Major boost for infrastructure investment

Source: Government of South Africa

Major boost for infrastructure investment

Public Works and Infrastructure Minister Dean Macpherson has welcomed four major infrastructure investment opportunities, which have been presented directly to local and international Development Finance Institutions and Multilateral Development Banks.

The presentation was held at the Infrastructure South Africa’s Development Partners Forum Deal Pitching Session, which Macpherson chaired in Gauteng recently.

The four projects and programmes, spanning housing, aviation, bulk water and energy infrastructure, collectively require more than R53 billion in debt finance.

The Development Partners Forum was established by Infrastructure South Africa as a platform to connect infrastructure project sponsors with institutions capable of providing financing, technical expertise, risk-sharing instruments and advisory support. 

Friday’s session was specifically structured to move beyond broad discussions by allowing financiers to interrogate live projects, assess investment readiness and identify opportunities for financing and partnership.

The support has also been extended to private sector-led infrastructure projects and is aligned with the national objective of increasing gross fixed capital formation to 30% of gross domestic product, with private sector investment expected to contribute 20 percentage points towards this target. 

The investment opportunities presented, located across different parts of the country, span major housing developments, aviation infrastructure, bulk water provision and energy infrastructure, with a combined debt finance requirement of more than R53 billion.

“Friday’s session demonstrated exactly what Infrastructure South Africa should be doing: taking credible infrastructure projects and putting them directly in the room with institutions that have the ability to finance and support them. 

“More than R53 billion in debt finance requirements were presented to development partners across just four major infrastructure opportunities,” Minister Macpherson said

“These are not abstract projects on a wish list. They represent the kind of infrastructure South Africa needs to grow the economy, strengthen basic services, unlock private investment and create employment. This is the type of investment we need to mobilise if we are going to turn South Africa into a construction site,” Macpherson said.

Macpherson said the Development Partners Forum formed part of the broader work underway at Infrastructure South Africa to build a stronger pipeline of bankable and investment-ready infrastructure projects. 

Infrastructure South Africa is already providing project-preparation support to more than 26 infrastructure projects with an estimated capital value of R148 billion, while 15 supported projects have completed their preparatory work.

Following Friday’s session, Infrastructure South Africa will facilitate targeted follow-up engagements between interested development partners and project sponsors to support transaction structuring, explore financing participation, address risk-allocation requirements and agree practical next steps towards implementation.

“Government cannot finance South Africa’s infrastructure ambitions through the fiscus alone. We need to mobilise development finance and private capital alongside public investment, and we need to make it easier for investors to find properly prepared projects that they can actually finance. 

“The measure of success for these engagements will not be how many presentations we hold, but how many projects ultimately reach financial close and move onto construction sites. We want to convert pipelines into projects, projects into investment, and investment into shovels in the ground and cranes in the sky across South Africa,” Macpherson said.

The session, Macpherson said, demonstrated the increasingly important role Infrastructure South Africa is playing in connecting credible, prepared infrastructure projects with investors and financiers to help move projects towards financial close and construction. – SAnews.gov.za

Edwin

0

Deputy Minister in the Presidency leads engagement with Eastern Cape province

Source: Government of South Africa

Deputy Minister in the Presidency leads engagement with Eastern Cape province

Deputy Minister in the Presidency Kenny Morolong has hailed an engagement with the Eastern Cape Provincial Executive Council on Thursday as “successful” – signifying a step forward in ensuring unified government communication, strengthening nation branding, and boosting community media support across the province.

The Deputy Minister met with the council in East London, and was accompanied to the province by delegates from the Government Communication and Information System (GCIS), the Media Development and Diversity Agency (MDDA) and Brand South Africa (Brand SA) – where discussions around the Government Communication Policy ensued. 

The engagement follows similar sessions held with four other provinces and is aimed at bolstering coordination of government communication, nation branding, and community media support in the province.

“We are quite elated with how the provincial executive council has responded to our engagements and we look forward to a collaboration between GCIS, the province of the Eastern Cape, together with our entities Brand SA and MDDA.

“There is common understanding in how the Government Communication Policy will be implemented. As we wrap up these engagements, we will also present an implementation plan before Cabinet. But we can say, with certainty that we are quite encouraged by how the discussions have ensued and the support given to the Government Communication Policy by the Eastern Cape provincial government,” Morolong told the media on the sidelines of the session.

Speaking directly to the provincial council, Morolong described the policy as “our marching orders” which set out the rules, procedures and processes for government communication.

“The policy is aligned with MTDP 2025 and recognises communication as a strategic enabler of a capable, ethical and developmental state by strengthening citizen participation, promoting transparency and accountability. But also fostering social cohesion and ensuring that all South Africans have access to timely, accurate and reliable government information.

“This policy is our marching orders as it provides a coherent framework, particularly for ensuring that all spheres of government communicate in a consistent and coordinated manner while remaining responsive to the diverse needs of our people,” he said.

The Deputy Minister added that the policy recognises communication and “citizen engagement as a cornerstone of our democracy” and advocates for 30% of the GCIS advertising spend to be geared towards community media. 

“Your insights and leadership will be invaluable as we consider the implementation of this policy within the context of the Eastern Cape’s unique characteristics, opportunities and challenges,” Morolong said. – SAnews.gov.za

NeoB

1

Infrastructure investment must rebuild South African industry: President Ramaphosa

Source: Government of South Africa

Infrastructure investment must rebuild South African industry: President Ramaphosa

President Cyril Ramaphosa says South Africa’s massive infrastructure investment programme must be used as a catalyst to rebuild the country’s industrial base, expand manufacturing capacity, develop skills and create jobs.

Addressing the Steel and Engineering Industries Federation of Southern Africa (SEIFSA) Presidential Business Breakfast at the Radisson Hotel OR Tambo on Thursday, the President said South Africa was entering one of the most important periods of infrastructure investment and economic reform since the advent of democracy.

“Our task is to ensure that this investment does more than build infrastructure. It must rebuild South African industry,” President Ramaphosa said.

He said every transmission line, railway, port and water system constructed should contribute to expanding the productive capacity of the economy.

“We must use this infrastructure programme to create factories, develop skills, strengthen supply chains, support new industrialists and create jobs,” he said.

The President highlighted the strategic importance of the metals, engineering and capital equipment industries, noting that SEIFSA’s more than 1 300 member companies manufacture equipment and components essential to mining, electricity, transport, manufacturing and other productive sectors.

He acknowledged, however, that manufacturers continue to operate under difficult conditions, including weak domestic demand, logistics constraints, high electricity costs, infrastructure bottlenecks and growing import competition.

Globally, fragile steel demand, excess steelmaking capacity, geopolitical tensions, supply chain disruptions and energy price volatility are adding to the pressures facing South African companies.

“Investment decisions are delayed. Margins are squeezed. Factories operate below capacity. And ultimately, jobs are placed at risk,” he said.

He warned that South Africa could not accept the continued erosion of its industrial base, describing manufacturing as fundamental to the country’s economic sovereignty.

“It generates skills. It drives innovation. It supports exports. It creates productive employment. And it sustains thousands of businesses throughout the economy,” he said.

Electricity reform

President Ramaphosa said government was working with business and labour to address structural constraints through reforms under Operation Vulindlela, which was established six years ago to accelerate reforms in electricity, logistics, water, telecommunications and the visa system.

He identified electricity reform as particularly important for the metals and engineering industries.

While the end of load shedding was a major achievement, he said electricity also needed to become more affordable, particularly for energy-intensive industries.

“Electricity must also be affordable,” the President said.

He noted that electricity tariffs had increased significantly faster than inflation over the past two decades, placing pressure on smelters and other energy-intensive operations.

He said the next phase of electricity reform would focus not only on security of supply but also on reducing the cost of electricity.

The South African Wholesale Electricity Market is expected to begin operating next year, creating a competitive electricity market where multiple generators will compete to supply electricity.

President Ramaphosa said competition, together with expanded transmission capacity and continued investment in new generation, should create a more efficient electricity system and place downward pressure on electricity costs.

He also announced that the Eskom Restructuring Task Team had been established to oversee the work required to establish a fully independent, state-owned transmission company.

The restructuring, he said, must minimise financial, operational and fiscal risks, strengthen energy security and contribute to reducing electricity costs, while safeguarding Eskom’s financial sustainability and ensuring workers are treated fairly.

Energy transition an industrial opportunity

President Ramaphosa said South Africa’s energy transition should also become an industrial transition.

“South Africa should not simply import the technologies required for the new energy economy. Where we have the capability, or can realistically develop it, we should manufacture them here,” he said.

He identified opportunities for domestic production of towers, transformers, cables, switchgear, structural steel and other electrical equipment, as well as opportunities in green metals, mineral beneficiation, battery manufacturing and green hydrogen.

The most immediate opportunity, he said, lies in expanding the country’s electricity transmission network.

South Africa needs around 14 000 kilometres of new transmission lines over the coming decade, together with major investment in substations and transformation capacity.

The President described this as the largest transmission expansion programme in the country’s history, saying it would create substantial demand for fabricated steel, conductors, cables, transformers, insulators, switchgear, substation equipment, engineering services and logistics.

“This should become one of the great industrial projects of our generation,” he said.

He said the programme should deliberately be used to rebuild South Africa’s existing capabilities in steel fabrication, electrical equipment, distribution transformers and power transformers.

“We should not find ourselves, ten years from now, with a vastly expanded transmission grid but a diminished domestic manufacturing industry,” President Ramaphosa said.

He added that the transmission programme should also serve as a national skills programme, creating opportunities for engineers, electricians, welders, boilermakers, toolmakers, technicians, designers, project managers and construction workers.

Logistics, ports and water

The President said similar opportunities existed through government’s reforms of freight logistics.

Multiple train operating companies are gaining access to the freight rail network, while the legislative and institutional framework for rail reform is being modernised.

Significant private investment will be required to restore locomotives, wagons, signalling systems, rail infrastructure and terminal capacity.

“South Africa once possessed formidable capabilities in railway engineering and railway equipment manufacturing. We must rebuild them,” he said.

He said the country should manufacture more locomotives, wagons, wheels, axles, signalling equipment and other components required by its railway system.

The same approach should apply to port infrastructure, with investment being directed towards cranes, handling equipment and terminal modernisation.

President Ramaphosa also highlighted opportunities arising from water sector reforms, noting that reliable industrial water supplies are essential to steelmaking, mining, manufacturing and virtually every productive sector.

Government has published the National Water Action Plan, while implementation is being coordinated through the National Water Crisis Committee.

The South African National Water Resources Infrastructure Agency is also being operationalised.

Government is investing approximately R24 billion a year through national grants in municipal water and sanitation infrastructure, with further investment being mobilised through public-private partnerships and new financing mechanisms.

This, the President said, would create demand for pipes, pumps, valves, treatment equipment, structural steel, engineering services and construction materials.

R1 trillion infrastructure programme

President Ramaphosa said government’s infrastructure programme amounted to around R1 trillion over the next three years and should be viewed as an industrial strategy rather than simply a construction programme.

“The central question is therefore: How much of the productive capacity required to deliver this infrastructure can we build in South Africa?” he asked.

He stressed that localisation should remain competitive and should not result in inefficiency or excessive prices.

“Localisation must be competitive. It must meet technical standards. It must deliver quality. And it must deliver on time,” he said.

However, where South African companies can produce competitively, public investment should provide the scale and certainty needed to encourage investment.

The President said industry had repeatedly raised concerns that manufacturers could not invest in new factories without visibility of future demand.

He said government therefore needed to improve the coordination and publication of its infrastructure pipeline so companies could anticipate procurement by government, State-owned enterprises and other public institutions over the next five, 10 and even 15 years.

“Predictability creates investment. Investment creates capacity. Capacity creates jobs,” President Cyril Ramaphosa said.

He said the Steel and Metal Fabrication Master Plan remained important and that government would continue working with industry and labour to address structural challenges across the steel value chain.

Steel industry a national priority

President Ramaphosa described steel as a strategic industry and said the future of the metals and engineering sector was inseparable from the future of South Africa’s steel industry.

“Without steel, there is no industrial economy. There are no transmission towers. There are no railway lines. There are no mines. There are no factories. There are no bridges, ports or major water infrastructure,” he said.

He said supporting a competitive and sustainable steel industry was therefore a national priority but stressed that support needed to go hand in hand with competitiveness.

The industry must invest in modern technology, improve productivity, reduce its carbon intensity, produce consistently to international standards and compete successfully in export markets.

Government would also seek to deepen domestic value chains when major equipment is imported through instruments such as the National Industrial Participation Programme and supplier development requirements. 

These should generate local investment, technology transfer, research and development, supplier development, skills and export opportunities.

On trade, President Ramaphosa said South Africa could not be indifferent to unfair trade practices, while also recognising that downstream manufacturers relied on competitively priced inputs.

“Our trade policy must therefore strike a careful balance,” he said.

He said work by the International Trade Administration Commission on steel tariffs and rebates was intended to achieve that balance.

Skills and industrial development

The President stressed that government and industry must place skills development at the centre of infrastructure investment.

South Africa’s major industrial companies had historically trained artisans such as fitters and turners, electricians, boilermakers, welders, millwrights and toolmakers.

“We need to rebuild that training culture,” he said.

He proposed that every major infrastructure contract should consider not only the infrastructure delivered, but also the number of apprentices trained, artisans qualified, young engineers gaining experience and local suppliers developed.

“How many apprentices will be trained? How many artisans will qualify? How many young engineers will gain experience? How many local suppliers will be developed? How much new manufacturing capacity will remain in South Africa when the project is complete?” President Ramaphosa asked.

“That is how infrastructure investment becomes industrial development,” he said.

South Africa as an engineering hub for Africa

President Ramaphosa said the long-term future of South African manufacturing also depended on expanding exports.

He highlighted the opportunities presented by the African Continental Free Trade Area, which is creating a market of more than a billion people.

Across the continent, countries are investing in cities, railways, power stations, transmission networks, mines, factories, water systems and ports.

“They will require precisely the products and capabilities represented in this room. South Africa should aspire to become the engineering workshop of the African continent,” he said.

The country should export transformers, mining machinery, railway equipment, pumps, valves, fabricated steel, electrical equipment and engineering expertise, he said.

Government would continue supporting exporters through trade negotiations, export promotion, trade facilitation and industrial financing.

A new era of industrialisation

President Ramaphosa said South Africa should move beyond discussions about the decline of manufacturing and focus on its renewal.

“The opportunity is before us,” he said.

He said reforms in electricity, logistics and water were beginning to change the conditions under which the economy operates, while the infrastructure programme was creating a substantial pipeline of demand, the energy transition was opening new industries and the African Continental Free Trade Area was creating access to a vast continental market.

“We must bring these opportunities together into a new programme of industrialisation,” he said.

Government must provide certainty, remove constraints, coordinate infrastructure investment and use public procurement strategically and responsibly, while industry must invest, innovate, compete, transform and train.

Labour, he said, must remain a partner in building productive workplaces, developing skills and ensuring workers share in the benefits of industrial growth.

“If we do these things together, South Africa can once again become a country that makes things. A country that manufactures the equipment for its own development. A country that transforms its minerals into higher-value products.

“A country that exports machinery and engineering expertise to the world. And, most importantly, a country that creates millions of productive jobs for its people,” President Ramaphosa said.

He said South Africa already had the minerals, infrastructure base, engineering capability, industrial experience and entrepreneurs needed to realise this ambition, as well as a generation of young South Africans eager for skills and opportunity.

“What is required now is that we bring these strengths together. Let us build the transmission lines. Let us rebuild the railways. Let us modernise our ports. Let us secure our water infrastructure. But as we build them, let us also rebuild South African industry,” he said.

The President emphasised that the infrastructure programme should become the foundation of a new era of industrialisation, with South Africa producing and exporting more while creating the jobs, industries and capabilities needed to sustain the economy for generations. 

“I am confident that, working together, we can build an industrial economy worthy of South Africa’s immense potential,” he said. – SAnews.gov.za

DikelediM

0

Creecy calls for opportunities in aviation for women

Source: Government of South Africa

Creecy calls for opportunities in aviation for women

While South Africa has made gains in advancing women in the aviation sector, Minister of Transport Barbara Creecy has called for the under-representation of women in highly specialised professions or technical fields within the sector, to be addressed. 

“The latest licensing statistics compiled by the South African Civil Aviation Authority (SACAA) show that South Africa now has more than 33 500 licensed aviation professionals, almost 6 800 of whom are women,” Creecy said at the 2026 National Aviation Gender Summit on Thursday, in Pretoria.

Two years ago, South Africa had just over 25 800 licensed aviation professionals, with approximately 5 000 women licence holders. 

“Women now account for just over 20% of all licensed aviation personnel in South Africa and that is progress we should acknowledge.

“However, these figures also remind us of where our greatest challenges remain, as they are still too low. We continue to see large under-representation of women in highly specialised professions or technical fields within the aviation sector. This needs to change,” Creecy stressed.

“As African aviation grows, so too will the demand for pilots, engineers, air traffic controllers, airport professionals, safety and security specialists, regulators and many other skilled professionals. We must therefore ensure that the employment and economic opportunities created by that growth are made accessible to women,” she said.

Creecy emphasised that South Africa has to be deliberate about ensuring that women are part of the skills pipelines, training opportunities, recruitment strategies and leadership pathways that accompany it.

According to the Minister, the most encouraging statistic is that women now account for more than a quarter of South Africa’s student pilot population.

“This means more young women are choosing aviation than ever before. Our challenge is therefore evolving. It is no longer simply about encouraging women to enter the field; it is about ensuring that they complete their training, secure meaningful employment, progress into leadership positions and remain within the profession long enough to become captains, chief engineers, regulators, executives and mentors for the generations that follow,” she said.

Creecy highlighted that the Department of Transport awarded 317 of 460 contracts in the 2025/2026 financial year to women-owned enterprises. 

The value of these awards amounted to R312.3 million, representing 96.5% of the total awarded value.

In the 2025-2026 financial year, SACAA spent over R 54 million on goods and services from women-owned Small, Medium, and Micro Enterprises (SMMEs).

“Airports Company South Africa has also used focused procurement to empower women-owned SMMEs. In 2025-2026 alone, 118 black women-owned businesses were contracted, making up 21% of the  R695 billion Broad-Based Black Economic Empowerment (B-BBEE) spend.

“These investments are a key component of achieving the Seventh Administration’s targets for the aviation industry – moving 42 million passengers and 1.2 million tons of air freight moving through the Airports Company South Africa network of airports by 2029,” the Minister said.

Creecy added that the aviation sector itself tells a story of both meaningful progress and significant opportunity.

Drive towards greater gender equality in aviation 

To balance the scale, South Africa is pursuing gender equality and transformation by embedding education, workforce planning, leadership development and long-term skills strategies. 

Creecy said SACAA and the Air Traffic Navigation Services (ATNS) have programmes to support female learners to enter the aviation field through professions such as pilots, aircraft maintenance technicians, aeronautical engineers, airport management and development, as well as flight procedure designers, air traffic controllers and related fields. 

“During the 2024/25 financial year, the Airports Company of South Africa Aviation Academy (ACSA) trained more than 6 400 aviation professionals, including over 2 500 women. 

“In the same financial year, 44% of bursaries went to young women to study programmes such as Aeronautical Engineering, Aircraft Maintenance Engineering and Pilot Training, as well as learnerships in Business Administration and Software Development. Over 70% of the current SACAA internship programme intake are women,” the Minister said.

To secure the future air traffic services pipeline, ATNS has several bursaries and trainee programmes. 

“In the first quarter of the current financial year, 25 youth were recruited for air traffic services training, with 13, or 52% of them, being women. Currently, five of the six candidates undergoing technician training are women. At a broader level, 51% of the Air Traffic Service staff component at ATNS are women.

“As our flag carrier, South African Airways (SAA) remains committed to advancing gender transformation across the aviation sector and continues to make meaningful progress in creating opportunities for women in traditionally male-dominated professions,” Creecy said.

  As of 7 August 2026, women comprise 66.7% of SAA’s cabin crew workforce, with 368 female cabin crew members compared to 184 men. 

Within the flight deck community, 54 of SAA’s 289 pilots are women, representing 18.7% of the pilot corps, which is significantly higher than global aviation averages. 

“Importantly, when considered together, SAA’s cabin crew and pilot complement reflects near gender parity, with 422 women and 419 men, meaning women constitute 50.2% of these critical operational roles. These figures demonstrate SAA’s ongoing commitment to promoting the participation and advancement of women across aviation professions,” the Minister said. –SAnews.gov.za

 

 

 

nosihle

2

Transnet seeks private partners for rail network

Source: Government of South Africa

Transnet seeks private partners for rail network

The state-owned freight transport and logistics company, Transnet,  is seeking private sector partners to refurbish, finance, operate and maintain South Africa’s B-Network railway lines as part of efforts to open the country’s rail network to greater private participation.

Through the Transnet Rail Infrastructure Manager (TRIM), government has published a Request for Information (RFI), inviting interested parties to submit proposals for partnership opportunities. 

The process aims to assess public and private sector interest in the refurbishment, financing, operation, maintenance and potential concessioning of low-density branch lines.

“The introduction of Private Sector Participation (PSP) opportunities on the B-Network is a critical step in reforming South Africa’s freight logistics system. By inviting market input, TRIM aims to design procurement programmes that are responsive to industry demand and aligned with national policy objectives under the White Paper on National Rail Policy and the Economic Regulation of Transport Act,” TRIM Chief Executive Moshe Motlohi said on Wednesday.

These lines, covering approximately 9 098 km, are characterised by relatively low volumes, small-scale operations and distinct infrastructure profiles.

“Most B-Network branch lines connect to the core rail network, facilitating the movement of cargo for export, consumption or destination packaging. Some lines have attracted interest for passenger and tourism services.

“Information gathered through the RFI will assist TRIM in refining the problem statement and guide the design of one or more procurement programmes on the national rail network to improve performance, increase throughput and harness private sector capital, skills and expertise,” TRIM said.

TRIM is responsible for the management, maintenance and development of South Africa’s rail infrastructure network.

The RFI builds on recent progress in opening South Africa’s rail network to third-party operators.

TRIM recently announced the successful conclusion of Rail Access Agreements (RAAs) with 11 new Train Operating Companies (TOCs), which were allocated slots for selected train paths on the core network following the publication of Network Statement Version 3 in 2024.

“This milestone marked the beginning of open access in South Africa’s rail sector. The latest RFI builds on this momentum by extending opportunities to the BNetwork, ensuring that feeder and branch lines also benefit from innovation and investment opportunities,” the TRIM said.

RFI documents can be accessed from the National Treasury’s e-Tender Publication Portal (www.etenders.gov.za) and the Transnet website (https://transnetetenders.azurewebsites.net) under the old eTender Portal. Responses to the RFI must be submitted electronically by no later than 30 September 2026 at 10am. – SAnews.gov.za

 

nosihle

0

Address by President Cyril Ramaphosa at the Steel and Engineering Industries Federation of Southern Africa Presidential Business Breakfast, Radisson Hotel Or Tambo, Ekurhuleni

Source: President of South Africa –

Chairperson of the SEIFSA Board, Mr Elias Monage,
Chief Executive Officer, Mr Tafadzwa Chibanguza,
Members of the SEIFSA Board and Council,
Leaders of organised business and labour,
Representatives of the metals, engineering and capital equipment industries,
Distinguished guests,
Ladies and gentlemen,
Good morning.

It is a great pleasure to join you for this SEIFSA Presidential Business Breakfast.

For more than eight decades, SEIFSA and the industries it represents have been at the heart of South Africa’s industrial development.

The companies represented here manufacture the machines that drive our mines, the structures that carry our electricity, the equipment that moves goods through our ports and railways, and the components that keep our factories operating.

You produce the transformers, cables, pumps, valves, boilers, fabricated steel, mining equipment and engineering systems without which a modern economy simply cannot function.

With more than 1,300 member companies, SEIFSA represents an industrial capability of immense strategic importance to our country.

That capability matters particularly now.
Because South Africa is entering one of the most important periods of infrastructure investment and economic reform since the advent of democracy.

Our task is to ensure that this investment does more than build infrastructure.
It must rebuild South African industry.

Every transmission line we build, every railway we rehabilitate, every port we expand and every water system we construct should contribute to expanding the productive capacity of our economy.

We must use this infrastructure programme to create factories, develop skills, strengthen supply chains, support new industrialists and create jobs.

This is the opportunity before us.

But we must also acknowledge the difficult conditions under which South African manufacturers are operating.

The metals and engineering sector has demonstrated extraordinary resilience.

Yet companies continue to face weak domestic demand, logistics constraints, high electricity costs, infrastructure bottlenecks and growing import competition.

Globally, steel demand remains fragile.
Excess global steelmaking capacity continues to grow, placing enormous pressure on producers around the world.

Geopolitical tensions, disruptions to supply chains and volatility in energy prices are adding further uncertainty.

South African companies feel these pressures directly.

Investment decisions are delayed.

Margins are squeezed.
Factories operate below capacity.And ultimately, jobs are placed at risk.

We cannot accept the continued erosion of South Africa’s industrial base.
Manufacturing is not simply another sector of the economy.

It is fundamental to our economic sovereignty.
It generates skills.
It drives innovation.
It supports exports.
It creates productive employment.
And it sustains thousands of businesses throughout the economy.

That is why government is working with business and labour to address the structural constraints that have held our economy back.

Six years ago, we established Operation Vulindlela to accelerate reforms in electricity, logistics, water, telecommunications and the visa system.

These reforms are now fundamentally changing the architecture of the South African economy.

For the metals and engineering industries, few reforms are more important than those underway in electricity.

Working together, we have succeeded in bringing load shedding to an end.

This is a major achievement.
But reliability alone is not enough.

Electricity must also be affordable.

For energy-intensive industries, electricity prices have become an existential challenge.

Over the past two decades, electricity tariffs have increased far faster than inflation.

A number of smelters and other energy-intensive operations have either closed, reduced production or faced the prospect of closure.

These are not industries that can simply be switched off today and restarted tomorrow.

Once a smelter closes, we lose productive capacity.
We lose skills.
We lose export earnings.
We weaken entire industrial value chains.
And we lose jobs that are extremely difficult to recreate.

That is why the next phase of electricity reform must focus not only on security of supply, but also on reducing the cost of electricity.

We are moving towards a competitive electricity market in which multiple generators will compete to supply electricity.

The South African Wholesale Electricity Market is expected to begin operating next year.

Competition between generators, combined with expanded transmission capacity and continued investment in new generation, must ultimately produce a more efficient electricity system and put downward pressure on the cost of power.

The reforms implemented through the Energy Action Plan have already unlocked unprecedented investment in new generation capacity.

But a competitive electricity market also requires a transmission system that is independent, efficient and capable of providing fair access to all market participants.

That is why we have established the Eskom Restructuring Task Team to oversee the detailed work required to establish a fully independent, state-owned transmission company.
This process must achieve three objectives.

It must minimise financial, operational and fiscal risk.
It must strengthen energy security.
And it must contribute to reducing the cost of electricity.

We will undertake this restructuring carefully and responsibly.
We will safeguard the financial sustainability of Eskom.
We will protect energy security.
And we will ensure that workers are treated fairly.

Countries across the world have restructured their electricity industries to introduce competition while maintaining public ownership of critical infrastructure.
South Africa can do the same.

But there is another dimension to the energy transition that is particularly relevant to this gathering.

The energy transition must become an industrial transition.

South Africa should not simply import the technologies required for the new energy economy.
Where we have the capability, or can realistically develop it, we should manufacture them here.

Our renewable energy programme can support domestic production of towers, transformers, cables, switchgear, structural steel and other electrical equipment.

Our mineral endowment gives us an opportunity to move further into green metals and mineral beneficiation.

Our engineering capabilities position us to participate in emerging industries such as battery manufacturing and green hydrogen.

And nowhere is the industrial opportunity more immediate than in the expansion of our electricity transmission network.

Over the coming decade, South Africa needs around 14,000 kilometres of new transmission lines, together with major investment in substations and transformation capacity.

This is the largest transmission expansion programme in our country’s history.

Think for a moment about what this means. Thousands upon thousands of transmission towers.
Hundreds of thousands of tonnes of fabricated steel.
Thousands of kilometres of conductors and cables.
Transformers.
Insulators.
Switchgear.
Substation equipment.
Foundations.
Control systems.
Engineering services.
Transport and logistics.
And behind every one of these products are factories, workers, engineers, artisans and suppliers.

This should become one of the great industrial projects of our generation.
South Africa already has significant capability in steel fabrication, electrical equipment, distribution transformers and power transformers.

We must use the transmission programme deliberately to rebuild and expand this capability.
We should not find ourselves, ten years from now, with a vastly expanded transmission grid but a diminished domestic manufacturing industry.

That would represent a missed historic opportunity.

The transmission programme must therefore become both an industrialisation programme and a national skills programme.
It will require engineers.
It will require electricians.
It will require welders and boilermakers.
It will require toolmakers, technicians, designers, project managers and construction workers.

It must create apprenticeships and training opportunities for thousands of young South Africans.
And it must provide opportunities for established manufacturers alongside black industrialists, women- and youth-owned enterprises and small and medium businesses.

The same principle must apply to our logistics reforms.
Through Operation Vulindlela, we are undertaking the most far-reaching reform of South Africa’s freight logistics system in decades.

Multiple train operating companies are gaining access to the freight rail network.

The legislative and institutional framework for rail reform is being modernised.
Significant private investment will be required to restore locomotives, wagons, signalling systems, rail infrastructure and terminal capacity. Again, this represents an industrial opportunity.

South Africa once possessed formidable capabilities in railway engineering and railway equipment manufacturing.
We must rebuild them.
We should be manufacturing more of the locomotives, wagons, wheels, axles, signalling equipment and components required by our railway system.

The same applies to our ports.
Significant investment is being directed towards port infrastructure, cranes, handling equipment and terminal modernisation as we advance reforms in the port system.And the same applies to water.

Integrated steelmaking, mining, manufacturing and virtually every productive sector depend on reliable supplies of industrial water.

We have therefore embarked on fundamental reform of the water sector.
We recently published the National Water Action Plan, whose implementation will be coordinated through the National Water Crisis Committee.

We are operationalising the South African National Water Resources Infrastructure Agency.
Through national grants alone, government is investing approximately R24 billion a year in municipal water and sanitation infrastructure, with hundreds of projects underway across the country.
Further investment is being mobilised through public-private partnerships and new financing mechanisms.

Once again, this means demand for pipes, pumps, valves, treatment equipment, structural steel, engineering services and construction materials.
When we consider transmission, rail, ports, water, renewable energy, mining, social infrastructure and defence together, we begin to appreciate the scale of the opportunity.

Government’s infrastructure programme amounts to around R1 trillion over the next three years.
We should view this not simply as a construction programme.
We should view it as an industrial strategy.

The central question is therefore:
How much of the productive capacity required to deliver this infrastructure can we build in South Africa?
This does not mean that every nut, bolt or component must necessarily be manufactured locally.
Nor should localisation become a licence for inefficiency or excessive prices.
Localisation must be competitive.
It must meet technical standards.
It must deliver quality.
And it must deliver on time.
But where South African firms can produce competitively, public investment should help create the scale and certainty that enables them to invest.
Industry repeatedly tells government that manufacturers cannot invest in new factories without visibility of future demand.

That is a reasonable concern.
We therefore need to improve the coordination and publication of the infrastructure pipeline so that companies can see what government, state-owned enterprises and other public institutions intend to procure over the next five, ten and even fifteen years.

A manufacturer deciding whether to invest hundreds of millions of rand in a transformer factory, cable plant or fabrication facility needs confidence that there will be an order book.

Predictability creates investment.
Investment creates capacity.
Capacity creates jobs.
This is why the Steel and Metal Fabrication Master Plan remains important.
Government will continue working with industry and labour to address the structural challenges facing the steel value chain.

The future of the metals and engineering sector is inseparable from the future of our steel industry.
Steel is a strategic industry.
Without steel, there is no industrial economy.
There are no transmission towers.
There are no railway lines.
There are no mines.
There are no factories.
There are no bridges, ports or major water infrastructure.
Supporting a competitive and sustainable steel industry is therefore a national priority.
But support must go together with competitiveness.
Our objective must be an industry that invests in modern technology, improves productivity, reduces its carbon intensity, produces consistently to international standards and competes successfully in export markets.
We must also deepen the domestic value chain.
Where major equipment has to be imported, government will increasingly use instruments such as the National Industrial Participation Programme and supplier development requirements to ensure that these purchases generate benefits for the South African economy.
These benefits should include local investment, technology transfer, research and development, supplier development, skills and export opportunities.
Around the world, governments are taking steps to protect strategic industrial capabilities and secure critical supply chains.

South Africa cannot be indifferent to unfair trade practices.
At the same time, we must recognise that downstream manufacturers also depend on competitively priced inputs.
Our trade policy must therefore strike a careful balance.

We must protect efficient domestic producers against unfair competition while ensuring that downstream manufacturers are not penalised where domestic supply is unavailable, inadequate or uncompetitive.

The work being undertaken by the International Trade Administration Commission on steel tariffs and rebates is intended to achieve precisely this balance.
Trade measures alone, however, cannot secure the future of South African manufacturing.
Ultimately, our manufacturers must compete.
They must compete on price.
They must compete on quality.
They must compete on technology.
And they must compete on delivery.
Government’s responsibility is to create the conditions in which they are able to do so.
That means reliable and affordable electricity.
Efficient railways and ports.
Reliable water.
Modern infrastructure.
Access to finance.
Appropriate trade measures.
Predictable regulation.
And a skilled workforce.
Industry has responsibilities as well.
We need companies to invest.
We need companies to modernise their factories.
We need companies to improve productivity.
We need companies to develop local suppliers.
We need companies to embrace transformation.
And above all, we need industry to invest in young South Africans.
For generations, South Africa’s great industrial companies trained artisans.

They produced fitters and turners, electricians, boilermakers, welders, millwrights and toolmakers.
Many of those skills subsequently spread throughout our economy.

We need to rebuild that training culture.
Every major infrastructure contract should therefore ask not only how many kilometres of railway or transmission line will be built.

It should ask:
How many apprentices will be trained?
How many artisans will qualify?
How many young engineers will gain experience?
How many local suppliers will be developed?
How much new manufacturing capacity will remain in South Africa when the project is complete?

That is how infrastructure investment becomes industrial development.
And our ambitions cannot end at South Africa’s borders.

The long-term future of South African manufacturing depends on exports.
The African Continental Free Trade Area is creating a market of more than a billion people.

Across our continent, countries are building cities, railways, power stations, transmission networks, mines, factories, water systems and ports.

They will require precisely the products and capabilities represented in this room.
South Africa should aspire to become the engineering workshop of the African continent.

We should be exporting transformers to the continent.
We should be exporting mining machinery.
We should be exporting railway equipment.
We should be exporting pumps, valves, fabricated steel and electrical equipment.
And we should be exporting South African engineering expertise.
Government will continue supporting exporters through trade negotiations, export promotion, trade facilitation and industrial financing.

Ladies and gentlemen,
For many years we have spoken about the decline of South African manufacturing.
We must now speak about its renewal.
The opportunity is before us.
The reforms we have undertaken in electricity, logistics and water are beginning to change the conditions under which our economy operates.
Our infrastructure programme is creating a substantial pipeline of demand.

The energy transition is creating entirely new industries.
And the African Continental Free Trade Area is opening a vast market on our doorstep.

We must bring these opportunities together into a new programme of industrialisation.

Government must provide certainty, remove constraints, coordinate infrastructure investment and use public procurement strategically and responsibly.
Industry must invest, innovate, compete, transform and train.

Labour must be our partner in building productive workplaces, developing skills and ensuring that workers share in the benefits of industrial growth.
If we do these things together, South Africa can once again become a country that makes things.

A country that manufactures the equipment for its own development.
A country that transforms its minerals into higher-value products.

A country that exports machinery and engineering expertise to the world.
And, most importantly, a country that creates millions of productive jobs for its people.

We have the minerals.
We have the infrastructure base.
We have the engineering capability.
We have the industrial experience.
We have the entrepreneurs.
And we have a generation of young South Africans eager for skills and opportunity.
What is required now is that we bring these strengths together.
Let us build the transmission lines.
Let us rebuild the railways.
Let us modernise our ports.
Let us secure our water infrastructure.
But as we build them, let us also rebuild South African industry.

Let us make this infrastructure programme the foundation of a new era of industrialisation.
Let us produce more in South Africa.
Let us export more from South Africa.
And let us create the jobs, industries and capabilities that will sustain our economy for generations to come.

I am confident that, working together, we can build an industrial economy worthy of South Africa’s immense potential.

I thank you.

Transformation and economic inclusion are central to SA’s economy 

Source: Government of South Africa

Transformation and economic inclusion are central to SA’s economy 

Trade, Industry and Competition (dtic) Minister Parks Tau has reiterated that transformation and economic inclusion are moral and economic imperatives central to South Africa’s democratic political order. 

Tau was delivering a keynote address at the Black Business Council’s Annual Summit in Johannesburg, on Wednesday.

His speech focused on the Transformation Fund and other mechanisms aimed at addressing access to funding for black owned, women-owned and youth owned business.

“From the outset, let me state that transformation and economic inclusion are moral and economic imperatives, central to South Africa’s democratic political order. The return on investments made by this government is clear. Transformation is not a promise on paper. Instead, it is a measurable, growing reality in our economy,” Tau said.

He told delegates at the summit that the South African economy cannot grow sustainably if the majority of its people remain excluded, adding that Broad-Based Black Economic Empowerment (B-BBEE) seeks to unlock the full potential of the economy.

Tau noted commendable successes that the country has achieved through the implementation of the B-BBEE policy.

“B BBEE has placed Black South Africans in corporate boardrooms. It has expanded the Black middle class, fostered growth of many micro, small, and medium enterprises (MSME), and injected sizeable economic inclusion through worker ownership schemes,” he said.

He said there was an overall positive trend towards achieving ownership targets, with Black ownership reaching 45.8% in 2023, well above the 25%+1 vote target, and Black female ownership surpassing 10% target, standing at 13.6% in 2023, illustrating the progress and positive impact of the B-BBEE policy implementation.

He noted a significant increasing trend in average scores for enterprise and supplier development, ownership, socio-economic development, skills development and management control elements of B-BBEE.

“As the dtic family, it gives me great pleasure to inform you that almost all of our Development Finance Institutions (DFIs) are led by women, both as chairperson and/or CEOs. Allow me to zoom into the IDC, for example. 

“The IDC facilitated R26.6 billion in transformation funding. Within this broader transformation portfolio, funding for women entrepreneurs and women-empowered businesses amounted to approximately R5.6 billion,” Tau said.

He said South Africa is entering an era of boldness and getting things done, describing the South African transformation journey as a story of boldness and willingness to change the status quo.

“The public and private partnership is important, especially given our present dire socio-economic context. Funding mechanisms are crucial to the success of transformation. 

“It is for this reason we have introduced the Transformation Fund working with our social partners. It is only through partnerships we are going to win and ensure that economic transformation becomes a reality,” he said.

Tau underscored the importance of leveraging existing resources, and added that for the Transformation Fund, the dtic has partnered with the Unemployment Insurance Fund (R500 million), Development Bank of Southern Africa (R250 million) Vodacom (R400 million) and IBM (R220 million).

“South Africa must defend its position in relation to our domestic policy sovereignty. We require society, and indeed black business to mobilise in defence of this policy against external pressures. The Transformation Fund is South Africa’s Transformation Jet Engine. This is a jet engine that draws its power from every component working together. Capital provides the fuel, but it must connect to capability. Capability must connect to markets. 

“And growing enterprises must translate into jobs, localisation, industrialisation and exports. This is how transformation policy becomes economic power,” Tau said. – SAnews.gov.za

 

Edwin

0

Additional resources deployed for mine rescue mission in Rustenburg

Source: Government of South Africa

Additional resources deployed for mine rescue mission in Rustenburg

The Acting National Commissioner of the South African Police Service (SAPS), Lt General Puleng Dimpane, has deployed additional specialised capacity to support and enhance ongoing rescue, recovery and investigative operations at the disused mine in Nkaneng, Rustenburg.

This follows the recovery of 14 bodies on Tuesday, who, according to police, died when the walls of an excavated area they were digging in, caved in. Scores others have been injured, while rescue operations continue.

READ | Mineral Resources Department assessing illegal miners’ deaths

“The deployment forms part of the SAPS National Office’s intervention to reinforce the capacity of the North West province and ensure that the complex operation is supported by specialised expertise, resources and personnel required to effectively manage the investigation and recovery efforts,” the police said in a statement.

Dimpane has commended the Provincial Commissioner, Lt General Adams and specialised teams for the progress made thus far, particularly following the recovery of the 14 bodies and the location of eight survivors at the scene. 

“I commend the teams on the ground for the progress achieved under extremely difficult and hazardous conditions. 

“The recovery of the 14 bodies is a significant development in this operation, but it also underscores the seriousness and complexity of the circumstances we are dealing with. 

“The deployment of additional specialised capacity is intended to strengthen the North West province and ensure that every aspect of this operation is approached with the necessary professionalism, expertise and sensitivity.

“Arrangements are underway for the formal identification of the deceased and the conducting of post-mortem examinations. 

“The SAPS Victim Identification Unit, detectives and relevant forensic specialists are coordinating these processes to establish the identities of the deceased and assist in determining the circumstances surrounding their deaths,” said Dimpane. 

Dimpane said the Department of Mineral and Petroleum Resources is conducting an assessment of the mining operation and the compliance status of the site. SAPS is working closely with the department and other relevant stakeholders to assess the mine environment and gather information that may assist in establishing the full circumstances surrounding the incident.

Dimpane has further urged all members of the investigation team to remain focused on evidence-led investigations in resolving and concluding this complex investigation.

“Our responsibility is not only to establish what happened, but to do so through a thorough, lawful and evidence-driven process. We owe this to the deceased, their families and the broader community. 

“At the same time, we must ensure that the integrity of the investigation is protected. We, therefore, appeal to the public and social media to refrain from speculation and allow the investigators to follow the evidence. Where criminality is established, those responsible will be brought to justice.”

SAPS extends its appreciation to all personnel and stakeholders involved in this difficult operation and recognises the challenging conditions under which they continue to work. – SAnews.gov.za

Edwin

4

ETA system a ‘quantum leap forward’ for immigration system

Source: Government of South Africa

ETA system a ‘quantum leap forward’ for immigration system

Home Affairs Minister, Dr Leon Schreiber, has described the new Electronic Travel Authorisation (ETA) system as revolutionary for South Africa’s immigration management.

The Minister was speaking at the official launch of the ETA system led by President Cyril Ramaphosa at the OR Tambo International Airport on Wednesday.

The system combines advanced biometric verification with automated risk analysis, delivering both enhanced security and faster processing for legitimate travellers.

“Today’s launch of the ETA represents a quantum leap forward for our country’s immigration system, both by unlocking economic growth through tourism, investment and legitimate travel, and by landing a decisive blow against visa fraud and illegal immigration,” Schreiber declared.

The system uses automated risk analysis to identify indicators of fraud at a “speed and scale no human could achieve”

“If the application is approved, the traveller will receive their ETA within 24 hours, which they can then store directly in the digital wallet on their smart phone.

“Once an approved traveller arrives at the immigration counter, they are again required to look into a camera, where biometric verification enables us to confirm that the person standing at our border is the same person who received authorisation to travel to our country.

“In other words: the face of the traveller becomes the key that determines whether they may enter, rather than physical documents that can be manipulated,” the Minister explained.

Some 216 204 applications have already been processed since the pilot began during South Africa’s G20 Presidency for travellers from China, India, Indonesia and Mexico. 

Crucially, the system identified 6126 fraudulent applications that were subsequently rejected, including cases involving fraudulent passports and manipulated documents.

“That is the future of immigration in South Africa: a system that is modern and uncompromising when it comes to security, but welcoming and efficient when it comes to the travellers and investors we must attract to generate growth and jobs.

“That is why the final component we built before today’s launch is the capability for legitimate travellers who enter South Africa for up to 90 days to apply through the ETA to extend their stay for up to a further 90 days, as stipulated by the Immigration Act.

“This feature alone is likely to significantly boost tourism revenues, as it enables lawful travellers to extend their stay without the hassle and bureaucracy of the past,” Schreiber stated.

Over the coming weeks, the department will inform the embassies of countries as they are systematically added to the ETA.

“The system will initially be available for travellers who arrive at OR Tambo International Airport, Cape Town International Airport, King Shaka International Airport, and Lanseria International Airport.

“With our airports fully equipped, we will turn our attention to land and seaports over the coming months to roll out facial recognition and EMCS 2.0 at all ports of entry,” Schreiber said.

Work also continues to “expand the platform also to process more complex visa categories, including study visas, spousal visas, and work visas”.

“By the time this work is complete, South Africa will have one of the most sophisticated, efficient and secure digital visa and entry/exit systems anywhere in the world.

“[The] ETA is the embodiment of our commitment to the vision of turning South Africa into a world leader in smart and secure migration management and digital government,” Schreiber concluded.

Speaking at Wednesday’s launch, President Cyril Ramaphosa described the reform as far more than the introduction of a new digital platform, saying it represents the aspirations of the South Africa of the future.

READ | South Africa ushers in ETA to make international travel easier, more secure

“This is far more than the introduction of a new digital platform. It is a statement about the kind of country we are building,” the President said. – SAnews.gov.za

 

NeoB

5

Employment and Labour calls for urgent action as unemployment crisis deepens

Source: Government of South Africa

Employment and Labour calls for urgent action as unemployment crisis deepens

The Department of Employment and Labour has called for urgent and coordinated action to address South Africa’s worsening employment crisis, following the release of the Quarterly Labour Force Survey (QLFS) for the second quarter of 2026. 

The survey, released by Statistics South Africa on Tuesday, paints a challenging picture of the labour market, with the department warning that structural constraints, sluggish investment and low labour absorption capacity continue to limit employment opportunities.

In a statement on Wednesday, the department said the findings were a “sobering reality check”, highlighting the growing gap between the number of people entering the labour market and the availability of jobs. 

“The cruel arithmetic is unforgiving: far too many new entrants are flooding the labour market, yet far too few opportunities exist to absorb them, steadily deepening the nation’s employment deficit,” the department said.

Turbulent global economic conditions and heightened uncertainty were placing further pressure on the domestic economy and employment outlook, the department said.

Of particular concern is the continued exclusion of young people from the labour market, which the department described as a national emergency requiring urgent and coordinated intervention.

Against this backdrop, the department said job creation remains government’s “apex priority”.

“Meaningful, sustainable outcomes demand a synchronised assault on unemployment, a whole-of-government and whole-of-society coalition that bridges economic, industrial, skills development and social policy institutions,” the department said.

The department emphasised that addressing unemployment requires stronger cooperation across all three spheres of government, as well as meaningful participation from the private sector.

Provincial and local governments, in particular, have been urged to play a greater role in driving local economic development, unlocking municipal-level investment and ensuring employment initiatives respond to regional needs.

The department said it would strengthen coordination between government and business, as well as among national, provincial and local government, to ensure employment creation becomes a core priority across all spheres.

It will also conduct a detailed assessment of the sectors hardest hit by employment losses to identify where interventions are most urgently required.

The department further called for the acceleration and consolidation of existing labour market and economic reforms, including Operation Vulindlela, the Presidential Employment Stimulus and Active Labour Market Policies.

“Flagship intervention, Operation Vulindlela, the Presidential Employment Stimulus and our suite of Active Labour Market Policies (ALMPs) must be supercharged, scaled up decisively and sharpened into effective drivers of inclusive growth. 

“These are not mere acronyms; they are our frontline weapons against unemployment. However, they can only succeed if deployed with coherence, speed and relentless accountability and if every tier of government plays its part,” the department said. 

The department said employment initiatives must be implemented through a coordinated approach involving national departments, provincial administrations and municipalities to deliver sustainable results.

“We must move with the urgency this crisis demands for the sake of every young person waiting for a foothold in the economy and for the future of our nation,” the department said. – SAnews.gov.za

DikelediM

0