South Africa’s public-sector spending on infrastructure has continued an upward trajectory, rising to R276-billion last year from R234-billion in 2023. This is the third successive year that the country has increased its public sector capital investments, according to a Stats SA report released on Friday.
However, a detailed breakdown reveals a stark disparity in where this money is being allocated, with higher education institutions receiving the smallest share of all.
The latest Capital Expenditure by the Public Sector survey, which covers 748 institutions, including national and provincial governments, municipalities and public corporations, shows a nation hard at work rebuilding its economic backbone. The biggest movers in 2024 were the essential networks of electricity, rail and roads.
Eskom boosted its capital spending by R10.2-billion, focusing on its capacity expansion programme and ongoing projects at the Medupi and Kusile power stations. This solidifies its position as the largest spender on infrastructure in the public sector, accounting for 17.9% of the total expenditure.
The country’s crumbling rail network also received a significant allocation. The Passenger Rail Agency of South Africa (Prasa) increased its capital expenditure by R5.9-billion, allowing it to restore infrastructure on key service lines and reintroduce several routes, including the Johannesburg-Naledi and Pretoria-Pienaarspoort lines.
This effort was supported by Transnet, which recorded a R2.9-billion increase to maintain capacity on port, pipeline, and rail infrastructure.
Furthermore, the national road network benefited from a R3.9-billion rise in capital expenditure by the South African National Roads Agency (Sanral), which intensified the repair and construction of key roads.
Other notable contributors to the R41.9-billion overall rise included the metropolitan municipalities of Johannesburg, Cape Town and eThekwini, alongside key water entities.
Public corporations like Eskom and Transnet accounted for 30.6% of the total spend. Municipalities contributed 25.9%, and extra-budgetary accounts and funds like Prasa and Sanral accounted for 19.6%.
In stark contrast, the provincial government accounted for just 13.6% of capital expenditure, and the national government for a mere 6.1%.
The smallest share of all was allocated to higher education institutions, which managed just 4.1% of the total public-sector spend on fixed assets.
This minimal investment in the infrastructure of universities and colleges occurs even as the survey underscores that infrastructure forms the backbone that connects different parts of the economy.
While the nation is actively investing in the physical networks, the institutions responsible for building the country’s human capital and future intellectual pipeline are being allocated the least resources.
