Consulting Engineers South Africa (Cesa) has highlighted the need for a concrete plan of action to translate the intentions set out in the Budget tabled by Finance Minister Enoch Godongwana, on March 12, into tangible infrastructure development and economic growth.

"The Minister's speech has outlined key priorities, and now the focus must shift to implementation. While the Budget includes encouraging proposals, including how ‘accelerating infrastructure investment is key to fostering faster inclusive growth’, the true test lies in how effectively these plans are executed to address our nation's infrastructure deficit and stimulate economic activity,” says Cesa CEO Chris Campbell.

Cesa says it acknowledges the government’s commitment to availing more than R1-trillion to infrastructure development over the next three years; reconfiguring the Budget Facility for Infrastructure to run multiple bid windows instead of just one yearly window to mobilise significant private finance and improve allocative efficiency in fiscal support; and issuing its first infrastructure bond in 2025/26. 

It points out that the Minister stated that, “To further accelerate infrastructure delivery and effectiveness, we are continuing reforms to facilitate greater private-sector participation, capital budgeting reform and alternative infrastructure financing.”

"We are waiting for our seat at the table. Consulting engineers stand ready to contribute their expertise and innovative solutions to deliver high-quality infrastructure projects. However, a supportive regulatory environment and clear lines of communication are essential to foster these partnerships effectively,” Cesa responds.

Campbell cautions that success will depend on collaborative partnerships between the public and private sectors and emphasises the importance of addressing long-standing challenges in procurement processes and governance to ensure that allocated funds are efficiently used.

"We need to see immediate steps taken to streamline procurement, reduce red tape and improve transparency in the allocation of funds. Without these reforms, the impact of the budget on infrastructure development will be limited," he says.

At the same time, Cesa says it is mindful of the fiscal constraints facing the country, compounded by geopolitical headwinds that could impact economic stability.

However, Campbell warns against restricting infrastructure spending to the point where economic growth is stifled.

"We must strike a balance. While prudent financial management is necessary, cutting back on infrastructure investment too aggressively could hinder economic recovery and worsen unemployment," he notes.

To address these challenges, Cesa says it is calling for urgent consequence management measures to curb wasteful expenditure and ensure that funds intended for infrastructure development are used effectively.

"It is about time that we worked harder on getting ‘the bang for our buck’, ensuring that every rand spent delivers tangible value," Campbell asserts.

Further, Cesa stresses the importance of prioritising maintenance on and the rehabilitation of existing infrastructure assets to maximise their lifespan and value.

"Investing in maintenance is not just fiscally responsible, it is crucial for ensuring the reliability and safety of our infrastructure networks," Campbell notes.

Cesa says it remains committed to working with the government and other stakeholders to translate the promises of the 2025 Budget speech into real improvements in infrastructure development, economic growth, and job creation for South Africa.

PUBLIC-PRIVATE PARTNERSHIPS

Meanwhile, the Steel and Engineering Industries Federation of Southern Africa (Seifsa) has welcomed the setting of the definitive date of June 1, which has been set for the implementation of the new regulations on public-private partnerships (PPPs).

Seifsa says it has long been calling for the fast-tracking of the implementation of these regulations since there were initially flagged by National Treasury 12 to 18 months ago.

The regulations, which will reduce the procedural complexity of undertaking PPPs, create capacity to support and manage PPPs and, importantly, create clear rules for managing unsolicited bids.

“These unsolicited bids are important because they have the potential to decentralise and widen the project list of projects that are critical, but typically fall under the radar.

“Historically, in a centralised planning environment, only the large headline grabbing projects receive the necessary attention; however, failures of infrastructure that requires the most urgent attention occur at localised levels,” it explains.

Moreover, Seifsa says the easing of the regulatory burden on projects of R2-billion and less will fast-track the execution of these important and localised projects.

The PPP regulations also make provision for national departments to establish sector-specific PPP units.

The federation says these units will drive private-sector participation at a sectoral level and allow for the packaging of projects that are specifically steel-intensive in the water, logistics and electricity sectors.

“It is also noteworthy that of the R1.03-trillion of public sector infrastructure spend that will be spent over the medium term, about half – R410-billion – will be channelled through the State-owned entities, renewing, once again, Seifsa’s call for a very important strategic localisation agenda that is achievable through these State-owned enterprises (SOEs).”

Seifsa says the demand from such SOEs presents a massive opportunity to drive megascale-industrialisation projects for the metals and engineering sector.