President Cyril Ramaphosa has announced an ambitious plan to secure R100 billion in infrastructure financing by engaging local and international financial institutions and investors.
Speaking during his annual State of the Nation Address (SONA), Ramaphosa emphasised that large-scale infrastructure investment is key to accelerating economic growth and job creation.
“To create this virtuous cycle of investment, growth, and jobs, we must lift economic growth to above three percent,” he said.
To achieve this, the government is prioritising massive infrastructure investments while maintaining and upgrading existing assets.
A project preparation bid window has been launched to fast-track investment readiness, supported by revised public-private partnership regulations aimed at unlocking private sector expertise and funding.
Over the next three years, the government plans to invest more than R940 billion in infrastructure, including R375 billion from state-owned enterprises. This funding will be channeled into revitalizing roads and bridges, modernizing ports and airports, building dams, and strengthening power generation capacity.
“We are steadily removing the obstacles to meaningful and faster growth,” Ramaphosa said. “The economic reforms we are implementing through Operation Vulindlela have created a new sense of optimism and confidence in our economy.”
The Infrastructure Fund is already making an impact, with twelve blended finance projects worth nearly R38 billion approved in the past year. These projects span critical sectors such as water and sanitation, student accommodation, transport, health, and energy.
Among the flagship projects underway is the Mtentu Bridge, set to become Africa’s tallest bridge, connecting Port Edward and Lusikisiki. Additionally, the Polihali Dam in the Lesotho Highlands will deliver 490 million cubic meters of water annually into the Vaal River System, securing water supply for several provinces.
Government is also working with international partners to revitalize small harbors, unlocking economic opportunities for coastal communities.
Ramaphosa remains confident that these efforts will drive much-needed investment and economic transformation. “We want a nation with a thriving economy that benefits all,” he affirmed.
President Cyril Ramaphosa, says South Africa is undergoing a “fundamental transformation” – as it seeks to accelerate inclusive economic growth.
President Ramaphosa was speaking at the South Africa Night World Economic Forum (WEF), held at the Garden Hall in Davos Klosters, Switzerland, on Tuesday evening.
The event, hosted by Brand South Africa, celebrated the country’s G20 Presidency, an extraordinary opportunity to shape the global agenda for inclusive growth and sustainable development.
The event was held on the sidelines of the annual WEF meeting, which is taking place from 20-24 January 2025, under the theme: “Collaboration for the Intelligent Age”.
The President told the gathering that the country has introduced reforms in sectors, including water, electricity and logistics, that are serving as a base for economic growth.
“South Africa is undergoing a fundamental transformation. We have introduced bold economic reforms to overcome persistent challenges and unlock the vast potential of our country and its people.
“These reforms have underpinned the country’s economic recovery in the wake of more than a decade of stagnant growth, state capture and the worst global pandemic in more than a century. These reforms are laying a firm foundation for sustained and accelerated growth into the future,” President Ramaphosa said.
He added that the reforms, and the subsequent structural transformation are “sharpening South Africa’s competitive edge, boosting productivity and attracting investment”.
