R940 Billion Infrastructure Boost: SAICE Calls For Urgent Action Amid Water Crisis And Project Delays
The South African Civil Engineering Institute (SAICE) welcomes the government’s commitment to infrastructure investment outlined by the National Address (SONA) in 2025. Over the next three years, more than R940 billion of the infrastructure was announced and R375 billion of state-owned enterprises were designated, reflecting a much-needed focus on revitalizing the South African built environment. Since 2024, SONA 2025 outlines a larger financial commitment in terms of infrastructure regulations. Infrastructure development remains the main driver of economic growth, and the emphasis on public-private partnerships, hybrid financial models and basic maintenance programs encourages Saice.
Infrastructure investment and economic growth
The commitment to investing in critical infrastructure, including roads, bridges, ports and water projects, is a positive step. Approved 12 hybrid financial projects worth nearly R38 billion and received R100 billion from local and international investors, highlighting the potential to unlock further growth. But while these investments are huge, Saas notes that they are still below the level recommended by the World Bank, which estimates South Africa needs annual infrastructure investments, accounting for 8.7% to 11.2% of GDP to meet its Sustainable Development Goals .
Saice CEO Sekadi Phayane-Shakhane stressed the importance of not only funding new projects, but also ensuring its effective implementation and proper maintenance of existing infrastructure. “We encourage the government to work closely with SAICE experts to simplify the implementation of infrastructure as this is the most effective way to turn these programs into South Africans,” she said.
Water infrastructure: Resolving emergency crises
Water security remains a key challenge for South Africa. The government’s commitment to obtain R23 billion for seven large water projects including the 2 Polihali Dam in Lesotho Heights is commendable. The project is expected to add 490 million cubic meters of water each year to help address some of the country’s growing water demand. In addition, progress on the Ntabelanga dam on the Umsimvib River will bring much-needed water resources to the Eastern Cape.
However, Sass urged the government to take a more aggressive approach to maintaining water infrastructure. Reports show that 45% to 55% of South Africa’s water is lost due to leaks and aging infrastructure. It is estimated that Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs R
In addition, South Africa’s water board is still in financial difficulties, with debts exceeding R23 billion. If not resolved, this can cause water supply failures in multiple provinces. To ensure the sustainability of bulk water systems, it is necessary to adopt a more structured financial model, including state-funded water board funds, rather than relying solely on municipal payments.
Governance, maintenance and organizational capabilities
SONA acknowledges that infrastructure conditions across roads, water, sewer systems, landfills, hospitals and schools have deteriorated. Recognizing poor political and financial management in poor cities is a step in the right direction. The introduction of water and electricity services to the fence can help improve efficiency, but long-term success will depend on their professional management and isolation from political intervention.
Saice welcomes the government’s renewed focus on state-owned enterprises (SOEs) and the need to rebuild its institutional capacity. However, the country must avoid a cycle of allowing infrastructure and institutions to collapse before corrective measures are taken. Delays in key projects, such as Lesotho Highlands Phase 2 and the Ntabelanga Dam, illustrate the broader challenges of inefficient project execution. The government must ensure that the revised public-private partnership regulations allow the integration of private sector expertise from the planning stage rather than after approval.
Energy, logistics and industrial impacts
While the load reduction in the last 300 days is a welcome development, Saice urges transparency to the costs associated with emergency diesel use. The sustainability of current power stability must be assessed, especially given the impact of the steel manufacturing industry facing huge unemployment.
In addition, while the government has been committed to improving railway and port logistics, delays in private concessions, such as the operation of the port of Durban, have also brought attention to the implementation timeline. Effective logistics is crucial to economic recovery and further delays may hinder growth efforts.
Infrastructure funding and demand for greater ambitions
The government’s R940 billion commitment to infrastructure over three years remains lower than the needs needed to meet the country’s needs. For example, estimates suggest that it would take R900 billion to bring surfaced South Africa and gravel roads to “good” conditions alone. In addition, the target of the 3% growth rate set by the National Government of Solidarity (GNU) lacks ambitions. Saice recommends setting a more aggressive growth target, such as 7%, which will require bold change actions across multiple sectors.
Call for greater cooperation
In 2025, Saice President Friedrich Slabbert said: “…Sona offers an encouraging commitment to infrastructure development in 2025, but the main challenge remains execution. . Many initiatives, such as regional development models conceptualized a decade ago, are striving to gain appeal. South Africa must go beyond policy announcements and enter into effective, results-oriented project implementation.”
Saice urges the government to interact with civil engineering professionals and industry experts to shape infrastructure solutions. South Africa’s infrastructure challenges can only be addressed meaningfully through collaborative approaches including the private sector, academia and professional institutions. As the country looks to the future, Saice remains committed to expertise in ensuring infrastructure investment translates into real, measurable improvements for all South Africans.
For more information, please visit https://saice.org.za
