South African President Cyril Ramaphosa is accelerating efforts to transform the country through a broad range of infrastructure projects, with the government notably increasing investment in roads, power stations, dams, and ports.
The latest budget, unveiled in Cape Town at the end of February 2026, allocates R1.07 trillion over the next three years to these extensive construction projects.
According to the Budget Review, state enterprises will contribute R445.5 billion, provincial governments R217.8 billion, and municipalities R205.7 billion to these initiatives.
South Africa endured persistent power outages for over a decade due to insufficient infrastructure, which hampered growth in Africa’s largest economy—only recently easing—because the state electricity provider struggled to meet demand. Meanwhile, congested ports and railways have impeded exports.
Cities like Johannesburg have also faced persistent water shortages, as municipal utilities struggle to maintain reservoirs, pipelines, and pumping stations or to develop adequate new infrastructure.
The following projects aim to revitalise South Africa’s landscape and restore its ageing infrastructure:
Transport and logistics - Budget for the next three years: R417.6 billion
Key priorities involve upgrading road networks and restoring both passenger and freight rail systems.
- Transnet SOC Ltd., the state-owned port and rail operator, intends to invest R76.6 billion to improve the reliability and efficiency of its logistics operations. This is expected to attract private investment and spur growth in key sectors like iron ore, manganese, coal, chrome, and automotive manufacturing.
- The Passenger Rail Agency of South Africa will concentrate on upgrading rail signalling and telecommunications, as well as investing in new trains to improve service quality.
- The South African National Roads Agency Ltd. will develop new roads and improve existing ones, while provinces have received funding to rehabilitate and reseal key routes.
Energy - Budget for the next three years: R213.6 billion
Generation capacity is expanding, battery storage is increasing, and the transmission network is being strengthened to ensure a secure supply and attract private investment, according to the National Treasury.
- Agreements with independent power producers will provide nearly 10 gigawatts of renewable energy and battery storage, along with an additional gigawatt of peaking power capacity.
- Most of these projects are already operational, with more currently under construction.
- Procurement for 2 gigawatts of new gas-fired power is in progress, with bid submissions closing in late May.
- The government has also begun selecting contractors to install approximately 1,164 kilometres of new electricity transmission lines.
Water and sanitation - Budget for the next three years: R185.2 billion
Investments will focus on increasing the bulk water supply and enhancing service delivery.
- The second phase of the Lesotho Highlands Water Project, which supplies water from Lesotho to Johannesburg and the Gauteng province, is in progress and is expected to be finished between September 2029 and June 2031.
- Two supply projects in Limpopo province are planned to be completed in 2030, with another in KwaZulu-Natal scheduled for 2032.
Education - Budget for the next three years - R58.5 billion
The Treasury allocated R50.4 billion for upgrading and building schools, ensuring they are equipped with electricity and proper sanitation.
Funds have also been allocated to modernise equipment at 50 technical and vocational colleges and to support infrastructure projects at universities.
Health - Budget for the next three years: R43.5 billion
Funds will be allocated to repair and refurbish existing hospitals and clinics, as well as to construct new healthcare facilities.
- A new 488-bed hospital in Polokwane is expected to open in 2028, offering specialised medical services to the province.
- A 224-bed hospital in Limpopo is being replaced, while two more hospitals are under construction in the Western Cape.