09 trillion) from 2016 to 2023.
Yet, energy blackouts, water shortages and transport failures persist, worsened by a lack of climate-resilient infrastructure. The deeper structural challenges of inequality, exclusionary ownership and uneven growth remain resistant to financial fixes alone. This disconnection between investment and outcomes raises questions about efficiency, maintenance and systemic barriers.
For South Africa's infrastructure push to succeed, the government must first tackle entrenched impediments. Only then can this 'boom' deliver on its core imperatives: which ought to be resilient infrastructure, equitable development, and inclusive empowerment.
At the forefront, the government must devise a credible strategy to attend to what I call the municipal governance paradox — that is, while local governments are constitutionally mandated as the primary delivery agents, they are the weakest link in our implementation chain.
Constitutionally, municipalities own infrastructure delivery, with national government intervention permitted only under strictly defined failure conditions. Yet, current realities paint a troubling picture: according to the Auditor General Report of 2024, 77% of municipal infrastructure projects showed deficiencies, while only 16% of municipalities achieved clean audits.
Poor management leads to delays, cost overruns, and decay — evidenced by a 55.7% surge in infrastructure depreciation since 2016. Fixing these demands urgent action: skills development, enforced maintenance budgets, and climate-resilience incentives.
Second, the small, medium and micro enterprises sector must not be treated as preferential, but fundamental.
These enterprises are increasingly contributing to employment, with Stats SA reporting that South Africa's construction sector saw the most significant growth in small business turnover (rising by 23 percentage points, from 17% in AFS -what is AFS?- 2013 to 40% in AFS 2023) while also accounting for a growing share of the industry's total workforce.
But SMMEs remain chronically underused in national infrastructure planning. The government ought to quickly realise that South Africa's infrastructure revolution will be built by SMMEs or it will not be built at all.
Last, innovation must become the critical differentiator, not just a piecemeal activity.
South Africa's research and development crisis, reflecting weak investment in innovation, persists, with spending at just 0.6% of GDP, far below the 2.7% global average.
This deficit undermines infrastructure development and long-term competitiveness. While we have the technical expertise, we require our national infrastructure planning to support the creation of a system that rewards efficient and sustainable solutions. We ought to institutionalise mechanisms that prioritise speed, cost efficiency and sustainability. Anything less condemns us to repeating past failures at future costs.
Increased investments into the sector are certainly warranted, but principle before payout is key. How we steward the increased investments over the next three years will determine whether we construct mere projects or forge lasting national value.
Siseko Maposa is the director of Surgetower Associates Management Consultancy. He is a regular commentator on South Africa political economy and industry.