Written by Lelohonoro Rehana.
President Cyril Ramaphosa reiterated the strategic shift in government spending, from consumption to long-term investment, and emphasized that the construction industry is a key driver of South Africa’s economy.
Prime Minister Ramaphosa delivered the keynote address on Thursday at the 2025 Nation Building Summit held at the Birchwood Hotel in Ekurhuleni.
The annual summit, themed ‘Unlocking Infrastructure Delivery: Improving Construction Industry Performance’, brings together leaders from government, business, labor and civil society to discuss how to improve the efficiency of infrastructure delivery and performance.
The two-day Nation Building Summit 2025 brought together key figures including Minister for Public Works and Infrastructure Dean McPherson, Deputy Minister Sihle Zikalala, Mayor of Ekurhuleni Governorate Nkosindiphile Xhakadza, the Prime Minister, MECs, Mayors, and representatives from business, academia, labor and civil society.
Prime Minister Ramaphosa said Finance Minister Enoch Godongwana’s medium-term budget allocation of R1 trillion was at the heart of his government’s bold plans for the country.
On Wednesday, Godongwana Province announced that the government would allocate more than R1 trillion to public infrastructure projects under the Medium Term Expenditure Framework (MTEF).
“We have put infrastructure at the center of economic development and human development, and we look forward to the results of this summit,” the President said.
Mr Ramaphosa said infrastructure was the engine of economic growth and social change, warning that inadequate infrastructure could make South Africa more vulnerable to collapse and less attractive to investors.
He underlined the importance of a thriving construction industry, saying it was “a drag on the rest of the economy” and that stagnation in the sector would derail the country’s development goals and fuel social ills.
Earlier this week, Statistics South Africa (Stats SA) reported in its Quarterly Labor Force Survey that the construction sector created 130,000 new jobs, almost half of all jobs created in the latest quarter.
President Ramaphosa also issued a firm rebuke to the construction mafia and other subversive elements.
These groups pose a threat to the delivery of critical infrastructure services within the community, he stressed.
“We will not negotiate with the construction mafia and we will never give in to cable heists. In fact, we should say we have declared war on the construction mafia, but they will not stop us. I am satisfied with the progress we and law enforcement are making in dealing with those who try to stop us,” he said.
The construction mafia has been a problem for 15 years, affecting construction and development in South Africa.
McPherson said collaboration between law enforcement and industry is beginning to turn the tide against criminal networks that have long disrupted construction projects, extorted contractors and delayed the delivery of public infrastructure.
The government’s response began with the signing of the Durban Declaration, a joint initiative of the Department of Public Works and Infrastructure (DPWI), the South African Police Service and National Treasury, on 19 November 2024 in Durban, KwaZulu-Natal.
“The declaration was a desperate measure by the government, promising to restore law and order to construction sites and end a reign of terror that discourages investment, delays deadlines, and puts lives at risk.
“Since then, more than 770 cases of construction-related extortion and intimidation have been reported across the country, of which 241 people have been arrested and, most importantly, 176 people have been convicted,” Mr McPherson said.
Mr McPherson attributed the decline to a coordinated response between police, business actors and public bodies.
He also highlighted reforms to support emerging contractors through the reinvigorated Construction Industry Development Board’s National Contractor Development Framework. The initiative includes a R300-million budget allocation to help small builders enter the formal system with better compliance and support.
Mr McPherson acknowledged that while progress had been made in stabilizing the construction industry, further action was needed to restore investor confidence and ensure efficient project delivery.
He said one of the biggest challenges was the government’s slow payment process and delays in project approvals.
He added that procurement operations rooms have been established in all nine states and a national blacklist database has been developed to prevent repeat offenders from securing contracts. A new electronic resource planning infrastructure tracking system is also being piloted.
