SOUTH Africa’s government has unveiled plans to inject $54bn into public infrastructure projects over the next three years. The investment, outlined in documents from the National Treasury, aims to modernise transport, energy, and water infrastructure to stimulate economic growth and job creation.
According to the Treasury, the 2025 budget includes significant allocations to address infrastructure backlogs and improve public services.
Major investment in transport, energy, and water
The budget earmarks $21.3bn for transport infrastructure, with the South African National Roads Agency Limited (SANRAL) set to receive $5.3bn for road development and maintenance.
In response to ongoing power crises, $11.6bn will go towards upgrading energy infrastructure, including improvements to the electricity grid. Water and sanitation projects will receive $8.3bn to address supply challenges and ageing infrastructure.
The government has also committed $2.4bn to passenger rail improvements and disaster recovery efforts, ensuring critical services remain operational.
Infrastructure as a growth catalyst
Finance Minister Enoch Godongwana emphasised that investment in infrastructure is a key driver of economic growth. The Treasury projects that capital allocations will grow by 8.1 percent annually over the next three years, with a focus on expanding service delivery and enhancing economic resilience.
However, political disagreements within the Government of National Unity (GNU) have delayed the formal tabling of the budget, now scheduled for March 12 instead of the initial February 19 date.
Challenges and future outlook
Despite South Africa’s relatively advanced infrastructure, challenges such as power outages, water shortages, and deteriorating transport networks continue to impact economic productivity. Experts argue that while the government’s infrastructure investment is a positive step, efficient implementation and maintenance will be crucial to achieving long-term benefits.
With the Treasury’s commitment to increased spending, South Africa aims to modernise key infrastructure, support economic stability, and enhance public service delivery over the next few years.
