A summary of 50 major new projects planned in South Africa

New projects planned in South Africa. Below is the summary.
Major initiatives planned in South Africa. Below is the summary.

Nedbank has released its latest capital expenditure project listing report, which details some of the country’s significant fixed investment projects. We will simply summarize the details on these projects based on Business Tech’s information.

The South African government and the business sector will both launch these projects, according to a Nedbank report. The bank’s listing implies that fixed investment activity is beginning to show signs of life after the pandemic-induced implosion. R208 billion in new projects were announced in 2021, up from R72 billion in 2020 and R138 billion in 2019.

“The private sector is leading the revival, planning R120 billion of new projects, accounting for 58% of all new projects announced in 2021,” the bank said.

“Capital projects by government and public corporations also picked up, driven the government’s ambitious plans to restore the country’s ageing and eroded economic infrastructure.”

The government announced that they want to embark on build massive infrastructure that will revive economic growth. The goal is to invest R2.3 trillion in 276 projects over the next ten years. But only 50 projects were highlighted as the priority projects with a total value of R352 billion.

The initiatives and plans included that fall under the umbrella of Strategic Integrated Projects are the N2 and N3 highway upgrade, phase 2 of the SA Connect project, the student housing programme, phase 2 of the Crocodile Mokolo water scheme, and the One-Stop Border Posts.

This publication though focuses on highlighting only 25 projects out of the 50 priorities. So, here is the list of the 25 initiatives to be initiated in South Africa

1. Projects to be initiated by the Government

The government is planning to invest and initiate five initiatives out of 25 of the prioritized projects. These projects are:

  •  SA Connect Phase 2, a telecommunications project with about R 20 billion to be invested.
  • Strategic Integrated Projects – Student Housing Programme, education based infrastructures with about R 3.4 billion rands set aside.
  • Crocodile Mokolo water augmentation project (CMWAP) – Phase 2, Water and sanitation infrastructure, with R 3 billion rands set aside.
  • One-Stop Border Posts, Public administration infrastructure, about R 1.5 billion rands to be invested.
  • MeerKAT extension project, Telecommunications infrastructure project with about R900 million rands set aside.

2. Projects to be initiated by public corporations

The public corporations are going to initiate only 6 out of 25 of the 50 prioritized projects or initiatives. These initiatives:

  • Eskom grid infrastructure investment plan, Electricity infrastructure which is estimated to cost R178 billion rands.
  • Gauteng Department of Roads and Transport infrastructure projects, Roads infrastructure with estimates costs of R17.4 billion rands.
  • South African National Roads Agency Limited (Sanral) N2 and N3 highway upgrade, Roads infrastructure with R30 billion rands to be invested.
  • Saldanha Bay Industrial Development Zone (Phase 1), Water and sanitation infrastructure which is estimated to cost R3.2 billion rands.
  • Prasa Cape Town commuter train service, railway infrastructure that is estimated to cost R3 billion rands.
  • Inxuba Yethemba local municipality road projects, roads infrastructure with R1.2 billion rands set aside to be invested in.

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3. Private sector’s investments

The Private sector is also embarking on investing in infrastructural projects planned to be initiated in the next ten years. They’re projects are:

  • Lanseria Smart Mega City, Real estate kind of infrastructure with about R500 billion rands set to be invested.
  • Renewable Energy Independent Power Producer Procurement Programme, Electricity infrastructure, to cost R50 billion rands.
  • Ford SA Silverton factory upgrade, Transport Equipment, R15.8 billion rands invested.
  • Vantage Data Centres Johannesburg Campus, Computers, R15.243 billion rands to be invested.
  • Two Rivers Merensky project, Gold &uranium mining, R5.7 billion rands
  • Gauteng Roads and Transport infrastructure, Roads infrastructure, with R5.6 billion rands set aside.
  • Zaaiplaats gold project, Gold and Uranium mining, Invested about R4.5 billion rands.
  • K4 platinum group metals (PGMs) project, Gold and Uranium mining, Invested about R3.9 billion rands.
  • Kareerand tailings facility, Gold & uranium mining, R3.2 Billion rands invested
  • Toyota South Africa Motors (Corolla Cross), Transport Equipment, R3 billion rands invested
  • Sibanye-Stillwater platinum group metals solar photovoltaic (PV) projects, Metal ore mining, about R2.5 billion rands invested.
  • South African Breweries (SAB) investment plan, Beverages, R2 billion rands invested.
  • Bekezela Colliery greenfield project, Coal & lignite mining, R1.5 billion rands
  • Transvaal Gold Minin g Estate Ltd (TGME) under ground project, Gold & uranium mining infrastructure, with 1.009 Billion rands of investments

If public sector initiatives ar completed, it will help to ease existing constraints on private activity and raise the country’s potential, says Nedbank. Nedbank: The focus of last year’s announcements is the focus on essential economic infrastructure, notably electricity, road and telecommunications.

“Although promising, the country’s electricity shortage and other infrastructure backlogs will not be lifted by these projects alone. Further large-scale investments in energy, road, rail, and port infrastructure are urgently needed to replace rapidly ageing existing infrastructure and expand infrastructure capacity in general.