R64 billion infrastructure pipeline set to transform South African development

THE Department of Public Works and Infrastructure, working with Infrastructure South Africa, has established an infrastructure pipeline valued at R64 billion.

Opening the first meeting of the Minister and MECs (MINMEC) of Public Works and Infrastructure across all nine provinces for the seventh administration in Cape Town on Tuesday, Minister Dean Macpherson outlined projects spanning critical sectors such as energy, water, logistics and housing, all set to be included in this pipeline in the years ahead.

"These projects have been carefully selected because we believe they will deliver maximum impact both by creating jobs for our people and by providing essential services to our communities in dire need.

It is now common knowledge that the state does not have sufficient funds to support these ambitious infrastructure programmes. Therefore new and innovative funding solutions are essential, including blended finance and public-private partnerships. These models will allow us to leverage public and private investments, reduce risks for investors while ensuring projects are finished on time and on budget," he said.

The meeting reflected on turning around the state of infrastructure in the country, the vision of turning South Africa into a construction site and using public assets for the public good, with the aim of contributing meaningfully to economic growth and creating thousands of new jobs.

The department welcomed the Finance Minister's announcement during the MTBPS that reforms were underway to make it easier for the private sector to invest in public infrastructure projects.

However, Macpherson noted that none of these interventions will succeed unless the department strengthens its capacity to oversee and execute projects efficiently. This involves not only refining ISA's role as the single point of entry for priority infrastructure projects, but also enhancing oversight and eliminating inefficiencies that have slowed projects in the past.

"By aligning all of these elements, we hope to significantly increase the growth of gross fixed capital formation, a proven driver of sustained economic growth and job creation globally," Macpherson added.

The minister said that the department holds an unparalleled portfolio of assets, from government buildings to extensive tracts of land. Their second key focus will be to ensure these assets serve the public good.

"For too long state-owned properties have been neglected or mismanaged, becoming liabilities rather than assets. Our approach is to repurpose these properties ensuring they contribute to local economic development, reduce urban decay and provide value for surrounding communities."

Across the country, the minister said they were establishing task teams in cities such as eThekwini to identify and unlock the potential of under-utilised assets.

"By optimising these resources, we can transform idle properties into productive spaces that generate revenue which can be redirected to fund essential services like schools and hospitals. A key part of this initiative is to reform the property management trading entity to make it commercially viable, enabling it to generate income for the state which can then be invested into improving social infrastructure."

He also said the EPWP is a vital programme to alleviate poverty and create opportunities in many communities across the country. However, he noted it requires reform to ensure it truly empowers recipients without opening the door to abuse.

"Our third key focus would be to reform the programme to ensure it delivers on its mandate," he said.

"Today's Inaugural MINMEC meeting for the Department of Public Works and Infrastructure marks a defining moment in our journey to revitalise South Africa's infrastructure landscape by getting more cranes into the sky and more shovels in the ground. It builds on the momentum that we have established in the department over the last four months to truly turn the department into an economic delivery unit for SA, igniting growth and creating thousands of new jobs."

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