Govt expect capital investment for infrastructure to increase

Government says additional capital investment for infrastructure projects will increase to more than R500 billion. This follows the allocation of an additional financial injection in the R300 billion infrastructure development plan that was announced in 2020.

This announcement was made by the Deputy Minister of Public Works and Infrastructure, Sihle Zikalala, who was answering oral questions in the National Council of Provinces (NCOP).

According to Zikalala, under the current seventh administration, there will be a sharp focus and concentration on infrastructure investments.

“In 2022, additional seven projects were Gazetted, increasing the investment needs up to approximately R540 billion. In March this year, His Excellency President Cyril Ramaphosa and our department launched a construction book at the Sustainable Development Symposium of South Africa here in Cape Town and this infrastructure book contains projects that are at the value of R148.5 billion,” says Zikalala.

The minister says these infrastructure projects vary in different economic sectors and have a potential to create employment.

“Eighteen of these projects are in the energy sector, and can create about 132,400 jobs. Three of these projects are the water sector and can create 220,000 jobs. 132 projects are in transport and are estimated at a value of R88 billion and can create 596 six jobs,” he explains.

Zikalala says these projects will have timeframes on when they will start.

“The department had created a window period for these projects which this big window will close on the 6th of December this year. Honourable members, the Melisizwe Programme was initiated to respond to emergency situations in relation to river crossing. The programme was Gazetted in July, as part of the infrastructure stimulus package to boost the economy.”

Some of the investment projects include what is called the ocean economy.

Zikalala says, “On the small harbour development, the department has revitalised 13 proclaimed fishing habour in the Western Cape. The repair and maintains programme was completed in March 2022. We created 925 jobs. And supported small medium and micro enterprises at a value of R160 million. In line to explore ocean economy, the department on the first of June 2023, started plans to develop small harbours in the Northern Cape, Eastern Cape, Western Cape and KwaZulu-Natal.”