Infrastructure development
Infrastructure is central to economic reconstruction and recovery. Through innovative funding and improved technical capabilities, government has prioritised infrastructure projects to support economic growth and better livelihoods, especially in energy, roads and water management.
The Infrastructure Fund is at the centre of this effort, with a R100 billion allocation from the fiscus over 10 years. The fund is now working with state entities to prepare a pipeline of projects with an investment value of approximately R96 billion in student accommodation, social housing, telecommunications, water and sanitation and transport.
Several catalytic projects to the value of R21 billion are expected to start construction this year. Of this, R2.6 billion is contributed by government, and the balance from the private sector and developmental finance institutions.
Government will make an initial investment of R1.8 billion in bulk infrastructure, which will unlock seven private sector projects to the value of R133 billion. For millions of South Africans in rural areas, roads and bridges provide access to markets, employment opportunities and social services.
Yet, many children still have to brave overflowing rivers to reach schools and motorists have to battle impassable roads to reach the next town.
Government is therefore upscaling the Welisizwe Rural Bridges Programme to deliver 95 bridges a year from the current 14. The South African National Defence Force (SANDF) is the implementing agent of the Welisizwe programme and has demonstrated the expertise of SANDF engineers in bridge construction.
Theft of scrap metal and cable
The damage caused by the theft of scrap metal and cable on the infrastructure like electricity, trains and other vital services is enormous. Government will take decisive steps this year both through improved law enforcement and by considering further measures to address the sale or export of such scrap metal.
Rural Roads Programme
Earlier this week, President Ramaphosa visited Thakgalane village Limpopo to launch a new road that is going to make a huge difference in the lives of neighbouring communities. This road was constructed using block paving and other materials, which is a method that enables us to build durable roads faster and more cost-effectively.
The rural roads programme will use labour-intensive methods to construct or upgrade 685 kilometres of rural road over the next three years. This social enterprise programme includes access roads in Limpopo and Eastern Cape, gravel-to-surface upgrades in the Free State and North West, and capacity and connectivity improvements in the Western Cape.
School education infrastructure
Government is introducing an innovative social infrastructure delivery mechanism to address issues that afflict the delivery of school infrastructure. The mechanism will address the speed, financing and funding, quality of delivery, mass employment and maintenance.
The new delivery mechanism will introduce a Special Purpose Vehicle, working with prominent Development Finance Institutions and the private sector, to deliver school education infrastructure. This approach is being piloted in schools in the Northern Cape and Eastern Cape.
Ports and railways
The economy cannot grow without efficient ports and railways. Over several years, the functioning of the ports has declined relative to ports in other parts of the world and on the African continent. This constrains economic activity.
The agricultural sector, for example, relies heavily on efficient, well-run ports to export their produce to overseas markets. Fresh produce cannot wait for days and even weeks stuck in a terminal. This hurts businesses and compromises the country’s reputation as an exporter of quality fresh produce. Transnet is addressing these challenges and is currently focused on improving operational efficiencies at the ports through procuring additional equipment and implementing new systems to reduce congestion.
Transnet will ask for proposals from private partners for the Durban and Ngqura Container Terminals within the next few months, which will enable partnerships to be in place at both terminals by October 2022. Transnet will start the process of providing third-party access to its freight rail network from April 2022 by making slots available on the container corridor between Durban and City Deep in Gauteng.
Transnet has developed partnerships with the private sector to address cable theft and vandalism on the freight rail network through advanced technologies and additional security personnel. This collaborative effort is already showing results in reduced disruptions to rail operations. The poor state of passenger rail in South Africa has a direct and detrimental impact on the lives of the people.
Government is working hard to rehabilitate the passenger rail network in 10 priority corridors. The Southern Line in Cape Town and the Mabopane Line in Pretoria have been reopened to be followed by the remaining lines in the next year.
Related links
- Treasury signs Infrastructure Fund Memorandum of Agreement
- Policy proposals on measures to restrict trade in ferrous and non-ferrous metals waste, scrap and semi-finished ferrous and non-ferrous metal products
- Accelerated School Infrastructure Delivery Initiative
Source: State of the Nation Address Highlights [PDF]
