Address by H.E. Deputy President Shipokosa Paulus Mashatile on the occasion of the Sustainable Infrastructure Development Symposium 2024 dinner

Members of the Executive:
Minister of Public Works and Infrastructure Sihle Zikalala;
Minister of Tourism Patricia de Lille;
Minister of Human Settlements Mamoloko Kubayi;
Minister of Transport Sindisiwe Chikunga;
Deputy Minister in the Presidency Kenny Morolong;
Deputy Minister of Transport Lisa Mangcu;
Our Guests and Leaders from the Continent
Minister of Works and Transport in the Kingdom of Eswatini Chief Ndlaluhlaza Ndwandwe;
Minister of Home Affairs in the Kingdom of Lesotho Lebone Lephema;
Minister of Local Government and Public Works in the Republic of Zimbabwe Winston Chitando;
Minister of Posts and Telecommunications in the Republic of Liberia Sekou M. Kromah;
Minister of Land and Housing in the Republic of Seychelles Billy Rangasamy;
Vice Ministro Don Pascual ONDO NZE OYANA Vice Ministro de Obras Publicas, Equatorial Guinea;
Ladies and Gentlemen;

Good Evening,

I am honoured to address this dinner tonight, as I believe in the work that Infrastructre South Africa has done over the past years. I wish to welcome all those who have come from out of South Africa to participate in this Symposium. You are most welcome to our country, and I hope that you will enjoy the hospitality that this nation has to offer.
 
The activities of the Symposium today have set the tone for government accountability as shown during the media briefing this afternoon, as well as through local collaboration and partnerships seen in the Memorandum of Understanding signed between government partners as well as the private sector.
 
Most importantly, this symposium sets the tone for collaboration and cooperation within the continent. I wish to congratulate Minister Zikalala for successfully convening the inaugural leader’s forum this morning with his counterparts in the continent and look forward to positive outcomes stemming from the deliberations.
 
As we gather this evening ahead of the final Sustainable Infrastructure Development Symposium South Africa in the sixth administration, it is important that we not only take stock of the success of the Infrastructure Investment Plan as adopted by the Cabinet in 2020, but that we also look to the future with optimism for infrastructure-led economic growth and prosperity.
 
On the 23^rd of June 2020, following a hard lockdown due to the COVID-19 global pandemic, the South African government held the inaugural Sustainable Infrastructure Development Symposium of South Africa, a culmination of extensive stakeholder consultation with both government and private sector role players in the infrastructure eco-system.

The symposium had a dual mandate of producing a credible infrastructure pipeline and further finding the finances required to support the delivery of that pipeline. At the time of the symposium, we had not yet experienced the full devastating effects of the global COVID-19 pandemic.
 
In the months that followed, it became clear that the country would need a decisive and aggressive plan to set the ball rolling for economic recovery, hence the establishment of the Economic Recovery and Reconstruction Plan, which has at its centre the delivery of quality infrastructure.
 
Ladies and Gentlemen,

The three central themes that anchor the Infrastructure Investment Plan have remained consistent throughout the sixth administration, These themes are quality infrastructure for development, recovery, and inclusive growth, all of these spearheaded by the government through policy development and implementation.
 
When we say development, we mean both the development and delivery of infrastructure and the development of our people through infrastructure delivery. When we say recovery, we mean the recovery of our economy through a large-scale infrastructure programme led and championed by the government.
 
When we say inclusive, we mean the redressing of spatial imbalances between urban and rural areas through infrastructure delivery programmes, which we believe will also address gender, racial and other inequalities. The entire population should be included in the benefits associated with infrastructure investment and subsequent gross fixed capital formation.
 
While we are aware of some of the challenges that curtail the fast pace of delivering quality infrastructure, we must use this Symposium to showcase some of the progress and successes that serve as a foundation for the incoming seventh administration, which we believe will be an administration that will bring continuity towards building a National Democratic Society.
 
In the last five years, we have paid specific focus on the strategic integrated projects that have the highest GDP impact, high employment absorption capacity, and localisation potential.
 
These projects due to their economic outlook have the potential to crowd in private sector investments due to their multiplier effect. We are proud to say that of the pipeline that we gazetted both in 2020 and 2022, almost R10 Billion worth of projects have completed construction, R233 Billion worth of projects are currently in construction and R170 Billion worth of projects are currently in procurement.
 
Some of the completed projects include strategic water projects like Vaal Gamagara Phase 1, the raising of the Hazelmere Dam wall, student accommodation across different universities, transport projects like the Musina Ring Road, national routes as well as Human Settlements projects that would include social housing projects.
 
Of much significance is the work done within the energy portfolio of projects. The energy project pipeline comprises more than 100 projects amounting to R240 billion, some of these programs have a value of over R100 billion, and these projects span transmission, gas, renewables, and green hydrogen.
 
Ladies and Gentlemen,

We have also noted the gap in the readiness and preparedness of projects for the market. In 2023, Infrastructure South Africa received its first tranche of funding to support projects with project preparation. This has proven itself a game changer as some projects show great potential but do not always have the fiscal allocation for technical support, legal support, or even capacity building.
 
The project preparation funding allows Infrastructure South Africa to support projects that otherwise would stay dormant for many years. It is important to note that of the first R200 million rand tranche received, 37 projects will already be receiving project preparation support.
 
This sixth administration has paid specific attention to unlocking regulatory impediments that hinder projects from going into construction sooner. Through the coordination and support of various departments and government stakeholders, Infrastructure South Africa has unblocked 195 permits for 47 projects.
 
A special mention must go to the Department of Forest, Fisheries and Environment, which has consistently issued permits and licensing within the specified timeframes of the Infrastructure Development Act. This stellar collaboration in government to aid private sector investment in infrastructure has built confidence in the South African government.
 
Tomorrow President Ramaphosa will give the Keynote Address at this Symposium, where I believe he will highlight South Africa’s commitment at the beginning of the sixth administration. Infrastructure South Africa has played a role in infrastructure development and has contributed to some of the key achievements in the sector, and it is indeed one of the best accomplishments of this government.
 
Ladies and Gentlemen,

We look forward to the launch of the construction book, which is a repository of projects going into procurement or construction in the 2024/2025 financial year, this will serve as an important indicator to the market that the pipeline of projects is realisable.
 
We also look forward to the announcement of the 12 Infrastructure project priorities for the 2024/2025 financial year that will replenish the pipeline and receive project preparation funding from ISA.
 
Lastly, allow me to express my confidence in this symposium to establish more strategic collaborations with our brothers and sisters in the continent. The African Continental Free Trade Area agreement remains an important platform for us as a continent to strengthen regional integration at both an economic and cultural level.
 
Transport infrastructure specifically is the cornerstone for economic expansion in the region, and we must make sure that we use the discussions and deliberations of the Symposium to bring tangible collaboration on bi-national projects that will strengthen the continent and its economy.
 
I wish you the best with the rest of the Symposium, and are confident in the outcomes and their capacity to further develop and advance South Africa and the continent at large.

Thank You,