Ramaphosa’s investment czar says South African infrastructure in dire state
The head of South African President Cyril Ramaphosa’s infrastructure and investment office warned that the nation’s power, rail and water reticulation systems are in a dire state and that fixing them will take years even if immediate action is taken.
In a paper entitled South Africa’s Infrastructure Emergency: An Urgent and Collaborative Intervention, Kgosientsho Ramokgopa gave the country’s infrastructure a D rating. Ports, freight-rail lines, power plants, metropolitan roads, state schools and waste collection were all deteriorating, he said. Public hospitals were also assessed to be in a poor state.
“The hemorrhaging of technical and financial engineering skills in the country, the collapse of institutions and the dire ramifications of state capture have all conspired to degrade the quality of the country’s infrastructure offering,” Ramokgopa said, using a local term for State corruption.
South Africa is currently in the grip of its worst-ever power cuts, while coal exports fell to a 30-year low in 2022 because of the poor performance of the national freight rail company. That, coupled with poor water infrastructure and inefficient ports, is stifling investment.
The government isn’t in a good position to tackle the problems, Ramokgopa said in his paper, which was reported on earlier Wednesday by Johannesburg-based newspaper, Business Day.
“Insufficient capacity, skills and an inefficient regulatory and policy framework hamper government’s ability to develop a robust, credible and bankable project pipeline,” he wrote. “Government currently lacks the technical expertise and institutional landscape to attract private sector finance.”
South Africa’s National Development Plan, adopted by the government in 2012, set a target for a broad measure of infrastructure investment, or gross fixed capital formation, at 30% of gross domestic product but it hasn’t been met. In 2021, the ratio stood at 14.1%, compared with 19.7% in 2008, and for the public sector it was below 8%.
Energy provision was identified as the government’s most obvious infrastructure failing.
“In terms of the state of energy, it is no longer a crisis but rather, an emergency,” Ramokgopa said. “The country’s current inability to provide sustainable and reliable sources of power has long posed an immediate risk, with the situation drastically deteriorating on a daily basis.”
Ramokgopa laid out a range of remedies, including upgrading his office — Infrastructure South Africa — to a state-owned enterprise and giving it control of government infrastructure projects across all departments and state companies.
He also proposed establishing a dedicated intervention fund to tackle problem areas, allocating money to the national infrastructure fund in the annual budget and giving private companies concessions to run unutilized state infrastructure. Private investment in bulk infrastructure should be encouraged, he wrote.
Still, there is no quick fix.
“The spillover effects of infrastructure delivery will take approximately four to five years before the core benefits are realized,” Ramokgopa wrote.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation