President Cyril Ramaphosa has reaffirmed his administration’s commitment to driving economic growth and revitalizing South Africa’s infrastructure, announcing an ambitious R940 billion investment over the next three years.
Delivering his State of the Nation Address (SONA) on Thursday night, Ramaphosa emphasized that infrastructure development is a key pillar of a thriving economy, creating a cycle of investment, growth, and job creation.
“We must lift economic growth above 3%,” he stated. “To achieve this, we are making massive investments in new infrastructure while maintaining and upgrading existing assets.”
Unlocking Funding and Driving Development
To support this ambitious plan, the government is engaging local and international financial institutions to unlock R100 billion in infrastructure financing. This funding will drive major projects, including:
✅ Revitalizing roads and bridges
✅ Building dams and improving waterways
✅ Modernizing ports and airports
✅ Powering economic growth through the Infrastructure Fund
A project preparation bid window has also been launched to accelerate investment readiness, alongside revised public-private partnership regulations aimed at attracting private sector expertise and funding.
Economic Reforms and State-Owned Enterprises
Ramaphosa highlighted the ongoing economic reforms under Operation Vulindlela, which have created fresh optimism about South Africa’s economic trajectory.
“Over the coming year, we will initiate a second wave of reforms to drive more rapid and inclusive growth,” he said.
A key focus will be on strengthening state-owned enterprises such as Eskom and Transnet to ensure they operate efficiently while allowing for private sector competition in electricity generation, freight rail, and port terminals.
The government’s Freight Logistics Road Map aims to modernize port terminals and rail corridors, attracting private capital to upgrade logistics infrastructure to world-class standards. Encouragingly, Transnet’s performance is stabilizing and improving, a vital step toward ensuring minerals, vehicles, and agricultural produce reach global markets more efficiently.
A new state-owned entity reform unit is also being established to balance public ownership of strategic infrastructure with innovative ways to attract private investment and improve service delivery.
Energy Sector: Ending Load-Shedding for Good
One of the most significant milestones in the government’s infrastructure plan is the progress made in stabilizing energy supply.
“We have now gone more than 300 days without load-shedding since March 2024,” Ramaphosa highlighted.
While acknowledging the brief return of power cuts last week, he reassured South Africans that the country is on a positive trajectory. He emphasized that eliminating load-shedding permanently remains a top priority, with further updates expected from the Minister of Electricity in the coming weeks.
The recently implemented Electricity Regulation Amendment Act (effective January 1, 2025) marks the beginning of a new era for South Africa’s energy sector. Plans are underway to establish a competitive electricity market, allowing multiple power producers to compete and increasing investment in renewable energy infrastructure.
“We need to install 14,000 kilometers of transmission lines, and we will mobilize funding from multiple sources to make this happen,” Ramaphosa stated.
South Africa’s Just Energy Transition Gains Momentum
The government’s commitment to a just energy transition is gaining momentum, with over $13 billion in international funding secured to support South Africa’s shift towards a greener, low-carbon economy.
“We are determined to meet our carbon reduction commitments while ensuring that the transition is done at a pace and scale that South Africa can afford,” he emphasized.
In addition to international funding, significant private capital is being invested locally to accelerate this transition.
A Nation Moving Forward
With bold infrastructure investments, economic reforms, and strategic partnerships, South Africa is laying the foundation for sustained growth and development. Ramaphosa’s vision is clear: a future where world-class infrastructure, reliable energy, and inclusive economic opportunities drive the country forward.
“Together with business, labor, and social partners, we will finish the work we have started,” he concluded. “A stronger, more prosperous South Africa is within our reach.”
