Programme Director,
Minister of Public Works and Infrastructure, Dean Macpherson,
Ministers and Deputy Ministers from South Africa and the Continent,
Premiers,
Mayors from South Africa and the Continent,
Head of Infrastructure South Africa,
Members of the Diplomatic Corps,
Leaders of business and labour,
Representatives of development finance institutions and multilateral organisations,
Infrastructure professionals and practitioners,
Distinguished guests,
Ladies and gentlemen,
It is a great pleasure to join you at the sixth Sustainable Infrastructure Development Symposium of South Africa.
We meet just a week after the leaders of the Southern African Development Community held the 46th Ordinary SADC Summit in eThekwini.
At the centre of discussion at the Summit was the work we must collectively undertake to further integrate the economies of our region.
Infrastructure is fundamental to the integration of our Southern African region and the African continent.
We need roads, bridges, rail lines, ports, power lines, data cables and gas pipelines that cross our region and continent.
We must link mines to factories and farms to markets. We must link gas fields to industrial plants and wind farms to homes and businesses.
We must link mobile phones to data centres. We must link businesses to customers.
It is for this reason that South Africa has placed infrastructure investment at the centre of our drive for inclusive growth and job creation.
We know that our ability to grow the economy depends on whether we can secure reliable energy, sufficient water, efficient ports and railways, functioning roads, digital connectivity and cities and towns that work.
Infrastructure affects the daily lives of South Africans.
It determines whether a household has clean water, whether a community has functioning sanitation, whether a learner has a safe and suitable school, whether a commuter can travel safely and affordably, and whether a business can rely on the basic services it needs to operate.
When we embarked on the infrastructure investment drive, we were clear that South Africa needed to fundamentally change the way in which infrastructure is planned, prepared, financed and delivered.
We recognised that our infrastructure system was too fragmented.
The result was delay, escalating costs and, in too many instances, projects that did not proceed at all.
We have strengthened coordination through the Infrastructure Development Act and the work of Infrastructure South Africa in preparing and advancing the country's strategic infrastructure pipeline.
We expect Infrastructure South Africa to ensure that our infrastructure pipeline is progressing, that projects are properly prepared, that funding is secured, and that procurement takes place when it is supposed to.
The economic imperative for doing so is clear.
South Africa's level of investment remains far below what is required to achieve faster and more sustained economic growth.
Gross fixed capital formation – which measures investment in productive assets such as infrastructure, machinery, equipment and productive capacity – stood at around 14 percent of GDP in 2025.
This is less than half of the 30 percent investment level envisaged in the National Development Plan for 2030.
These figures should concern us.
And they should motivate us to work with greater urgency and diligence to build the infrastructure our country needs.
As we meet at this sixth Sustainable Infrastructure Development Symposium, we can say with confidence that we are moving ahead at a greater pace.
The estimated capital value of the portfolio of our Strategic Integrated Projects has grown from approximately R340 billion in 2020 to more than R1.67 trillion today.
There are 195 public and private led infrastructure projects across priority sectors in the current portfolio.
Over the last several years, 32 projects with an estimated value of approximately R48 billion have been completed.
At present, 55 projects with an estimated value of more than R407 billion are in construction.
This tells us that the pipeline is becoming more mature.
But it also tells us where our attention must now be concentrated.
We must focus on conversion.
We need to convert plans into prepared projects, convert prepared projects into investment, and convert investment into construction.
Most importantly, we need to convert construction into infrastructure that supports economic activity and improves the lives of our people.
The role of Infrastructure South Africa is vital to this.
Drawing its mandate from the Infrastructure Development Act, Infrastructure SA plays a critical role in coordinating and facilitating Strategic Integrated Projects across Government.
It identifies blockages and brings the relevant institutions together to resolve them.
One of the most important lessons we have learned is that South Africa does not suffer from a shortage of infrastructure proposals.
Our constraint is that too many of these projects are not adequately prepared.
There is an important difference between a project that is needed and a project that is ready.
Through Infrastructure South Africa’s R600 million project preparation facility, 26 projects have received and are receiving project development support.
This kind of support is particularly important as we shift our focus towards municipal infrastructure delivery.
Municipal infrastructure is not only where the effectiveness of the state is most directly tested. It is the foundation of inclusive economic growth.
Businesses cannot function without reliable municipal infrastructure. Children cannot be schooled. Workers cannot get to work. Communities cannot be developed.
That is why we have to address municipal infrastructure differently.
Providing another grant without addressing the underlying capability of the institution is not sufficient.
Building a new asset without making provision for its operation and maintenance is not sustainable.
Developing long lists of projects without preparing them properly does not constitute an infrastructure pipeline.
The approach we are developing places project preparation, institutional capability, financing and asset management together.
This work is beginning to bear fruit.
For example, Infrastructure South Africa just spent R1.8 million to prepare and package a project for the Matjhabeng Local Municipality to replace over 1,700 kilometres of water pipes.
That relatively modest investment in preparation helped to unlock an R800 million debt financing facility from the Development Bank of Southern Africa.
Through the Adopt-a-Municipality pilot programme, Infrastructure South Africa is preparing and packaging projects to unlock R7 billion of investment.
The programme is focusing on municipal trading services such as water and sanitation, electricity and energy, and waste management.
One of the important reforms we have pursued in recent years is to provide greater certainty and visibility around the country’s infrastructure pipeline.
Today we are releasing the 3rd Edition of the Construction Book.
This showcases projects worth more than R350 billion, spanning sectors such as water and sanitation, transport and logistics, energy and electricity, and municipal infrastructure.
The Construction Book provides the market with a clear view of funded and investment-ready infrastructure projects that are expected to enter procurement over the next 12 to 18 months.
This Edition contains over 170 projects with an estimated value of R264 billion.
To ensure that these projects move from the page onto the ground, we will now publish quarterly performance reports of the Construction Book.
As South Africa, we have situated our infrastructure ambitions within the wider context of regional and continental integration.
I understand that the third Leaders Forum, held yesterday, gave particular attention to the infrastructure required to better connect our economies and markets.
This aligns with the discussions we held last week at the SADC Summit.
We know that physical infrastructure alone will not deliver integration.
We must continue the work of harmonising the policies, regulations, standards and institutional arrangements that enable infrastructure systems to operate effectively across national boundaries.
That is why we are particularly encouraged by the participation of leaders, investors, financiers and technical experts from across the African continent.
None of this work can be undertaken by Government acting alone.
The scale and complexity of infrastructure development demand partnership across the State, with the private sector, with development finance institutions and commercial lenders.
It requires strong cooperation between national, provincial and local Government.
It requires capable state-owned entities and implementing agencies.
It requires engineers, planners, quantity surveyors, construction companies and other infrastructure professionals.
It also requires universities and training institutions that develop the skills our country needs, as well as international and development partners who bring experience, expertise and capital.
This Symposium is important because it brings these different partners together around a common purpose: to improve the way we plan, finance and deliver infrastructure.
The task before us is substantial, but so too is the opportunity.
If we continue to improve the quality of project preparation and strengthen the institutions responsible for delivery, we can significantly increase the pace and scale of infrastructure investment.
If we create greater certainty for investors and build enduring partnerships across Government, business and society, we can create opportunity for all our people.
Let us ensure that what we build will serve our nation, our region and continent not only today, not only tomorrow, but for many generations to come.
I thank you.
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