Ramaphosa: Public-private partnerships key to closing South Africa's infrastructure gap

President Cyril Ramaphosa has reaffirmed that while the government is aggressively pursuing private investment to bridge the country's funding gap, the state will maintain ownership of strategic infrastructure in the rail and energy sectors.

In his latest weekly newsletter, the President noted that the 2026 Budget tabled last week is designed to drive inclusive growth by accelerating public investment.

He revealed that over the next three years, public spending on infrastructure is projected to exceed R1 trillion.

A HYBRID INVESTMENT MODEL

According to Ramaphosa, these funds will be primarily directed toward building and maintaining roads, rail lines, and water and sanitation systems, as well as expanding energy capacity.

However, he admitted that the state's coffers are not enough to meet the nation's massive developmental demands.

"Government alone cannot finance the scale of infrastructure our country needs," Ramaphosa stated.

To address this, the administration is focusing on:

Mobilising private investment: Opening more avenues for public-private partnerships (PPPs).

Strategic Oversight: Encouraging private participation in electricity and port operations while "maintaining state ownership of strategic national infrastructure."

Economic Efficiency: Lowering the cost of doing business to raise national productivity.

BOOSTING COMPETITIVENESS

The President emphasised that modernising these sectors is vital for supporting South Africa’s exports and ensuring long-term economic stability.

By integrating private sector efficiency with state-owned foundations, government aims to create a more resilient and productive economy.