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Infrastructure is lifeline of GNU
Infrastructure is lifeline of GNU

IOL News

time06-05-2025

  • Business
  • IOL News

Infrastructure is lifeline of GNU

President Cyril Ramaphosa and his deputy Paul Mashatile preside over the first Cabinet Lekgotla of the Government of National Unity. 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., says the writer. 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 R2.9 trillion 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.

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