2 March 2026
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INFRASTRUCTURE INVESTMENT AND JOB CREATION
Good morning colleagues, Chairpersons, Dr Maimane, Hon Ndlovu, and Hon Zibi
Members of the media
Mr Mothapo and the entire Parliamentary Communications Team
Fellow South Africans.
I will confine my talk to infrastructure issues. But let me start with this:
This media briefing takes place against the backdrop of war in the Middle East, sparked by the US and Israel, which attacked Iran. Let me reiterate the statement of the ANC: “The intensification of hostilities carries serious humanitarian, diplomatic, and economic consequences”. This war has a direct impact on the Asian, African, and South African economies in particular. The Strait of Hormuz, one of the world's most important shipping routes, is now facing disruption. Nearly one-fifth (20 million barrels of oil per day) of the world’s oil supply passes through this strait. Any tension or disruption in the Strait of Hormuz can affect oil prices worldwide, influencing transport costs, industries and household expenses. We condemn violations of international law because they will have serious implications for the budget. We live in a global village, so we cannot say it does not affect us. We are very worried because this has a direct impact on our economy and the countries we trade with.
Coming back home, we welcome the progressive budget tabled by the Minister of Finance, Hon Enoch Godongwana. The 2026 Budget represents a turning point. After years of fiscal pressure, sovereign downgrades, and slow growth, South Africa has reached a critical milestone. Public debt is stabilising. Borrowing costs are easing. Confidence is improving.
But let me be clear: fiscal stability means nothing if it does not translate into jobs.
This Budget recognises that the real test of recovery is whether South Africans can find work, whether businesses can expand, and whether communities can see tangible improvements in infrastructure and services. That is why infrastructure investment sits at the centre of this Budget.
The government plans to invest R1.07 trillion in infrastructure over the medium term. This is not a minor adjustment. It is a decisive shift toward growth-enhancing investment. Of this amount:
- R577.4 billion will be invested by public entities.
- R217.8 billion by provinces;
- R205.7 billion by municipalities.
This scale of investment signals that we are serious about rebuilding the productive capacity of the economy.
In 2025, the government successfully raised R11.8 billion through an infrastructure bond. That is not just a financing instrument; it is a vote of confidence by investors in South Africa’s reform path. Infrastructure creates jobs immediately in construction, engineering and maintenance.
But more importantly, it creates the conditions for sustainable job creation.
When rail works, exporters grow.
When electricity is reliable, factories expand.
When water systems function, industrial zones attract investment.
Without infrastructure, growth is stalled. Without growth, jobs cannot be created. This Budget understands that reality.
Energy reform remains fundamental.
The establishment of the Credit Guarantee Vehicle, supported by the National Treasury and the World Bank, will accelerate investment in transmission infrastructure, a critical bottleneck to expanding electricity supply.
Transmission capacity unlocks new generation projects. New generation projects support industrial expansion. Industrial expansion creates jobs. The Committee views this as one of the most strategically important institutional developments in the infrastructure space.
We will monitor its implementation closely to ensure that it delivers.
South Africa cannot grow if its ports and railways do not function.
Progress in freight rail reform, open-access arrangements, and private-sector participation marks a decisive step forward.
PRASA’s corridor recovery programme aims to increase annual passenger trips from 77 million to between 250 and 450 million over the medium term.
Reliable commuter rail reduces transport costs for workers and improves access to economic opportunities. Logistics reform is not an abstract policy; it affects the daily lives of working South Africans.
Municipal dysfunction has undermined infrastructure delivery and economic growth.
Another area that is very important for infrastructure development is local government. The allocation of R27.7 billion over the medium term from the Municipal Infrastructure Grant is not cosmetic. It represents a structural intervention. We have seen the water crisis in Johannesburg. What we are seeing now in Johannesburg is what many rural communities face daily. It is only that now it is at the metro level and therefore receives attention. The attention metros are receiving must also be given to rural communities. Funds collected for water must be invested in maintaining and expanding those systems.
We also welcome the concept of public-private partnerships, which will bring much-needed resources from both the public and private sectors to rail, ports, energy, and other areas where infrastructure services are provided. It is not the first time that the private sector has been involved in public infrastructure. Almost all the toll roads in South Africa were built through public-private partnerships under the Build-Operate-Transfer model. The private sector is not given ownership of the property. They are granted a concession to build, operate and then transfer it back to the owner under agreed conditions.
For South Africa to work, we have to attract capital from the international community. We also have to mobilise our domestic private sector, which has significant capital, to invest in infrastructure development. Infrastructure allocations must translate into projects on the ground and must translate into employment.
We believe that the R1 trillion-plus presented can create jobs, provided the infrastructure rollout is labour-intensive. We are not saying that machines should not be used, but wherever possible, we must ensure that people are employed in the rollout of these projects.
If implemented with discipline and urgency, this programme can restore investor confidence, improve service delivery and, most importantly, create sustainable employment. I reaffirm that infrastructure-led growth remains the most important tool for reducing unemployment, especially among young people.
Youth unemployment in South Africa remains very high, and as public representatives, we are deeply concerned. We are also concerned when we vote for budgets and departments underspend. Money that is not spent is denying much-needed jobs to young people who are out there. There are many graduates who are unemployed.
As parliamentary committees, we will play our oversight role to ensure that the money is spent for the purposes for which it was allocated, and that there is value for money on the ground.
Thank you very much.
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