The South African Government adopted a National Infrastructure Plan in 2012 that intends to transform our economic landscape while simultaneously creating significant numbers of new jobs, and to strengthen the delivery of basic services. The plan also supports the integration of African economies.
Government will over the three years from 2013/14 invest
R827 billion in the building of new and the upgrading of existing infrastructure, Minister of Finanace Pravin Gordhan announced in his 2013 Budget Speech.
These investments will improve access by South Africans to healthcare facilities, schools, water, sanitation, housing and electrification. On the other hand, investment in the construction of ports, roads, railway systems, electricity plants, hospitals, schools and dams will contribute to faster economic growth. The biggest chunk of the investment in infrastructure will continue to come from Eskom which will invest R205.1 billion over the next three years. Eskom's new power stations, Medupi and Kusile, are expected to start producing electricity in 2014 and 2015 respectively.
18 years into our democracy, there are still major challenges of poverty, unemployment and inequality.
The New Growth Path sets a goal of five million new jobs by 2020, identifies structural problems in the economy to be overcome and points to opportunities in specific sectors and markets or "jobs drivers". The first jobs driver is infrastructure: laying the basis for higher growth, inclusivity and job creation.
In order to address these challenges and goals, Cabinet established the Presidential Infrastructure Coordinating Committee (PICC), to:
Under their guidance, 18 strategic integrated projects (SIPS) have been developed.
By January 2013, work had commenced on all 18 SIPs. By the end of March 2013, government will have spent about R860 billion rand on infrastructure development since 2009.
Some of the highlights of water and sanitation delivery in 2012 include:
In a media briefing on 7 March 2013, Minister of Economic Development Ebrahim Patel listed these achievements:
The SIPs cover social and economic infrastructure across all nine provinces (with an emphasis on lagging regions).
The SIPs include catalytic projects that can fast-track development and growth. Work is being aligned with key cross-cutting areas, namely human settlement planning and skills development.
The SIPs comprise:
| Primary Mineral Reserves | |
|---|---|
| Coal | 18 bn tons |
| Chromite | 5,5 tons |
| Platinum | 6 323 tons |
| Palladium | 3 611 tons |
Work has already started on a massive logistics corridor stretching between Durban and the central provinces of the Free State and Gauteng. Most of the projects that form part of the second Strategic Infrastructure Project (SIP 2), also known as the Durban-Free State-Johannesburg Logistics and Industrial Corridor, are still in the concept or pre-feasibility stage, but construction has already started on several projects.
These include:
Work has also started on the R250 million Harrismith logistics hub development to set up a fuel distribution depot, as well as on phase one of the new multi-product pipeline which will run between Johannesburg and Durban and transport petrol, diesel, jet fuel and gas.
The aim of these projects and others which form part of SIP 2, is to strengthen the logistics and transport corridor between South Africa's main industrial hubs and to improve access to Durban's export and import facilities. It is estimated that 135 000 jobs will be created in the construction of projects in the corridor. Once the projects are completed a further 85 000 jobs are expected to be created by those businesses that use the new facilities.
Coordinate planning and implementation of public transport, human settlement, economic and social infrastructure and location decisions into sustainable urban settlements connected by densified transport corridors. This will focus on the 12
largest urban centres of the country, including all the metros in South Africa. Significant work is underway on urban transport integration.
Improve investment in agricultural and rural infrastructure that supports expansion of production and employment, small-scale farming and rural development, including:
Improving the learning environment will strengthen outcomes especially in rural schools, as well as reduce overcrowding.
SKA is a global mega-science project, building an advanced radio-telescope facility linked to research infrastructure and high-speed ICT capacity and provides an opportunity for Africa and South Africa to contribute towards global advanced science projects.
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