SONA2025: Ramaphosa Announces R940 Billion Transport Infrastructure Boost

R940 Billion to Boost Roads, Rail, and Ports – Ramaphosa

South Africa is a country that requires well-developed transport and logistics infrastructure to enhance economic growth, job creation, and poverty reduction.

Speaking during the 2025 State of the Nation Address in Cape Town, President Cyril Ramaphosa emphasized that the Government of National Unity (GNU) is committed to improving South Africa's ports, rail, and roads. He announced that the government would invest R940 billion into infrastructure over the next three years. "To achieve higher levels of economic growth, government is undertaking huge investments in new infrastructure involving local and international financial institutions and investors to unlock R100 billion in infrastructure financing," he stressed.

Strategic Infrastructure Investments

This investment will focus on several key areas:

• Roads: The South African National Roads Agency Limited (SANRAL) has been awarding projects to maintain and expand the nation’s extensive road network. This is part of a larger effort to improve nearly 25,000 km of roads to support the country's growing logistics needs.

• Railways: The government is also advancing plans to modernize the rail system, with high-speed rail services expected to be introduced. A national rail master plan is set to be completed by the end of 2025. In addition, the Transnet Network Statement will enable private rail operators to access the freight system, allowing for more efficient transport of minerals, vehicles, and agricultural products to international markets.

• Ports: Enhancing port efficiency is another critical component of the infrastructure drive. The government is working to improve capacity and operations at key ports to streamline trade and bolster economic activity.

Economic Growth and Reforms

President Ramaphosa emphasized that these investments are aimed at boosting economic growth, targeting a growth rate of over 3%. He highlighted that infrastructure development is a crucial part of the broader strategy to stimulate economic recovery, attract both local and international investors, and ensure that South Africa's transport and logistics systems meet global standards.

Private Sector Participation

The government's approach includes encouraging private sector participation, particularly in the rail sector, where private operators will be able to contribute to the freight system. This initiative is seen as an essential part of improving the logistics network, helping South Africa remain competitive in global markets.

Global Context

In his address, President Ramaphosa also commented on global economic challenges, asserting that South Africa "will not be bullied" by international pressure. He reaffirmed the nation’s commitment to defending its interests and advancing the goals of the African continent and the Global South.

These developments underscore South Africa's commitment to modernizing its infrastructure, fostering economic growth, and ensuring its place as a competitive player in the global economy.