President Cyril Ramaphosa has promised to intensify efforts to ensure that infrastructure investment by both the state and business drives economic recovery, growth, and job creation.
In his weekly newsletter on Monday, Ramaphosa said the government's infrastructure drive was gathering pace because of various reforms and initiatives the state has put in place.
"To achieve the levels of growth our country needs to create enough jobs for its people, we need far more construction and more reliable and consistent infrastructure maintenance. That is why infrastructure development is a strategic priority for the government.
"Airports, roads, railways, public transit systems, water, energy, and telecoms infrastructure all play a vital role in driving economic growth. Infrastructure development has a multiplier effect, driving productivity and job creation, and improving the delivery of basic services," he said.
According to Statistics South Africa, capital spending by state-owned enterprises and national, provincial, and local governments continues to rise.
Additionally, the President cited Nedbank research that showed the total value of new projects launched by the public and private sectors last year was R445 billion.
He emphasised that this amount was the biggest fixed investment in infrastructure in South Africa since 2021 and more than doubled the amount from the year before.
"The private sector is lagging behind the state on infrastructure development spending. However private sector entities announced investment plans in 2024 with a total value of R95 billion.
"These included an R18 billion mixed-use development in Gauteng, an R4 billion investment by Volkswagen to upgrade its Kariega facility in the Eastern Cape, and a new private university for the Western Cape," he said.
The administration gave a summary of several important infrastructure projects that are presently under way throughout the nation during the State of the Nation Address (SONA) and the debate that followed.
Water and sanitation, human settlements, renewable energy, recreational facilities, heritage sites, and maritime infrastructure are some of the projects that the government plans to cover.
The government is also renovating state-owned buildings to provide investment prospects, repairing roads, and modernizing healthcare facilities to improve access and service delivery, Ramaphosa said.
"The construction sector is a major source of employment. It accounted for the largest job increases between the second and third quarters of last year.
"As work continues pace on structural reforms to improve the business operating environment and facilitate investment, our country’s infrastructure build programme will play an increasingly prominent role," he said.
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