By: Ntobeko Nyawo - chief financial officer at Redefine Properties

“Infrastructure investment remains the foundation upon which long-term economic growth, improved service delivery and job creation are built.”

That was an important reminder delivered by Finance Minister Enoch Godongwana during South Africa’s 2026 Budget Speech, which outlined the national government’s fiscal strategy and key spending priorities to enhance economic activity. A lot was riding on Minister Godongwana to deliver good news for both South Africans and businesses, and the highlights included a narrowing of the budget deficit, projected real economic growth of 1.6% in 2026 (up from 1.4% estimated in 2025), and structural reforms that aim to strengthen financial accountability and stability.

There was a lot to unpack with this year’s speech, but an overarching theme is the prioritisation of infrastructure investment and development. Investing in growth-enhancing infrastructure is a pillar of promoting faster economic growth. And the speed at which the economy grows is largely driven by long-term gross capital formation. It is the foundation that SA’s economy need to get right to attain its high growth GDP potential of 5% in the long run.

The stage is set for major changes. By building on the gains we’ve made in eliminating bottlenecks and revitalising key national assets, and with the input of key stakeholders and resulting development projects, South Africa has the potential to deliver a powerhouse performance.

Building a country driven by equity, value and efficiency

Wednesday’s Budget Speech signalled the government’s commitment to structural reforms alongside its sound fiscal consolidation strategy, which bodes well for SA’s path to investment grade re-rating in the medium term. Said reforms touch every corner of the economy, from stabilising energy supply and eliminating bottlenecks in logistics, to switching to a performance-linked utility model for water and electricity services and increasing access to affordable housing.

For citizens, increases in tax-free annual investment and retirement fund deduction limits aim to help ease financial burdens while also promoting a culture of saving and financial stability. That culture also goes for the government itself, having identified R12 billion in savings over the medium term and declaring every programme and allocation must demonstrate value and efficiency.

These principles of fiscal integrity need to be present across all corners of South Africa’s economy. At the same time, we need to accelerate trade and commerce by seizing structural opportunities that our government is creating in infrastructure investments through the reimagined public-private partnership models.

Priority: Strengthen our ability to move people and goods

Key to achieving the government’s plan is its ability to enable and stimulate economic activity, and key to that is investing in growth-enhancing infrastructure. Over the medium term, public-sector spending on infrastructure will exceed R1 trillion, with the transport and logistics sector accounting for the largest spending share. SANRAL is expected to focus on long-term resilience of South Africa’s 27,000-kilometre road network, while PRASA will continue implementing its rail corridor recovery programme and modernising core infrastructure.

All this follows key milestones in 2025 for the transport and logistics sector. Those milestones included the issuance of South Africa’s first infrastructure and development finance bond, raising R11.8 billion to support the government’s contribution in Budget Facility for Infrastructure-approved projects. 

Amendments to public-private partnership (PPP) regulations have opened the door to further participation by the private sector, and the result is a business environment that enables private stakeholders to be a positive contributing force in the country’s economic turnaround.

Empowering commerce, one project at a time

If anything, the 2026 Budget Speech affirms SA’s positive fiscal credibility trajectory, while opening up broader collaboration with the private sector to unlock long-term economic growth. That said, improving market conditions and rebounding business confidence are not just reflected in the speech and government objectives, but also in the recent performance and growth of commercial and industrial real estate.

Improving transport networks and prioritising public infrastructure serve to strengthen properties and developments that facilitate and enhance economic activity. Shopping malls, office parks and industrial hubs have their part to play in macroeconomic development and creating employment opportunities, all the while benefitting from improvement in service delivery and leveraging the country’s revitalised ability to move people and goods.

Developments such as Cato Ridge, South Africa’s first large-scale, privately funded freight corridor and industrial hub, reflect the efforts of stakeholders so far and serve as a case study for other national projects nationwide. Cato Ridge is a space that supports growing public and private capital investments and is integrated with national road and freight networks, and forms part of a commercial and industrial property ecosystem built and optimised for empowering economic activity and growth.

Minister Godongwana closed off this year’s Budget Speech with a declaration that, together, we can build a more equal, more prosperous economy. By prioritising investments in growth-enhancing infrastructure and pursuing fiscal decisions that enable public-private partnerships, empower ordinary citizens, and enshrine principles like accountability and efficiency, that economic vision starts to take shape.