President Cyril Ramaphosa has announced that his government is planning to grow the economy through infrastructure investment, public-private partnerships and job creation.
Ramaphosa was speaking at the State of the Nation Address (Sona) in the National Assembly on Thursday evening. It was his first Sona as president of a coalition government dubbed the government of national unity.
R940bn to be spend on building and revitalising infrastructure
The president said the government has committed to spending more than R940-billion on infrastructure over the next three years, with state-owned enterprises contributing R375-billion of the budget.
Ramaphosa said the funds will go towards revitalising roads and bridges, constructing dams and waterways, and modernising ports and airports to boost economic activity.
“To achieve higher levels of economic growth, we are undertaking massive investment in new infrastructure while upgrading and maintaining the infrastructure we have,” he said.
“We are developing innovative ways of funding infrastructure. We are engaging local and international financial institutions and investors to unlock R100-billion in infrastructure financing.”
Plan to revitalise small harbours
To fast-track investment readiness, Ramaphosa said the government has launched a project preparation bid window, ensuring that the projects are well-structured and appealing to investors.
Moreover, revised regulations for public-private partnerships will facilitate greater private sector involvement, unlocking additional expertise and funding, he said.
“Through the Infrastructure Fund, 12 blended finance projects worth nearly R38-billion have been approved in the last year. These are projects in water and sanitation, student accommodation, transport, health, and energy.
“The construction of the Mtentu Bridge continues. This bridge will rise above the river between Port Edward and Lusikisiki and will become the tallest bridge in Africa,” the president said.
He noted that another major project is the Polihali Dam, which will channel 490-million cubic metres of water annually from the Lesotho Highlands into the Vaal River system.
This system, he said, is crucial for securing water supply to multiple provinces, ensuring sustainability for years to come.
South Africa is also working with international partners to revitalise small harbours along the coast. This initiative aims to unlock economic opportunities for coastal communities.
Support for black-owned businesses
Ramaphosa reaffirmed the seventh administration’s commitment to economic transformation, emphasising the urgent need to create a nation where prosperity and opportunity are shared by all South Africans.
“For many decades, our economy has been held back by the exclusion of the vast majority of the South African people.
“Black South Africans were deprived of land, of capital, of skills, of opportunities. Our economy was starved of the potential of its people,” he said.
He promised that the government will establish a Transformation Fund worth R20-billion per year for the next five years to support black-owned businesses and small enterprises.
This initiative aims to provide financial backing to historically marginalised entrepreneurs, ensuring they have the necessary resources to contribute meaningfully to the economy.
“In November last year, we launched the National Skills Fund Disabilities Programme. In its first phase, this transformative initiative will empower over 10 000 persons with disabilities through tailored training programmes, stipends, and specialised tools.
“This is part of the work we must undertake as business, government, labour, and civil society to enable persons with disabilities to play an important part in the economy of our country.”
