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president ramaphosa
BOKSBURG – President Cyril Ramaphosa has called on the construction industry to seize the moment and turn South Africa into a bustling construction site by backing the government’s R1 trillion infrastructure drive over the medium term. Speaking at the second annual Nation Building Summit held at the Birchwood Hotel in Gauteng on Thursday, Prime Minister Ramaphosa stressed that the sector is ready to once again drive economic growth as it has since 1994. Following the latest data showing more than half of new jobs in the third quarter were created through construction, he said it was time to build roads, schools, hospitals and more to repair the legacy of apartheid and create opportunities for all. He warned against threats such as the mafia and thieves and vowed to take strong action to get the project off the ground. As the country prepares for the Group of 20 summit, his words highlight a shift to investments that will generate billions of dollars in economic growth and reduce unemployment.
Summit focus: Building a better nation
The two-day event brought together government leaders, industry leaders, and experts to accelerate infrastructure work. Mr Ramaphosa opened by saying the aim of the summit was to shape a country where everyone, not just industry, had access to basics such as water, electricity and safe schools. “We’re here not just to talk about building an industry, but to build a nation,” he said. “We are gathered here to share a dream and a commitment to building a country that works for all its citizens.”
He envisioned a South Africa without barriers. Children do not swim in the river to school and all facilities are modern and safe. From a people’s perspective, good infrastructure improves quality of life and combats inequality by reducing costs and increasing productivity. Economically, it attracts investment, supports trade and supports goals such as sustainable cities. “The roads we build, the bridges we build, the schools and hospitals we build are the foundations of opportunity and hope. Infrastructure is the engine that drives economic growth and social transformation,” Ramaphosa added.
Past challenges and recent victories
Mr Ramaphosa recalled that apartheid left many communities without real economic power, denying black people their livelihoods and depriving them of opportunities for generations. In recent years, inadequate maintenance of roads, railways, and ports has harmed mines, agriculture, and factories, while inadequate local government responses have forced businesses out and left communities in the dark.
But he also pointed to bright spots, such as the massive push for housing and services since democracy that has changed the lives of millions of people. The industry is broadly involved in manufacturing, mining, transportation and more, doubling employment. “We are starting to see a recovery in the construction industry. Infrastructure is about to become the flywheel of the economy again,” he said.
He linked this to Statistics SA’s latest quarterly workforce survey. “The Quarterly Labor Force Survey shows that the official unemployment rate fell from 33.2% in the second quarter of this year to 31.9% in the third quarter. Employment increased by 248,000 people in the third quarter. Construction made the largest contribution with 130,000 new jobs. These statistics reflect an upturn in the industry.”
Government’s large-scale infrastructure plan
To stay on track, the government has committed R1 trillion to infrastructure development over the next few years. As Finance Minister Enoch Godongwana said in his medium-term budget policy statement on Wednesday, spending is shifting from day-to-day expenses to investment, with capital items growing the fastest at 7.5% annually.
The Sustainable Infrastructure Development Symposium held earlier this year showcased more than 250 funded projects worth more than R230 billion in the water, energy, transport and digital sectors. Rules on public-private partnerships have been adjusted to attract more private funding, and new guidance on unsolicited tenders has also been published. “Alongside the increase in public infrastructure spending, we are taking steps to enable much greater private investment in infrastructure. This includes amending regulations on public-private partnerships and new guidelines on unsolicited tenders,” Ramaphosa explained.
Tackling obstacles: No mercy for disruptors
The President has made it clear that nothing will stand in his way. “We will not let anyone interfere with these efforts. We will not negotiate with the construction mafia. We will not give in to cable thieves and those who destroy infrastructure. Law enforcement will deal with those who break the law,” he warned.
The South African Construction Action Plan sets out strict rules for underperforming companies. “It is a framework for collective and individual responsibility, and a plan that sets measurable targets, real timelines and enforceable results. The plan outlines actions to prevent underperforming contractors from winning new contracts from the state. Its aim is to fix cash flow constraints and leverage technology to track construction projects in real time,” Ramaphosa said.
Every public works office will have a procurement war room to identify delinquencies, expedite bidding, and move projects forward quickly. The plan will also strengthen checks, governance and skills in the sector. “Essentially, this plan ensures that projects are started and completed on time, on budget, and without waste.”
G20 Summit and global connections
With just over a week to go before the first G20 leaders’ summit on African soil, Prime Minister Ramaphosa mentioned South Africa’s efforts at the G20 Disaster Risk Reduction Working Group. This focuses on building strong infrastructure that can withstand adverse weather conditions and helping countries recover after disasters. “In doing so, we have put infrastructure at the center of economic progress and human development,” he said.
Call to action: Turn your plan into a project
Mr Ramaphosa concluded by urging the industry to act. “Our country…is poised for great growth. We have the money, we have the leadership, we have the opportunity. Just go and build South Africa,” he said. “The aim of this summit is to ensure that these investments and reforms actually turn this country into a construction site. We want to see the cranes and construction vehicles in our cities, townships, villages and rural areas. When visitors travel by road, rail or plane, they must see the country at work.”
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