Godongwana explained that several of the reforms are designed to help the state deliver infrastructure and encourage private-sector investment.

"During 2025/26, a single structure overseen by the National Treasury will be established to coordinate state participation in project preparation and planning, public-private partnerships (PPPs), funding and credit guarantees.

“It will be established by merging two units currently in the Government Technical Advisory Centre that coordinate PPPs and capital appraisals with the Infrastructure Fund in the Development Bank of Southern Africa.

"Streamlining the framework for public-private partnerships Infrastructure reforms are underpinned by a commitment to significantly increase partnerships with the private sector."

On 7 February 2025, amendments to Treasury Regulations for PPPs were gazetted. From June 2025, projects below a total value of R2 billion will no longer have to clear "onerous approval processes" intended for large projects before proceeding.

"A clear framework is being established to receive and process unsolicited PPP proposals or bids from the private sector. Revised manuals and guidelines on PPPs are being produced and will be made available to the public. New legislative amendments and regulations for municipal PPPs will also be introduced in 2025," he said.

He also explained that the Budget Facility for Infrastructure (BFI) plays a central role in the capital budgeting system by recommending funding for projects that are jointly funded from other sources, including state-owned companies, municipal-owned resources and the private sector.

For the 2025 Budget cycle, the BFI has approved nine projects with a total value of R55.5 billion, of which R15.3 billion will be funded by the BFI.

"The approved projects address a wide range of service delivery and economic growth needs, such as hospital infrastructure, transport and logistics, and water. The 2025 Budget introduces a performance-based conditional grant for certain trading service entities that provide basic services, such as municipal water. This will incentivise financial and operational reforms to improve their functioning and sustainability."

theolin.tembo@inl.co.za