Infrastructure development is poised to be a key driver of South Africa’s economic recovery, with a range of high-priority projects across the energy, water, and transport sectors targeted for completion by 2025. Infrastructure South Africa’s construction portfolio, valued at R158.54 billion, aims to stimulate economic growth, create jobs, and improve service delivery across the country.
The country’s energy sector is undergoing a critical transformation to address persistent electricity shortages. Eighteen major energy projects, worth R38.32 billion, are set to advance renewable energy initiatives, such as the Upington Aries-Upington 400kV line and the Erica MTS + Phillipi-Erica 400kV line projects, which will begin procurement soon. Additional projects like the Komati Battery Energy Storage and Medupi Flue Gas Desulphurisation are also crucial in integrating cleaner, more reliable energy sources.
According to government sources, these initiatives are expected to not only stabilize the national grid but also create 144,000 job opportunities and contribute R58.72 billion to South Africa’s gross value added (GVA).
In the water sector, addressing water scarcity and outdated infrastructure is a priority. Three major projects with a combined budget of R32.10 billion will enhance water supply systems. Notably, the uMkhomazi Water Scheme aims to increase the Mgeni Water Supply System’s capacity by 220 million cubic meters annually, benefiting both urban and rural communities. The Pilanesberg Bulk Water Supply Scheme Phase 2 is another major initiative to ensure reliable water access in Limpopo and the North West provinces.
Transport infrastructure sees the largest share of investment, with R88.1 billion allocated to 132 projects across roads, rail, ports, and airports. These projects include the Botswana Rail Link, designed to enhance cross-border trade, and the Coale 81Mtpa project to improve coal export logistics. There are also significant upgrades to major airports, such as OR Tambo International and Cape Town International, to accommodate growing passenger demand.
These infrastructure initiatives, aligned with South Africa’s National Infrastructure Plan 2050, are expected to generate over 860,000 jobs and contribute significantly to the economy. With the government’s focus on inclusive development and sustainable economic growth, these projects promise a revitalized construction sector and enhanced service delivery across the nation.