President Cyril Ramaphosa has announced, during the State of the Nation Address, plans to establish a new state company to be responsible for the administration of public buildings and land.
“This year, we will begin the work to establish a professional State Property Company to transform the 88,000 buildings and five million hectares of land owned by the state into professionally managed engines of growth and development. Through Operation Vulindlela, we are working to transform the structure of our economy, to fix our infrastructure and make our electricity, water and logistics sectors more competitive and efficient,” he said.
The President also told the joint sitting of the National Assembly and the National Council of Provinces that his government was continuing to improve the governance and performance of state-owned enterprises, like Eskom, Transnet, Denel, Prasa and several others.
He said these improvements include the implementation of clear standards for appointments to ensure that the leaders of these entities have the right qualifications and experience. “We will work in a phased manner towards a centralised model for managing our SOE portfolio so that we can set standards, improve governance and ensure financial sustainability to deliver on their mandates. This includes finalising the National State Enterprises Bill in line with this approach,” said the President.
The government is also continuing with the restructuring of Eskom to establish a fully independent state-owned transmission entity. This entity, the President explained, will have ownership and control of transmission assets and be responsible for operating the electricity market. “Given the importance of this restructuring for the broader reform of the electricity sector, I have established a dedicated task team under the National Energy Crisis Committee to address various issues relating to the restructuring process, including clear timeframes for its phased implementation, It will report to me within three months,” he said.
The President added that this year government will also commence the first round of independent transmission projects to enable private investment in expanding the national grid.
Work has also begun to turn around the performance of the rail system and ports, so that businesses can get their products to global markets. Government has enabled private rail operators to access the network, which will allow different rail companies to compete and move volumes from road to rail.
“Later this year, we will initiate major public-private partnerships in our port terminals and rail corridors through a concession model that preserves public ownership while mobilising private investment and expertise. Last month, we concluded a partnership with an international port operator to manage the Durban Pier 2 Container Terminal, the largest in our country,” said President Ramaphosa.
Government hopes this partnership will result in new investment in equipment and infrastructure at the port and will bring it back to world-class standards.
On passenger rail development, the President announced ongoing preparations for the introduction of high-speed rail in South Africa, covering routes such as Johannesburg to Musina, and eThekwini to Johannesburg.
He also revealed that nearly 30 companies indicated their willingness to participate in high-speed rail corridors when government put out a request for information last year. “We are preparing to send out a request for proposals, which will introduce a new era of long-distance rail travel in South Africa, we are determined to compete in a rapidly changing global economy,” he said.
On matters of energy security and clean energy, the President said that after overcoming load shedding, the focus now is to transform the energy system to ensure long-term energy security. “For decades, our economy grew on the back of cheap electricity, but then state capture, mismanagement, inadequate maintenance and inflated megaprojects drove up the cost of electricity to businesses and our citizens. Now, with the far-reaching changes we are making to the sector and with our abundant solar and wind resources, we will be able to drive down the cost of electricity,” he said.
President Ramaphosa said regulatory changes have enabled a massive and growing pipeline of investment in renewable energy, and he projected that by 2030, more than 40 percent of the country’s energy supply will come from cheap, clean, renewable energy sources.
“We are establishing a level playing field for competition, so that we are never again exposed to the risk of relying on a single supplier to meet our energy needs,” the President said.
Sakhile Mokoena
16 February 2026
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