The South African government has revealed it plans to spend an incredible 1.03 trillion Rand (£44 billion) over the next three years on infrastructure projects by state-owned enterprises and government departments.
According to documents shared by the National Treasury, the government will significantly upscale its infrastructure delivery programme.
South Africa’s 2025 budget proposes strategic investments to boost economic growth, focusing on electricity, rail, water, and transportation projects.
“There are major opportunities to reduce the backlog in public infrastructure while creating jobs and bolstering economic activity,” the document said, according to IOL.
It continued that the £44 billion includes £17.3 billion for road infrastructure, with £4.3 billion of investments by the South African National Roads Agency Limited. A further £9.4 billion will be spent on energy infrastructure, and £6.7 billion will flow to water and sanitation.
“The 2025 budget adds R46.7bn [£2 billion] in funding for infrastructure projects over the next three years.”
However, the proposed 2025 budget was deferred for tabling in Parliament on February 19 until March 12 after parties in the Government of National Unity (GNU) disagreed on proposals made by the National Treasury.
Minister Enoch Godongwana said in his speech (which he did not deliver) that the planned public infrastructure expenditures demonstrated the government’s commitment to leveraging infrastructure as the foundation of economic development, a key source of jobs, and a way to scale up service delivery.
The National Treasury projected capital allocations will increase by 8.1% over the next three years, including funding for passenger rail and disaster reconstruction.
South Africa is considered one of the richest countries on the continent, holding the largest amount of private wealth and the highest GDP compared to other nations.
The country is also rich in mineral resources like diamonds, gold, platinum, and manganese, which contribute to its economic strength. Agriculture also remains significant, with the country renowned for its wine production.
While South Africa generally has the best infrastructure in Africa, it is considered below satisfactory and deteriorating, with major challenges like power outages and a lack of maintenance.
While the country has plenty of water and dams, pipes used to transfer water to households are in desperate need of maintenance to eliminate water shortages.
