Ramaphosa: Govt's R1 trillion infrastructure investment aims to correct imbalances of apartheid spatial planning

President Cyril Ramaphosa has affirmed that the government's massive investment in infrastructure is specifically designed to correct the lasting imbalances of apartheid spatial planning.

Speaking on the first day of the National Construction Summit in Boksburg, where industry leaders were joined by business and labour officials, the president detailed the administration's commitment.

"That is why the government has committed one trillion rand in infrastructure spending over the medium-term," President Ramaphosa stated. "This is the very first time our country, since the dawn of democracy, even before democracy, has committed such a large amount of money to infrastructure."

The R1 trillion investment is primarily allocated to critical sectors. A large portion of the budget is earmarked for roads, followed closely by investments in energy and water and sanitation facilities.

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President Ramaphosa emphasised that the capital injection addressed historical planning failures. This includes not only apartheid spatial planning but also long-standing deficits in the country’s network of roads, rail, and ports.

The president also issued a call to action for the construction sector, noting the substantial opportunity the investment presents.

"Now this is money that is out there for you to utilise, for you to use as enablers to turbocharge your industry to grow to higher levels," he said.

He referenced the recent medium-term budget policy statement, confirming the government’s strategic fiscal pivot.

"As the Minister of Finance indicated in the medium-term budget policy statement yesterday, we are shifting the composition of spending from consumption to investment."

The president concluded by highlighting the importance of the shift, noting that capital payments are currently the fastest-growing expenditure item on the national budget.

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