South Africa’s breaking point that can’t be ignored – The Collapsing Transportation Infrastructure…
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[The Black Government has ignored maintenance and upkeep of most of our infrastructure for decades and it has also made horrifically bad choices. This is coming back to burn South Africa. Jan]
South Africa’s ‘breaking point’ that can’t be ignored
Investors say South Africa’s road and transport infrastructure needs to be dealt with right now – or else the country’s economy will continue to suffer and miss out on growth opportunities.
According to Vuyo Ntoi, MD of African Infrastructure Investment Managers (AIIM), South Africa’s ageing transport infrastructure is at a breaking point and threatens to drag the economy further into decline.
He said that the government urgently needs to fast-track its plans for public-private partnerships to remedy this or risk continuing to miss out on growth, as it has for almost two decades.
“From collapsing rail networks to deteriorating roads, the country’s transportation system is becoming a major obstacle to economic progress,” he said.
“As a direct result, job creation, productivity, and access to essential services are faltering, with far-reaching consequences for businesses, workers, and families across the country.”
“For an economy that relies heavily on mining, manufacturing, and agriculture, the failure to maintain a reliable transport system has left exporters struggling to get goods to market.”
Rail inefficiencies and road congestion add billions in unnecessary costs, eroding South Africa’s global competitiveness at a time when every cent counts.
The mining sector, in particular, has suffered and has not been fully able capitalise on recent surges in commodity prices due to the logistical bottlenecks created by ageing and mismanaged infrastructure.
The impact of infrastructure collapse is not limited to industry; it’s being felt on the ground by everyday South Africans.
The failing passenger rail system, once a critical mode of transport for millions of workers, has led to increased reliance on road transport. This shift has caused severe congestion on major routes, increased family transport costs, and extended commute times.
A Missed Opportunity for Growth
South Africa’s inability to modernise its transport infrastructure also means it has missed critical growth opportunities, most notably the early 2000s commodity boom and the more recent post-pandemic recovery.
While other resource-rich countries, such as Australia and Brazil, used the commodity windfall to supercharge economic development through efficient transport networks, South Africa’s neglected infrastructure undermined its ability to do the same.
Ntoi said the country is now struggling to make up lost ground, with logistics disruptions stalling efforts to recover from the economic shocks of COVID-19.
“It is widely accepted that corruption and governance failures are at the heart of the infrastructure crisis. Years of mismanagement, along with billions lost to corruption, have crippled key state-owned enterprises like Transnet and PRASA, turning what should have been national assets into liabilities.
“The failure of these entities to maintain and expand critical infrastructure has been devastating for sectors that rely on seamless logistics, particularly mining and manufacturing.”
Ntoi said the delay in implementing some of the government’s promised reforms has deepened public distrust and deterred private investment, exacerbating infrastructure decline.
“Without clear and decisive action to address governance issues and the guidelines for their partnership with government, private sector stakeholders remain hesitant to fully engage in the kind of long-term partnerships needed to rehabilitate the sector,” he said.
The solution
Ntoi said that PPPs offer a viable way forward, with many examples as to how this can be accomplished.
He pointed to the Gautrain, which, although not without its criticisms, has proven that collaboration between the state and the private sector can deliver critical infrastructure projects that meet modern demands.
He added that other countries are also finding success with the strategy:
“Brazil’s success in revitalising its rail system through PPPs, India’s metro modernisation, and Singapore’s multimodal transport networks offer blueprints that could be adapted to South Africa’s context.”
“These countries have demonstrated how strategic investment and robust public governance can unlock long-term infrastructure growth and economic development,” he said.
The AIIM lead said that government initiatives like Operation Vulindlela are already laying the groundwork and that South Africa simply needs to embrace it to create jobs and transform the entire transport sector.
This includes a need to adopt smart technologies, and digital platforms, and leverage data analytics and artificial intelligence to create a solid and ready transport network.
“Additionally, environmental sustainability should be at the heart of this transformation, incorporating green technologies, such as electric buses and renewable energy-powered rail systems,” he said.
However, these are not things that should be pipe dreams or plans for the future – it’s something that requires action right now.
“South Africa’s transport infrastructure crisis is no longer a problem for tomorrow – it demands urgent action today,” he said.
“If successful, this could be the catalyst South Africa needs to reignite growth and improve the quality of life for millions.”
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