President Cyril Ramaphosa wants South Africa’s massive infrastructure programme to do more than build roads, railways and power lines. He says it must help rebuild the country’s manufacturing sector and create jobs.
Speaking at the SEIFSA Presidential Business Breakfast, Ramaphosa said government plans to spend about R1 trillion on infrastructure over the next three years. He described the programme as an opportunity to strengthen South Africa’s industrial capacity.
Infrastructure must support local industry
Ramaphosa said every new transmission line, rehabilitated railway, expanded port and water system should help grow the economy’s productive capacity.
He wants the infrastructure programme to support new factories, strengthen supply chains, develop skills and create employment.
The president described steel, engineering and manufacturing as central to South Africa’s economy, pointing to their role in exports, innovation, employment and business development.
SEIFSA represents more than 1,300 companies, which Ramaphosa said gives the sector significant importance as government increases infrastructure investment.
Electricity costs remain a concern
While Ramaphosa said load shedding has ended, he warned that expensive electricity remains a serious threat to energy-intensive businesses.
He cautioned that the closure of facilities such as smelters could result in lost jobs, skills and export income that would be difficult to recover.
The next phase of electricity reform is expected to focus on affordability, with a competitive electricity market planned to start operating next year.
SA needs 14,000km of new power lines
South Africa will need about 14,000 kilometres of new transmission lines over the next decade, alongside major investment in substations and related infrastructure.
Ramaphosa said this expansion should also create opportunities for South African manufacturers. He highlighted renewable energy components, batteries and green hydrogen as areas where local production could grow.
Where imports are unavoidable, government plans to use procurement measures to encourage technology transfer, research and supplier development.
Ramaphosa also urged businesses to invest in apprenticeships and skills development, saying South Africa should avoid expanding infrastructure while allowing its domestic manufacturing industry to decline.
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