South Africa Needs Investable Projects

Stephen Barnes, head of Standard Bank Corporate and Investment Banking in South Africa, argues the country’s infrastructure development is hindered by a lack of bankable projects, not a lack of capital. President Cyril Ramaphosa recently highlighted infrastructure as a key investment frontier during a summit. A World Bank and Development Bank of Southern Africa report estimates South Africa needs roughly 13 trillion rand to modernize transport and logistics.

Government initiatives like Operation Vulindlela and the Renewable Energy Independent Power Producer Procurement Programme have increased momentum, but haven’t fully addressed the core issue. The country aims to attract 3 trillion rand, or 180 billion US dollars, in infrastructure investment over the next five years. Barnes contends that private capital exists but requires regulatory certainty, credible concession frameworks, and a systemic focus on bankability to commit.

A key factor is viewing infrastructure not solely as a public service, but as a regulated investment platform. While there’s a potential four-times multiplier effect on the economy for every rand invested in network infrastructure, realizing this requires a shift in approach and sustained policy. The work to create a system ready to receive investment continues.