South Africa’s infrastructure has been under significant strain for years, with inefficiencies and underinvestment hampering its ability to meet the needs of a growing population. Municipalities have struggled to manage infrastructure effectively, with the Financial and Fiscal Commission reporting that only 4% of the total value of municipal assets was spent on maintenance in 2021/2022. This has left much of our infrastructure at risk of collapse.

Rail and port inefficiencies are a glaring example. The Bureau of Economic Research (BER) at Stellenbosch University estimates that state-owned Transnet’s poor performance has reduced GDP growth by 3% annually. Freight rail inefficiencies have forced industries to switch to road transport, creating further congestion and degradation of road networks. Transnet’s rail capacity sits at 151.7 million tonnes, but with critical concessions, it could add another 60 million tonnes.

Similarly, our water systems face mounting pressure. With 40% of water lost through leaks, the system is not just inefficient but also unsustainable. Severe weather events, like the recent floods in KwaZulu-Natal, have compounded these issues, causing R411 million in damages and leaving many residents without homes, power, or access to clean water. The urgency to address these vulnerabilities cannot be overstated.

According to Roy Havemann, a senior economist at the BER’s Impumelelo Economic Growth Lab, the lack of stable water supply in major metro areas also significantly drags consumer and business confidence. The central bank’s November report highlighted the worsening water crisis alongside degrading rail, port, and road networks as key challenges that must be urgently addressed.

Why Infrastructure Matters

Infrastructure is more than just pipes, roads, and railways; it’s the backbone of economic growth and social equity. A World Bank study highlights that investing 1% of GDP into infrastructure can yield an economic growth rate of 3%. This means that addressing South Africa’s infrastructure challenges is not just a necessity but a transformative opportunity.

For example, better water management could significantly enhance the quality of life and business operations. The uMkhomazi Water Scheme aims to boost water supply by 220 million cubic metres annually, supporting both urban and rural communities. Similarly, improving freight rail and port systems can unlock trade potential, reduce logistics costs, and alleviate pressure on overburdened road networks.

Addressing these issues is not just about economic gains. Well-maintained infrastructure ensures access to essential services, reduces inequality, and builds resilience against climate-related shocks. As Finance Minister Enoch Godongwana recently noted, infrastructure investment is crucial to “expanded access to quality basic services.”

The Role of Weather in Infrastructure Vulnerabilities

The escalating frequency of severe weather events underscores the fragility of our infrastructure. In KwaZulu-Natal, heavy rains have washed away bridges, damaged homes, and left entire communities isolated. Disasters like these reveal the vulnerabilities in our planning and maintenance systems. Climate-resilient infrastructure must become a priority.

For instance, incorporating predictive maintenance technology—such as sensors to detect potential failures in water pipes or electricity grids—can mitigate the impact of severe weather. This is already being explored in countries like the Netherlands, where advanced infrastructure management systems prevent catastrophic failures despite low-lying areas being prone to flooding. South Africa can draw valuable lessons from these global best practices.

Building Momentum Through Collaboration

While the challenges are immense, progress is possible through collaboration. The BER emphasises the importance of partnerships between the government, private sector, and international stakeholders. Public-private partnerships (PPPs), for example, are gaining traction as a mechanism to address skill and funding gaps. Recent reforms to PPP regulations aim to streamline processes and encourage private-sector involvement.

Some promising projects are already underway. The City of Johannesburg’s Alternative Wastewater Treatment Technology PPP, set to convert 500,000 tonnes of solid waste into energy annually, exemplifies how innovative collaborations can address multiple challenges simultaneously. Similarly, Transnet’s Cape Town Container Terminal expansion and the Ukuvuselela Gauteng-Eastern Cape High-Capacity Rail Corridor highlight efforts to modernise critical logistics infrastructure.

The Four Major Issues Holding South Africa Back

South Africa must invest R200 billion to revive its frayed railways and an additional R100 billion to upgrade water infrastructure. Tackling bottlenecks in electricity and governance is equally critical to achieving an economic growth target above 3% per year, according to the BER. Without these reforms, Africa’s most industrialised nation risks remaining stuck in low gear, with average growth projected at less than 2% between 2026 and 2029.

Infrastructure challenges have already forced industries to shift from rail to road transport, compounding congestion and degradation. The recently approved blueprint to open rail networks to private operators is a step forward, but implementation will be key. The BER’s modelling suggests that effective reforms could push GDP growth to 3.3% by 2025, but the crux lies in swift and decisive action.

A Call to Action

The state of South Africa’s infrastructure is a shared responsibility, requiring both leadership and innovation. As we tackle these issues, Decusatio remains committed to driving impactful solutions. Through our partnership with Solana, we offer solar and water solutions designed to support municipalities, businesses, and communities in building resilience. These solutions not only address immediate infrastructure needs but also contribute to long-term sustainability.

We invite you to join us in this mission. Whether you’re a policymaker, business leader, or concerned citizen, your role in advocating for and implementing sustainable infrastructure solutions is vital. Together, we can transform challenges into opportunities and lay the foundation for a prosperous South Africa.