NEWS: SA needs trillions to achieve infrastructure goals

President Cyril Ramaphosa said a number of bold initiatives are being implemented to deliver infrastructure at the required scale and pace.

President Cyril Ramaphosa said investment in infrastructure is central to the achievement of South Africa’s development goals and the country will need trillions of rands to meet the 2030 deadline.

Ramaphosa delivered the keynote address at the 3rd Sustainable Infrastructure Development Symposium (SIDSSA) in Cape Town on Tuesday.

The event was created to facilitate the objectives of the Sustainable Development Goals (SDG’s) and South Africa’s National Development Plan (NDP) to ensure access to greater and economical sources of sustainable funding.

Closing the gap

Ramaphosa said the symposium was an important part of government’s efforts to close the infrastructure spending gap in South Africa.

“It is estimated that to achieve our infrastructure goals, we need an additional R1.6 trillion in public sector infrastructure investment and a further R3.2 trillion from the private sector by 2030.”

Ramaphosa said a number of bold initiatives are being implemented to deliver infrastructure at the required scale and pace.

“We are working on reforms to develop sustainable infrastructure, lift business confidence and encourage investment.  

“These reforms include the amendment of the Division of Revenue Act to enable provincial governments to use their infrastructure grants and budget allocations to crowd-in private sector finance for large social infrastructure programmes.” Ramaphosa said.

Ramaphosa highlighted the growth total value of the country’s Strategic Integrated Projects from R340 billion in July 2020 to R540 billion now, and that a platform like the SIDSSA is where extensive collaboration between government and private sector can be further enhanced in transforming South Africa’s infrastructure landscape.

Renewable energy

Ramaphosa added that Infrastructure South Africa has unblocked a total of R25 billion worth of projects in the renewable energy space using the Infrastructure Development Act to fast-track government authorisations.

“Among the Strategic Integrated Projects, the energy portfolio has the biggest project pipeline, covering transmission, gas, renewables and green hydrogen.  South Africa is positioning itself to be a leader in green hydrogen, working towards a sustainable future driven by innovation.

“The green hydrogen programme, estimated at R300 billion and comprised 14 projects, is an important part of the country’s just transition,” he said.

Ramaphosa also said major water infrastructure projects are under construction in several parts of the country, expanding the capacity of dams and bulk water infrastructure.

The president said South Africa must continue efforts to create the right environment to develop better infrastructure, and improve the delivery of catalytic infrastructure projects that connect countries and regions.

Construction book

Infrastructure South Africa published the first edition of a construction book that showcases 153 infrastructure projects across five major state-owned enterprises.

These include Transnet Freight Rail, Transnet National Ports Authority, Airports Company South Africa, Eskom and Sanral.

Ramaphosa said the projects showcased in this construction book will contribute to greater economic growth, while at the same time supporting the provision of public services and laying the foundation for long-term growth.

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