The Government Employees Medical Scheme (GEMS) is a restricted medical scheme that provides accessible, affordable, and enhanced benefits to qualifying public service employees and their nominated beneficiaries. GEMS currently provides quality healthcare to over 2.4 million beneficiaries.
GEMS Mandate
To ensure that there is adequate provisioning of healthcare coverage to public service employees that is efficient, cost-effective and equitable; and to provide further options for those who wish to purchase more extensive cover.
Our Mission
To provide all members with equitable access to affordable and comprehensive healthcare; promoting member wellbeing.
Our Vision
To be an excellent, sustainable and effective medical scheme that drives transformation in the healthcare industry, aligned with the principles of universal healthcare coverage.
The medical scheme that understands the needs of the South African family.
PUBLIC SECTOR
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CHALLENGES AND OPPORTUNITIES
Welcome to the latest edition of The Public Sector, wherein we explore the challenges and opportunities shaping South Africa’s developmental landscape. At a time when economic resilience and social progress are deeply intertwined, the public sector stands at the heart of unlocking sustainable growth.
This issue brings together thought leaders who highlight both the urgency and possibility of reform across critical sectors. Water security, as outlined by Dr Sean Phillips, remains one of the nation’s most pressing challenges. With supply threatened by regional shortages and inef ciencies, co-ordinated investment in infrastructure and conservation is essential to ensure a future where access to water is safeguarded for all.
Infrastructure also lies at the centre of national growth. John Rammutla emphasises how transport planning, innovative funding models and the adoption of new technologies can drive productivity and economic expansion. However, transport solutions extend far beyond mobility: as Leon Bruwer reminds us, logistics partnerships play a critical role in healthcare
9 WATER SECURITY CHALLENGES
Addressing regional shortages and inef ciencies through co-ordinated infrastructure and conservation efforts.
WASTEWATER REUSE SOLUTIONS
Expert insights on leveraging global standards and transparency to restore trust and ensure water security.
delivery, ensuring life-saving supplies reach patients reliably and ef ciently.
We also examine how nancing is evolving in South Africa’s favour. Zen Dlamini highlights a turning point for infrastructure, where global capital is actively seeking bankable projects. Innovative nancing is unlocking doors that have remained shut for too long, signalling a shift towards real, scalable investment in national development.
Finally, the digital era demands new capabilities. MerSETA acting CEO Naphtaly Mokgotsane makes a compelling case for upskilling public servants, particularly in digital skills, to ensure the government remains agile and effective in a rapidly changing technological landscape.
I am sure that you will realise from this edition, as I do, that while South Africa faces daunting challenges in the public sector space, it is equally rich with innovation, collaboration and possibilities. In my interactions with all these experts, I was left with a renewed sense that South Africa’s path forward is rooted in bold vision, shared responsibility and a commitment to collective progress.
Busani Moyo
COPYRIGHT:
How strategic planning, funding and technology drive economic growth through resilient transport systems.
SKILLS DEVELOPMENT
Bridging the skills gap to enhance public service delivery and drive inclusive economic growth.
LOGISTICS PARTNERSHIPS
Strengthening patient access and system resilience through strategic medical supply management.
INFRASTRUCTURE FINANCING
Unlocking South Africa’s infrastructure potential through new capital solutions and bankable projects.
South Africa’s Green Shift
Turning policy into action through public-private partnerships.
By JACKWELL FERIS, director
& Trade sector, and CHARLES
and
sector head
GREEN
,
associate
– Industrials,
Manufacturing
– in the Government & State-Owned Entities sector at Cliffe Dekker Hofmeyr
South Africa is on the path to a greener future, driven by global climate commitments and national incentives.
Yet, this transition faces infrastructure de cits and scal constraints, raising a key question: can policy translate into tangible progress, or will it remain theoretical?
A promising solution lies in leveraging public procurement, particularly through public-private partnerships (PPPs), to drive sustainable development.
PUBLIC PROCUREMENT AS A CATALYST
Public procurement represents roughly 15 per cent of South Africa’s gross domestic, making it a powerful lever for sustainability. By prioritising environmentally friendly goods and services, the government can reduce pollution, lower energy usage and stimulate green industry growth.
PPPs are especially effective in embedding sustainability into infrastructure projects. Contracts can mandate renewable energy use, recycled materials and energy-ef cient technologies. This not only ensures compliance, but also opens opportunities for local suppliers to participate in green supply chains.
Recent policy developments reinforce this direction. The South African Renewable Energy Masterplan (SAREM), approved in March 2025, aims to expand renewable energy and battery storage, create jobs and position South Africa as a clean energy leader in Africa. Additionally, the Public Procurement Act of 2024 grants departments exibility to include sustainability goals in purchasing decisions. While not yet mandatory, it sets the stage for future regulations to make green procurement standard practice.
BRIDGING THE POLICY-ACTION GAP
Despite a solid framework, several challenges could hinder progress:
Skills gap in green procurement: many procurement of cials lack the training needed to design and evaluate green tenders effectively. This leads to poorly structured bids, undervaluing long-term bene ts, and a reluctance to adopt innovative solutions.
Cost versus long-term value: in a scally strained environment, the higher upfront costs of green technologies can deter adoption.
A shift in focus is needed from initial price to overall project cost-effectiveness.
For the private sector:
• Proactive investment: businesses must invest in local green technology manufacturing and workforce development to meet SAREM’s goals.
• Transparent engagement: companies should collaborate openly with government to shape realistic procurement rules and prepare to deliver sustainable solutions.
Infrastructure limitations: green projects often depend on outdated infrastructure. Without simultaneous major infrastructure, the effectiveness of green projects is severely compromised.
Barriers for SMEs: small and medium enterprises face challenges meeting complex environmental standards and affording certi cation costs, limiting their ability to compete in green tenders.
PROACTIVITY NEEDED
Both government and private sector stakeholders must take proactive steps:
For government:
• Develop practical tools: National Treasury should create a “Green Procurement Toolkit” with standardised clauses and evaluation metrics to guide of cials.
• Mandate and monitor: departments must be required to implement green procurement projects and report on outcomes to ensure accountability.
• Support SMEs: funds should be established to help small businesses with green certi cation costs. PPPs should encourage subcontracting and mentorship of local suppliers.
A BANKABLE, SUSTAINABLE FUTURE
As South Africa transitions to a lowcarbon economy, PPPs offer a practical route to implement green policies. This approach can unlock funding sources such as the Just Transition Fund, making critical infrastructure projects nancially viable. However, current policies are only blueprints. To avoid becoming another unful lled plan, government must lead by example – embedding enforceable green criteria into contracts and fostering a culture of accountability. Success depends on a radical partnership between public leadership and private innovation, working together to build a sustainable future for all.
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Jackwell Feris
Charles Green
ACTION, REFORM AND RESPONSIBILITY
Securing South Africa’s water future
South Africa faces growing water security challenges, with key regions experiencing deficits. DR SEAN PHILLIPS , director general of the Department of Water and Sanitation, outlines government initiatives, sector reforms and the shared responsibility needed to ensure sustainable water use
South Africa’s water security is increasingly constrained by the combined pressures of economic growth, urbanisation, population expansion and climate change. While national water resources currently balance overall demand, key regions such as Gauteng and eThekwini face de cits that could worsen unless measures to secure supply and reduce waste are implemented effectively.
Raw water availability is threatened by inef ciencies in municipal distribution systems, environmental degradation, pollution from industrial and sewage sources and the effects of climate change. Addressing these challenges requires a dual approach: expanding and securing water supply while improving conservation, ef ciency and governance across the sector.
GOVERNMENT INITIATIVES
Government initiatives aim to strengthen national infrastructure and management capabilities. Long-delayed projects, including the second phase of the Lesotho Highlands Water Project to supply Gauteng and the Mkhomazi project to serve eThekwini, are now in implementation. In parallel, the establishment of comprehensive Catchment Management Agencies is nearing completion, enhancing the protection and management of critical water sources.
The National Water Resource Infrastructure Agency, enacted by Parliament last year and scheduled for full establishment next year, will own all national dams and associated revenue streams. By leveraging these assets, the agency will secure additional funding for new dams and infrastructure investments.
SEEKING ALTERNATIVES
Expanding South Africa’s water resource mix is equally essential. Surface water development is nearing sustainable limits, with approximately 75 per cent of resources already harnessed. Consequently, towns and cities are exploring alternative sources, including seawater desalination, treated wastewater reuse and groundwater extraction. These measures will complement, rather than replace, the need for ef cient use of existing resources.
Supply-side interventions alone cannot prevent future de cits. Water conservation and demand management must be strengthened, particularly in domestic and industrial contexts. Municipal inef ciencies, re ected in high nonrevenue water, exacerbate scarcity. The 2023 No Drop report found that municipalities
ACHIEVING SUSTAINABLE WATER SECURITY IN SOUTH AFRICA REQUIRES A UNIFIED APPROACH.
lose an average of 47.4 per cent of treated water due to leakage, mismanagement or weaknesses in billing and revenue collection, perpetuating a cycle of undermaintained infrastructure and continued water loss.
Municipal water services reforms are now underway to address these systemic issues. The move toward a utility model aims to ringfence revenue from water sales for the water function and establish clear, singlepoint accountability for water management within municipalities. This approach is critical for breaking the cycle of inef ciency and ensuring reliable service delivery.
Recent audits, including the Blue Drop, Green Drop and No Drop reports, reveal a decline in municipal drinking water and wastewater system performance since 2013. Key challenges include insuf cient staf ng, lack of skilled personnel and inadequate budgeting for operation and maintenance. Reforms targeting these areas will strengthen water governance and resilience across local systems.
Ultimately, achieving sustainable water security in South Africa requires a uni ed approach. Leaders across government, political parties, industry, business and civil society must adopt the shared responsibility of using water sparingly, managing it ef ciently and investing in both infrastructure and human capacity. Through a combination of supply augmentation, conservation, governance reform and sector-wide accountability, South Africa can secure its water future for generations to come.
Dr Sean Phillips
FROM WASTE TO RESOURCE
Why South Africa must rethink water reuse
South Africa’s water crisis demands bold leadership. HERMAN STOOP, governance, risk and compliance specialist at World Wide Industrial and Systems Engineers, argues that wastewater reuse, governed by global standards and transparency, is key to restoring trust and securing future water security
For years, South Africa has treated water as an in nite supply, but our dams, rivers and infrastructure tell a different story. Today, one in three water systems is on the brink of failure, and compliance levels are falling at an alarming rate. Meanwhile, demand grows in our cities, climate change accelerates drought and service backlogs deepen.
Against this backdrop, the idea of recycling wastewater – what critics call “toilet to tap” – is often met with scepticism or outright rejection. The phrase is provocative, even distasteful. Yet, as someone working daily in governance, compliance and water systems, I believe it is time we confront this issue honestly: wastewater reuse is not our future; it is already our present.
The real question is whether we will manage it responsibly, transparently and effectively.
WASTEWATER IS NOT THE ENEMY
Too often, people assume wastewater reuse is inherently unsafe. Nothing could be further from the truth. Treated wastewater, when governed through the correct systems, can be cleaner than much of the water currently owing into households from polluted rivers or poorly maintained municipal networks.
The danger lies not in the science, but in the execution. Poor infrastructure, a lack of skilled personnel and an absence of rigorous oversight turn what could be a safe, sustainable water source into a public health risk. Safety is not a technical impossibility; it is a governance issue.
STANDARDS BUILD TRUST
This is why I consistently advocate for adopting international best practices such as ISO standards. Frameworks like ISO 9001 (Quality Management), ISO 24510 (Drinking Water and Wastewater Services) and
POOR INFRASTRUCTURE, A LACK OF SKILLED PERSONNEL AND AN ABSENCE OF RIGOROUS OVERSIGHT TURN WHAT COULD BE A SAFE, SUSTAINABLE WATER SOURCE INTO A PUBLIC HEALTH RISK.
ISO 14046 (Water Footprint) provide far more than box-ticking exercises. They bring structure, evidence and auditability into municipal processes. They create systems where public of cials can prove, with data, that water is safe. Most importantly, they give citizens the transparency they deserve.
In a country plagued by mistrust and failures in public service delivery, trust may be the most precious resource of all. South Africans need to know not only that their water is safe, but also why they should believe it is safe. Standards open the door to that kind of credibility.
THE INVESTMENT EQUATION
Adopting standards is not enough. We need investment in plant upgrades, better reporting systems, decentralised treatment and a relentless commitment to skills development.
Too often, municipalities bleed expertise –skilled engineers or water managers resign, and their knowledge goes with them. Training, retaining and empowering public servants is non-negotiable if we want to stabilise the sector. At WWISE, we see how ISO-based systems embed institutional learning. They ensure that when people change, processes don’t collapse with them. That continuity is invaluable for fragile municipalities trying to rebuild.
LEARNING FROM GLOBAL LEADERS
South Africa is not the rst nation to confront water scarcity. Namibia has relied on potable reuse for decades. Through its NEWater programme, Singapore has proven that recycled water can meet nearly half of the national demand – not only through engineering, but also public communication campaigns that built con dence and cultural acceptance.
These examples prove one critical point: water reuse is not a desperation measure. It is a credible, sustainable, future-proof strategy if underpinned by transparency, standards and accountability.
CHANGING THE NARRATIVE
It’s time we stopped asking whether South Africa should embrace wastewater reuse. We already do. What matters now is how we choose to manage it: haphazardly or with governance structures that ensure safety, accountability and public trust.
I believe wastewater is not waste – it is one of our most underutilised resources.
In a country where billions are lost to poor governance and mismanagement, building credible water reuse systems is not just necessary; it is an opportunity to restore public con dence and secure our future.
The choice is clear: continue stumbling toward crisis or lead with vision, structure and transparency. As a governance and compliance practitioner, I know what is possible when standards are applied with integrity. As South Africans, we cannot afford not to act.
Follow: Herman Stoop www.linkedin.com/in/hermanstoop
Herman Stoop
TACKLING WASTEWATER CHALLENGES WITH HOMEGROWN INNOVATION
South Africa’s municipalities face mounting pressure to deliver reliable water and sanitation services. Ageing infrastructure, skills shortages and funding constraints combine to make wastewater management one of the toughest service delivery challenges.
Sewer spillages, blocked drains and inadequate maintenance are not just inconvenient; they present serious health and environmental risks.
Given these challenges, municipalities need robust, ef cient and locally supported solutions. Werner Pumps has been manufacturing high-pressure jetting and vacuuming equipment in Springs for more than 37 years. The company has become a partner to local governments and contractors alike, supplying vehicles that enable frontline teams to unblock drains, clear sewer lines and respond quickly to emergencies.
EQUIPMENT BUILT FOR AFRICAN CONDITIONS
Werner Pumps’ agship vehicle, the Impi Combination Truck, is already making a difference in towns like Mogalakwena in Limpopo, where the municipality recently received a truck through a mining, social and labour plan. The unit is designed to jet water into blocked lines to dislodge waste and simultaneously vacuum the debris into a sludge tank. With a capacity of 12 500 litres, a 295 litres-per-minute ow rate and a maximum pressure of 135 bar, it allows municipal teams to clear lines more effectively and keep sewage spills at bay.
The company’s new generation recycling units take innovation a step further. By reusing the water vacuumed during operations for jetting purposes, these trucks can save up to 168 000 litres of clean water in a single eight-hour shift. They have already been deployed in Gauteng’s Rand West Municipality, which has since ordered a second unit.
By WERNER PUMPS
“These are truly all-in-one vehicles,” says Sebastian Werner, managing director of Werner Pumps. “They save water, time and money, while enabling maintenance teams to keep infrastructure functioning in even the most resource-constrained conditions.”
SUPPORTING SERVICE DELIVERY
Werner points out that wastewater management is an invisible but essential service that underpins public health, economic activity and quality of life. “When municipalities are equipped with the right tools, their teams can work faster and more ef ciently, reducing service backlogs and improving sanitation for residents,” he says.
For Werner Pumps, supplying vehicles is only part of the solution. The company also provides training, technical support and a wide range of accessories – from high-pressure hoses to nozzles – so that clients can get the most from their investment. With all products locally manufactured and backed by ISO 9001:2015 and ISO 14001:2015 certi cation, customers can be con dent of quality and durability.
A CALL FOR SMARTER PROCUREMENT
However, as Werner points out, supplying world-class equipment is not enough if the procurement system doesn’t support effective service delivery.
“There are many dedicated municipal teams who want to serve their communities well, and we are proud to support them,” he says. “But when procurement processes are slow or payments are delayed, it puts pressure on both municipalities and the small-and medium-sized companies that are helping them deliver essential services. If procurement challenges were addressed, municipalities would be able to get the right tools into the eld faster, and service delivery would improve for everyone.”
BUILDING RESILIENCE TOGETHER
Despite the hurdles, Werner Pumps remains committed to being part of the solution. The company’s vision is not just to manufacture vehicles, but also to enable South Africa’s municipalities to build resilience in the face of water scarcity, urbanisation and economic pressure.
By designing equipment for local conditions, investing in innovation, such as water recycling, and working closely with clients, Werner Pumps is helping municipalities – and the contractors that support them – to keep wastewater systems functioning. In doing so, the company is contributing to a stronger, healthier South Africa.
ENSURING FAIR TREATMENT FOR FINANCIAL CUSTOMERS
THE OMBUD COUNCIL , established by the Financial Sector Regulation Act, 2017, is mandated to assist in ensuring financial customers have access to and can use affordable, effective, independent and fair alternative dispute resolution processes for complaints about financial institutions
The Ombud Council’s vision is to ensure a known, trusted and easily accessible ombud system exists for all in the nancial sector.
THE FINANCIAL OMBUD SYSTEM: WHO CAN HELP YOU?
Unfairly treated by your nancial institution? You have the right to fair treatment and to complain if this is not the case. The nancial ombud system provides a trusted, free and accessible way to resolve complaints without the need for lawyers.
WHICH OMBUD CAN ASSIST YOU?
National Financial Ombud (NFO): handles complaints about banking services, credit providers, life and non-life insurance, such as internet banking issues, credit card fraud, loans, debit orders, claims disputes and more.
Ombud for Financial Services Providers (FAIS Ombud): deals with complaints about bad nancial advice, mis-selling and intermediary services related to various nancial products, including insurance, investments and crypto assets. The FAIS Ombud also has backup jurisdiction for complaints that other schemes do not cover.
Johannesburg Stock Exchange Ombud (JSE Ombud): assists authorised JSE users and their clients with complaints under the JSE Market Rules. Contact the JSE group secretary or the head of group compliance for more information.
WHY DOES THE OMBUD SYSTEM MATTER?
Financial customers have the right to fair treatment by nancial institutions. If they feel unfairly treated, they can complain directly to the institution. If unresolved, customers have the right to access and use the nancial ombud system.
The Ombud system:
• Helps thousands of customers resolve complaints fairly and without cost. In 2024/25, over 49 000 complaints were handled, returning at least R457-million to consumers across schemes.
• Provides an “add-on” advantage for customers dealing with licensed nancial institutions and nancial services providers.
• Supports the Treating Customers Fairly (TCF) framework by ensuring fairness is not con ned to contractual terms.
• Proactively identi es emerging risks through complaint data and trends.
• Shares information with regulators, such as the Financial Sector Conduct Authority and the National Credit Regulator, for evidence-based supervision and regulation.
WHAT DOES THE OMBUD COUNCIL DO?
The Ombud Council’s key responsibilities include:
• Monitoring the performance of all nancial ombud schemes, both statutory and industry schemes.
• Recognising industry ombud schemes and approving their governing rules.
• Promoting co-operation and co-ordination between schemes and resolving any jurisdictional overlaps.
The Ombud Council: Ensuring Fair Treatment for Financial Customers
The Ombud Council: Ensuring Fair Treatment for Financial Customers
The Ombud Council: Ensuring Fair Treatment for Financial Customers
• Resolves disputes with minimum formality – no lawyers required – and services are free and accessible in all South African languages.
Why does the Ombud System Matter?
Why does the Ombud System Matter?
Why does the Ombud System Matter?
• Supports nancial inclusion by helping vulnerable and disadvantaged customers.
Office of the Pension Funds Adjudicator (OPFA): resolves pension fund-related disputes about fund administration, investment and rule interpretation. Eligible complainants include members, bene ciaries, employers, spouses, fund boards and others with an interest.
• Raising public awareness of the ombud schemes and what they do, and supporting nancial inclusion.
• Facilitating easy access to the schemes.
• Protecting the independence of ombud schemes.
• Reporting to the Minister of Finance on complaint trends and conduct risks.
• FAIS Ombud and the OPFA statistics are for the financial year April 2024 to March 2025.
• FAIS Ombud and the OPFA statistics are for the financial year April 2024 to March 2025.
• FAIS Ombud and the OPFA statistics are for the financial year April 2024 to March 2025.
• FAIS Ombud and the OPFA statistics are for the financial year April 2024 to March 2025.
• NFO statistics are in respect of the 10 month period from March to December 2024
• NFO statistics are in respect of the 10 month period from March to December 2024
• NFO statistics are in respect of the 10 month period from March to December 2024
• NFO statistics are in respect of the 10 month period from March to December 2024.
WHAT POWERS DOES THE OMBUD COUNCIL HAVE?
The Ombud Council is the regulatory authority over the nancial sector ombud system and has a full suite of regulatory, supervisory and enforcement powers over ombuds and ombud schemes:
• Making binding Ombud Council Rules (subordinate legislation), which impose obligations on ombuds and schemes.
• Conducting on-site inspections and gathering information.
• Designating ombud schemes to deal with certain complaints where there are jurisdiction gaps.
• Enforcement powers such as directives, suspensions, revocations, administrative penalties and debarment.
The Council published the Ombud Council Rules for the Ombud for Financial Services Providers (FAIS Ombud) in July 2024. These updated rules increased the maximum compensation award from R800 000 to R3.5-million and introduced procedural improvements.
WHAT CAN THE OMBUD COUNCIL NOT DO?
• The Ombud Council is not an ombud scheme and does not handle individual customer complaints.
• It does not serve as an appeal or escalation body for dissatis ed customers unhappy with an ombud scheme’s decision. However, the Council can investigate complaints about an ombud scheme’s compliance with nancial sector laws or its governing rules or if it followed a materially inappropriate process.
WHICH OMBUD SCHEMES DOES THE OMBUD COUNCIL OVERSEE?
The Council oversees both statutory and industry ombud schemes, including:
1. Statutory Schemes:
• Of ce of the Pension Funds Adjudicator (OPFA).
• Ombud for Financial Services Providers (FAIS Ombud).
2. Industry Schemes:
• National Financial Ombud (NFO): the NFO is a recognised industry scheme established and recognised by the Ombud Council on 1 March 2024 through the amalgamation of four previously recognised industry ombud schemes: the Credit Ombud, Ombudsman for Banking Services, Ombud for Long-term Insurance Ombud and the Ombud for Short-Term Insurance.
• Johannesburg Stock Exchange Ombud (JSE Ombud).
HOW DOES THE OMBUD COUNCIL PROMOTE AWARENESS?
The Council works collaboratively with nancial sector stakeholders, including the Financial Sector Conduct Authority (FSCA) and ombud schemes, to promote public awareness and education on the ombud system.
“Know Your Ombud” is one of the Council’s recent initiatives, in partnership with consumer journalist Maya Fisher-French, helps nancial customers understand their rights and what to do if they are treated unfairly. In the introductory episode of a series of videos on the ombud system, Leanne Jackson,
THE OMBUD COUNCIL’S VISION IS TO ENSURE A KNOWN, TRUSTED AND EASILY
Chief Ombud/CEO of the Ombud Council, explains how the nancial ombud system works, the role of the Ombud Council, and how the Treating Customers Fairly principles go beyond contracts to ensure fairness. The series also features case insights from three of the schemes, the NFO, FAIS Ombud and the OPFA. The full series may be watched here
Ensuring an accessible and trusted financial sector ombud system
Ensuring an accessible and trusted financial sector ombud system
HOW COLLABORATION HELPS DELIVER THE PROMISE OF RENEWABLE ENERGY
The right advice when planning, bidding for or implementing renewable energy infrastructure is key. BDO SOUTH AFRICA works with both the public and private sectors to ensure all relevant boxes are ticked
Renewable energy projects and their positive impact on the climate are vital to the future of the world. They are complex projects that generally involve public-private partnerships (PPPs), and need a company like BDO South Africa to provide advisory services to help these entities navigate such complex challenges through the provision of nancial, advisory and compliance services, among others.
Nato Oosthuizen, partner and head of renewable energy at BDO South Africa, says there are multiple phases to a renewable project, with different organisations involved in each, and different services to be rendered. BDO, he explains, offers services across the scope of a project, from development, through construction and into the operational phase.
“We offer a range of services from a corporate legal perspective. From helping set up the entities and structures needed to develop the energy-delivering enterprise and assisting with crunching the numbers and developing nancial models to running sensitivity analysis and even forecasting the project’s overall viability, we can do it all,” he says.
“From a legal and tax point of view, we can help set up the optimal structure for the entity, while assisting with nancial, economic and skills-impact assessments, helping to
determine the potential economic impact on surrounding communities, and the job creation potential of the project.”
BDO further helps clients with their bid submissions – ensuring they are bid-ready by collating the necessary documents, streamlining the numbers and developing more detailed technical input – essentially, making sure all the relevant boxes are ticked.
“If the client is successful, we can then offer services, such as auditing, accounting, payroll and tax assistance, as well as provide advice around compliance and the Companies Act. So, we are able to walk a long journey with them, as their business advisor of choice,” he notes.
CHALLENGES AND RISKS
Christelle Grohmann, partner: strategic development and advisory at BDO South Africa, adds that the creation of PPPs in such instances is vital, as these ensure that all the risk does not lie in one place, while making sure that the infrastructure development needed to grow the economy is implemented.
“Often, an energy project is considered as the rst phase towards a larger economic impact – such as the implementation of an industrial zone. The challenge for government is that it needs the energy to be available before it can implement such a plan, creating a ‘chicken-and-egg’ scenario. BDO can offer advice around the various ways to get the
ball rolling to ultimately deliver such larger bene ts,” she says.
Oosthuizen suggests that when a PPP is entered into, plenty of forward-forecasting and thinking is required, which is captured in a complex nancial model.
“We work with the client – who may be from government or the private sector side – so they can more clearly understand this complex model, how it works, how to assess potential sensitivities, and how to properly interpret the data to make the best decisions. It is very much a collaborative process.”
Grohmann indicates further that the key to a successful renewable project lies in government and the private sector working together to nd a solution that will deliver the services people need.
“Government’s role is to provide the facilitating environment, while the private sector must bring the funding and expertise. Working together, they can build effective facilities that can help the country develop smarter cities, thereby creating both jobs and economic growth.
“As for BDO, we see our purpose as assisting wherever we can to achieve these dreams. Ultimately, we are part of society, so although our core focus remains on our clients, it is gratifying to be part of a bigger picture, helping craft the right solution that will enable SA to grow the economy and build a stronger nation,” she concludes.
“THE KEY TO A SUCCESSFUL RENEWABLE PROJECT LIES IN GOVERNMENT AND THE PRIVATE SECTOR WORKING TOGETHER TO FIND A SOLUTION THAT WILL DELIVER THE SERVICES PEOPLE NEED.” – CHRISTELLE GROHMANN
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Nato Oosthuizen
Christelle Grohmann
DRIVING GROWTH THROUGH SMARTER TRANSPORT PLANNING
Public sector transport planning, innovative funding and technology are key to unlocking economic growth and building resilient infrastructure. By JOHN RAMMUTLA , principal associate: highways, transport and infrastructure at WSP AFRICA, an engineering, advisory and science-based professional services firm
Transport infrastructure and planning are key enablers of trade and drivers of economic growth. These networks represent invaluable assets, not merely in terms of monetary worth, but also the signi cant socioeconomic bene ts they bring. The ability to move people, goods and services seamlessly lies at the heart of modern life, connecting participants within the economy – businesses and individuals – and fostering progress. For the public sector, the stewardship and development of these networks are fundamental to national prosperity.
South Africa, for example, boasts an extensive network of transportation assets, including vast roadways, comprehensive rail systems, airports, seaports and maritime networks. Together, these form one of the country’s most valuable national assets. Given the current state of prioritisation of infrastructure projects, public sector bodies must establish a long-term transport infrastructure vision that encapsulates how people will live, work and play – a vision extending well beyond 2030.
Maintenance of existing infrastructure, and planning and development of new, future-ready infrastructure is fundamental to economic activity and therefore to economic growth. The safe and reliable movement of goods, services and people is essential to prevent stagnation. Transport networks are vital in unlocking opportunities at micro- and macro-economic levels, playing an instrumental role across mainstream and secondary economies.
PLANNING FOR EFFICIENCY AND PUBLIC BENEFIT
The impact of ef cient and well-thought-out transport networks extends far beyond functionality, in uencing societal transformation and environmental outcomes. Through thoughtful planning and collaboration, transport systems
can become catalysts for improved quality of life and community development.
In designing solutions to address speci c public needs – such as revitalising neighbourhoods, waterfront development, transit-oriented downtown improvement or planning for regional growth – thorough planning helps turn transport infrastructure projects into de ning landmarks that contribute meaningfully to society. Effective strategies focus on equitable and inclusive designs that re ect the interests of all stakeholders from the outset. In this way, transport planning becomes a transformative force that enriches communities and economies.
INNOVATIVE FUNDING FOR PUBLIC INFRASTRUCTURE
mutual understanding of each party’s perspective and needs – immense opportunities for collaboration can be created. Currently, the magnitude of what can be achieved through collaboration is immeasurable. Still, it could range from transferring skills to joint strategic planning initiatives and delivery through joint ventures or public-private partnerships.
TECHNOLOGY AND INNOVATION
In addition to more effective collaboration, leveraging Intelligent Transportation Systems (ITS) to digitalise transportation networks will further economic growth through ef ciency and safety. ITS integrates cutting-edge information and communication technologies into transportation and traf c management to enhance safety, ef ciency and sustainability, while reducing congestion and enriching the driving experience.
Even the best-laid plans can fail without funding. Traditional funding models, such as reliance on government budgets or bank loans, often fail to address the growing infrastructure demands communities face. In response, alternative nancing approaches have emerged, leveraging public and private resources to meet these needs.
For a country like South Africa, ef cient planning and robust and innovative funding strategies are essential for unlocking the potential of transport networks. Sincere collaboration between the public and private sectors must form the foundation of engagement for this approach to succeed. Once open channels of engagement and trust are established and cemented – based on
These advancements allow road administrations to revolutionise highway network management and operations. ITS enables the automation of traditionally manual activities, real-time monitoring and adjustment of road network performance and access to richer data sources that eliminate dependency on expensive physical infrastructure.
Furthermore, real-time data analytics allow for more dynamic decision-making than reliance on historical data, and road-user behaviour can be in uenced through diverse channels like mobile devices and in-car systems, rather than solely by road signs. To unlock the full potential of ITS, road administrations must adopt comprehensive strategies to unify existing systems, services and operational methodologies over time, ensuring a seamless transition into a more intelligent and interconnected transportation future.
PUBLIC SECTOR BODIES MUST ESTABLISH A LONG-TERM TRANSPORT INFRASTRUCTURE VISION THAT ENCAPSULATES HOW PEOPLE WILL LIVE, WORK AND PLAY.
John Rammutla
STRATEGIES TO ADDRESS the DIGITAL SKILLS GAP
South Africa’s future depends on bridging the digital skills gap. Investing in upskilling public servants will unlock competitiveness, improve service delivery and drive inclusive economic growth, writes NAPHTALY MOKGOTSANE , acting CEO of the Manufacturing, Engineering and Related Services Sector Education Training Authority
When we talk about South Africa’s future, it is impossible to ignore the role of technology. Every industry, from manufacturing to public administration, is changing before our eyes. Yet too many people, including those in the public sector, are not equipped with the digital skills needed to thrive.
This is not an abstract concern. It appears in delayed service delivery, companies struggling to stay competitive and rural communities cut off from digital participation. Young people, despite ambition, often lack the digital foundation to nd meaningful work. Without urgent action, the gap will widen further. We may build advanced systems for e-licensing, e-payments, and digital services, but we nd that the people tasked with running them cannot manage them effectively.
The issue starts with foundational literacy. New entrants to the workforce often lack basic digital competence, making it dif cult to upskill them on the job. Productivity suffers and transformation slows, not because the technology is unavailable, but because we have not invested enough in people.
THE VALUE OF PARTNERSHIPS
At merSETA (Manufacturing, Engineering and Related Services Sector Education Training Authority), we tackle this issue in ways that hold lessons for the public sector. A core focus is partnerships with TVET colleges, where we have established fourth industrial revolution centres across several provinces. These centres aim to make training more accessible and closely aligned with industry needs. Just as important is investing in the lecturers themselves, equipping them to deliver workplace-relevant learning rather than relying on outdated curricula.
Technology-enabled learning has become a powerful enabler. By introducing virtual and augmented reality, learners can gain practical experience through simulation, even in settings where physical infrastructure is limited. This accelerates training and ensures access is not con ned to better-resourced urban centres. Yet infrastructure alone will not close the gap. We must also shift perceptions. Too often, vocational training is viewed as a second-rate option. By engaging with students through digital platforms and social channels, we show them that careers in manufacturing, engineering and related services are modern, rewarding and central to South Africa’s growth.
No single institution can bridge the skills divide alone. Sustained progress depends on deep partnerships between industry, government and training providers. At merSETA, we work with employers to co-develop curricula and provide industry placements, ensuring training directly re ects labour market realities. This approach not only prepares learners better, but also improves their chances of employment.
SHAPING A DIGITAL FUTURE
WE MUST CREATE INCLUSIVE PATHWAYS TO ENSURE YOUNG PEOPLE, WOMEN AND PEOPLE WITH DISABILITIES ARE FULL PARTICIPANTS IN THE DIGITAL ECONOMY.
those trained nd meaningful employment or create opportunities for themselves and others. That is why we track learner absorption into jobs or self-employment. We also endeavour to integrate entrepreneurship training, so that mechanics, technicians, and artisans who cannot nd immediate placement still have the tools to build enterprises.
My vision for the public sector and South Africa is one where digital literacy becomes as fundamental as reading and writing. Public servants should be able to manage and sustain modern systems con dently. Citizens should be given access to engage seamlessly with digital platforms. We must create inclusive pathways to ensure young people, women and people with disabilities are full participants in the digital economy.
If we succeed, we will build a workforce that can use advanced technologies and maintain and innovate on them. We will reduce reliance on imported expertise, strengthen public service delivery and ensure South African industries remain globally competitive. The digital skills gap is indeed one of our greatest challenges, but it is also one of our greatest opportunities. By acting decisively, we can empower people, stimulate growth and position South Africa to shape, rather than merely follow, the fourth industrial revolution.
Success cannot be measured purely by training numbers, but also whether Follow: Naphtaly Mokgotsane www.linkedin.com/in/naphtaly-mokgotsane-431a1616
Naphtaly Mokgotsane
HEALTHCARE’S HIDDEN LIFELINE
Strategic logistics partnerships strengthen healthcare systems, ensuring life-saving medicines and equipment reach patients securely, efficiently and on time, shares LEON BRUWER, MD Sub-Saharan African sales at Fedex
When we envision public healthcare, our focus often falls on hospitals, medical professionals or policy decisions. Yet an unseen, incredibly complex network underpins it all – the journey of every single life-saving medication and critical medical device. In nations grappling with challenging infrastructure, strict regulations and the urgent need for equitable distribution, the secure and timely delivery of these supplies is not merely a support function; it is, quite literally, a lifeline. For public sector leaders, this profound reality demands a fundamental shift: logistics must evolve from an operational necessity to a strategic pillar, indispensable for building national health resilience and ensuring widespread patient access.
WHY HEALTHCARE LOGISTICS IS SO COMPLEX
The healthcare supply chain is arguably one of the most complex in the world, where the margin for error is razor-thin and the consequences of missteps can be dire. Pharmaceuticals, especially, are subject to meticulous regulation and extreme sensitivity to environmental uctuations. Consider the precise co-ordination required for the delivery of antiretroviral medications, where consolidation and timely absorption into national distribution systems are paramount. A slight delay or temperature excursion can render vital medicines unusable, leading to costly waste and, more critically, interruptions in patient care. Beyond pharmaceuticals, the delivery of medical instruments, surgical tools and diagnostic devices, while not always temperature-sensitive, is equally time-critical. A single missing component can halt a critical operation, underscoring that reliability and precision are non-negotiable across the entire spectrum of medical supplies. This
inherent complexity highlights why traditional in-house public sector logistics models may no longer suf ce. The sheer scale, regulatory burden and need for specialised infrastructure often exceed public capacities.
THE POWER OF STRATEGIC PARTNERSHIPS
Strategic partnerships with expert logistics providers are transformative. When providers invest to overcome challenges, such as fragile cold chains, regulatory hurdles and cross-border distribution, vital medicines and equipment arrive safely. Through advanced storage, temperature control and customs expertise, logistics becomes a lifeline for resilient healthcare delivery. Beyond these capabilities, the choice between air, sea or rail freight involves nuanced trade-offs in speed, cost and cargo integrity, decisions that specialist logistics providers are uniquely equipped to optimise.
TECHNOLOGY AS THE NEW STANDARD
Crucially, technology has become central to managing both risk and accountability. While direct intervention mid-shipment may be limited, sophisticated monitoring tools provide near real-time data, con rming whether critical parameters have been maintained throughout a shipment’s journey. This transforms logistics into a process of veri cation as much as transportation, ensuring compliance with medical standards and ultimately safeguarding patient safety. The strategic shift by some providers to secure dedicated pallet allocations further exempli es this proactive approach, offering greater control over shipping schedules and minimising the risk of
RESILIENT HEALTHCARE SYSTEMS CANNOT BE BUILT WITHOUT EQUALLY ROBUST AND RESILIENT LOGISTICS NETWORKS.
cold chain compromises. This level of granular control and consistency is precisely what the public healthcare sector requires for dependable service delivery.
BUILDING RESILIENCE – A CALL FOR STRATEGIC INTEGRATION
For public sector leaders, the lesson is clear: robust, resilient healthcare systems cannot be built without equally robust and resilient logistics networks. Rather than viewing logistics as a mere cost centre, it must be recognised as a strategic enabler of universal health coverage and national health security. This requires not just contracting services, but also fostering genuine partnerships that integrate private sector expertise into national healthcare strategies.
Such collaboration can inform policy, streamline regulations and ensure that public investment in complementary infrastructure – from roads to digital networks – ampli es the effectiveness of these logistics lifelines. By leveraging the specialised capabilities, advanced technology and adaptive operational models of private logistics experts, public health entities can ensure life-saving medications and essential medical equipment reach every patient securely, ef ciently and with the utmost care, no matter the geographical or infrastructural challenge. This strategic alignment is the cornerstone of building truly resilient and accessible public healthcare for all.
Follow: Leon Bruwer www.linkedin.com/in/leon-bruwer-77204b52
Leon Bruwer
PARTNERING FOR PROGRESS
How PPPS and similar structured transactions can repurpose coal-powered stations through innovative solutions.
By IMRAAN ABDULLAH , director, and KELO SELEKA , senior associate, at Cliffe Dekker Hofmeyr’s Dispute Resolution practice and Government & State-Owned Entities sector
South Africa is confronted with rising public expectations to modernise public systems to improve service delivery, ef ciency and accessibility in a digitally advancing and interconnected global economy. This, at a time when scal constraints are also rising. To try to meet these demands, South Africa must adopt new and unique development approaches for projects undertaken within its borders, particularly in relation to how public entities partner with the private sector to deliver critical infrastructure. In this context, public-private partnerships (PPPs) have re-emerged as a strategic and innovative solution to South Africa’s scal and developmental challenges.
A key advantage of PPPs lies in their innovative nancing models, where private sector investment funds projects that are needed to improve service delivery. This not only reduces the burden on the scus, but also demonstrates how innovative measures can unlock new sources of capital for public bene t. Various PPP projects have already proven their worth in sectors such as transport and energy by providing innovative nancial models that have the potential to reduce the direct reliance on public funds.
UNLOCKING AND SHOWCASING INNOVATION
However, the value of PPPs goes beyond innovative funding solutions. They offer a platform for the private sector to showcase
innovation through their technical solutions. Through PPPs, public entities can tap into advanced digital tools, smart systems and next-generation technologies that have the potential to improve ef ciency and accessibility in service delivery. This is especially important for sectors such as energy, water and transport, where legacy systems require modernisation and/ or adaptation to new environmental and technological standards. This need for innovation is starkly illustrated by the challenge facing South Africa’s energy sector. The country relies heavily on ageing, carbon-intensive infrastructure that requires a massive transition towards cleaner, more sustainable technologies. This necessary shift, however, poses a signi cant risk of economic disruption and job losses in regions historically dependent on traditional energy production. This national challenge also presents a profound opportunity: to repurpose vast legacy assets and spearhead large-scale redevelopment. Successfully managing this transition requires a model that can mobilise immense capital and cutting-edge technical solutions far beyond the scope of the public scus.
A POWERFUL TOOL
infrastructure redevelopment, the public sector contributes its existing assets, such as grid connections and land, while the private partner brings the necessary capital, specialised technology and longterm operational expertise. This structure creates a symbiotic relationship of shared risk and reward. It provides the ideal framework to attract the substantial private investment needed to transform legacy infrastructure, ensuring these complex projects are nancially viable while advancing national goals like energy security and a just economic transition. While PPPs are not a guaranteed solution, they offer a powerful tool within the South African legislative framework for attracting private investment and unlocking innovation. PPPS provide a mechanism for private parties to use their technical expertise to come up with innovative ways for transforming these legacy assets, while advancing both energy security and the just transition. This approach aligns well with the goals of South Africa’s commitments for a just energy transition, which requires protection workers and the creation of jobs during the transition to a low-carbon economy.
To meet this challenge, South Africa must move beyond traditional procurement, where the state simply contracts a private company for a de ned task. Instead, the situation calls for genuine PPPs. In a true PPP model for
Imraan Abdullah
Kelo Seleka
Integrated Facilities Management
Revolutionising retail with refill innovation
In the bustling township of Diepsloot, a retail revolution is underway with an automated refill store offering a new way for consumers to access essential products. This initiative is supported by the DEPARTMENT OF SCIENCE, TECHNOLOGY AND INNOVATION
Launched in May 2025 at Chuma Mall, Skubu is rede ning how communities access everyday essentials. More than just a shop, it’s a bold step toward sustainable, affordable living.
Founded by Ebenhaezer de Jongh, CEO of Sonke, the start-up behind automated re ll stations, this innovative venture was born with the aim of creating a positive impact in underserved communities while championing environmental sustainability.
The launch event drew attention not only for its fresh approach to retail, but also for its strong backing through the Circular Economy Demonstration Fund, supported by the Department of Science, Technology and Innovation (DSTI) and implemented by the Council for Scienti c and Industrial Research. The initiative aims to scale proven circular economy solutions across South Africa and Skubu is leading the charge.
SAVINGS FOR CONSUMERS AND LANDFILLS
Automated re ll stations in the Skubu store enable customers to dispense products such as cooking oil, rice, maize meal, sugar, cake our, Unilever liquid products and even water directly into reusable containers. The result? Up to 50 per cent savings for consumers and a dramatic reduction in single-use plastic waste – up to 100 per cent elimination.
De Jongh emphasised that affordability isn’t just a marketing strategy; it’s the core of Skubu’s mission. “We want people to buy what they need when they need it without breaking the bank or harming the planet,” he said at the launch.
TURNING TEETHING PROBLEMS INTO OPPORTUNITY
However, the journey to success wasn’t smooth. De Jongh recalls how the Sonke team imported a machine from China early in their journey only for it to break down shortly thereafter. Undeterred, they took matters into their own hands and built their rst re ll station from scratch.
Their initial test run selling nonbranded cleaning products in Tembisa faced stiff competition from corporate giants such as Unilever. Instead of ghting the tide, de Jongh turned it into an opportunity and partnered with Unilever to expand product offerings and reach.
Then the Russia – Ukraine con ict disrupted global oil supplies, driving up prices for cooking oil. Seizing the moment, Sonke launched SunQueen, its own brand of cooking oil, via re ll stations.
Today, Sonke Retail has over 100 re ll stations operating across South Africa, Zimbabwe and Nigeria, making it the world’s largest automated re ll company. Partners such as the Manzi beverage company have joined the movement, helping to scale the model regionally. Skubu isn’t just changing business models, it’s changing lives. Zosuliwe Mangahi, a customer from Diepsloot, says the store has helped her save money on essentials such as maize meal and sugar. “I’ve already saved some money, and I’m going to save more so I can use the extra for other things around the house,” she explains.
Another customer, Happiness Buthelezi, says the lower prices on cleaning products are especially bene cial for maintaining hygiene in the community. “It helps us stay clean and healthy,” she adds. Sonke has created 15 full-time jobs and generated R12-million in consumer savings over the past three years.
Dr Mmboneni Muofhe, deputy directorgeneral: socioeconomic innovation partnerships at the DSTI, praised Skubu’s collaborative spirit and tangible impact.
“If we could replicate projects like this across the country, we’d be looking at a very different South Africa,” he said at the launch.
With its blend of innovation, affordability and sustainability, Skubu is more than just a store; it’s a blueprint for the future of inclusive, eco-conscious retail.
PPPs AND INFRASTRUCTURE DELIVERY
There is no doubt that there is an urgent, if not desperate, need for South Africa to upscale its infrastructure delivery programme. This article aims to address how public-private partnerships (PPPs) can assist in this regard, the key functions to be performed by the private sector and how the public sector can ensure suitable conditions for infrastructure delivery, through legislative and policy reforms. Over the next three years, R1.03-trillion is intended to be spent on public infrastructure by state-owned companies, national and provincial government and local governments. Nearly 40 per cent of this amount will be allocated to the construction and refurbishment of the national road infrastructure. This represents a signi cant budget allocation for road infrastructure, given the widely reported issues and fatalities resulting from poor road conditions.
IMPROVING INFRASTRUCTURE PROCUREMENT
Infrastructure procurement in South Africa is riddled with allegations and reports related to the mismanagement of public funds and, at times, a lack of experience in the procurement of certain projects. PPPs are a preferred procurement methodology, given the high standards applicable to public fund spending, the bene t of experience and expertise the private sector brings to infrastructure procurement and, of course, the allocation of risks in major construction projects.
PPPs have, in the past, been known for their lengthy approval processes as contained in Treasury Regulation 16 of the
The role of public-private partnerships in turning South Africa into a construction site.
By KHAYA MANTENGU , director – Dispute Resolution and Construction & Engineering sector at Cliffe Dekker Hofmeyr
Public Finance Management Act 1 of 1999. Since June 2025, these lengthy processes have been changed. All PPP projects below R2-billion are now exempt from the previous four-tier approvals previously contained in Regulation 16. Further advancements currently being developed include guidelines that will permit the private sector to approach government with unsolicited infrastructure proposals. Lastly, this year will see the introduction of legislation aimed at introducing PPPs at municipal level, which is aimed at improving South Africa’s overall infrastructure plans. The latter will be a key driver, especially in social infrastructure, as it will allow municipalities to respond more ef ciently to their local communities.
COMMUNITY INVOLVEMENT REQUIRED
The inef ciencies in infrastructure delivery due to the construction ma a continue to threaten South Africa’s infrastructure goals. Given that the concession period is typically 20 years in PPPs, the role players in the envisaged PPPs will need to devise plans and policies that will see the involvement of communities, from project inception through the entire duration of the concession period. Local community involvement will not only ensure there are no delays to the infrastructure projects resulting from community unrest, but also increase employment in the areas where these infrastructure projects will be executed. The need for private sector involvement in the execution and delivery of much-needed infrastructure in South Africa cannot be underscored enough. Several key aspects will need to be addressed. Firstly, a gradual move away from traditional construction methods to increased use of modern technology to reduce construction periods. Secondly, impactful amendments and application to South Africa’s procurement legislation and policies. Lastly, increased involvement of local communities in ensuring the country is a construction site over the next three years.
An amount of R25-billion is allocated for infrastructure delivery through PPPs. This allocation and the legislative and policy changes referred to above are a signi cant shift and an important indication of the value the South African government places on PPPs.
THE NEED FOR PRIVATE SECTOR INVOLVEMENT
Khaya Mantengu
PRODUCT INNOVATION IN FINANCING
Global capital is ready, and South Africa now has bankable projects. ZEN DLAMINI , executive head: sovereign and public sector, client coverage, corporate and investment banking at Standard Bank, shares how innovative financing is finally unlocking the nation’s massive infrastructure potential
Unlocking South Africa’s full economic potential hinges on our ability to address a signi cant infrastructure de cit, a challenge requiring both ambitious vision and pragmatic execution. The most effective catalyst for bridging this gap is the powerful synergy of public-private partnerships (PPPs). The scale of the opportunity is immense; the government estimates that meeting South Africa’s infrastructure needs by 2030 will require approximately R3.2-trillion ($168-billion) in funding, with the pipeline for Strategic Integrated Projects (SIPs) alone growing to R550-billion. SIPs are speci c nationally signi cant infrastructure projects aimed at improving service delivery, creating employment and ultimately spurring South Africa’s economic growth.
Given the constraints on the national scus, this ambition cannot be realised by the public sector alone. It requires a dynamic collaboration with private capital, expertise and innovation. For years, a common misconception was that South Africa lacked the necessary investment capital. Conversations with global investors, from the Gulf Corporation Council to Japan, tell a different story. The capital is available and eager; the historical challenge was a lack of well-structured, bankable projects.
Thankfully, this landscape is undergoing a profound and positive transformation.
A NEW ERA OF REGULATORY EFFICIENCY AND PROJECT READINESS
A signi cant catalyst for this change has been a pragmatic regulatory overhaul. The National Treasury has streamlined the PPP process by creating a dual-pathway system. High-value, complex projects are rightfully given rigorous oversight, while smaller projects – those under R2-billion – are now subject to a simpli ed, faster approval process. This reform has cut through prohibitive red tape, signalling to the market that South Africa is serious about implementation and is open for business.
This new momentum is being championed by entities like Infrastructure South Africa, which is packaging and showcasing viable projects to local and international investors. We are moving from a theoretical discussion about potential to a practical showcase of concrete opportunities in mission-critical sectors: energy, water, transportation (road, rail and ports) and digital communications.
THE INNOVATIVE FINANCIAL TOOLBOX
To fund this new wave of projects, we must move beyond traditional nancing. The complexity and sheer scale of our infrastructure needs demand a sophisticated and innovative nancial toolbox. A cornerstone of the modern approach is blended nance. By strategically combining public funds with private capital, we can effectively derisk projects and make them more attractive to a wider pool of investors. A landmark transaction we concluded in 2023 with the Development Bank of Southern Africa successfully crowded in banks from the United Arab Emirates, demonstrating a powerful proof-of-concept.
Complementing this is the growing importance of green and sustainable nance. With energy and water security at the top of our national agenda, instruments like green bonds and sustainability-linked loans are no longer niche products; they are essential tools for channelling the global appetite for environmental, social and governancealigned investments directly into projects that matter most.
Finally, true innovation lies in creating bespoke credit solutions. This means structuring deals that balance the long-term horizons of infrastructure with the risk and return expectations of diverse investors, from development nance institutions to commercial banks and institutional funds.
WE ARE MOVING FROM A THEORETICAL DISCUSSION ABOUT POTENTIAL TO A PRACTICAL SHOWCASE OF CONCRETE OPPORTUNITIES IN MISSION-CRITICAL SECTORS.
FROM AMBITION TO ACTION
This progress is not merely theoretical. We are seeing tangible results on the ground. The recent Request for Proposals for six of our critical border posts is a live example of the government’s commitment to upgrading vital trade logistics through PPPs. Similarly, the upcoming renewal of the Gautrain concession – a benchmark for successful PPPs in Africa – signals continued investment in our public transport networks. These projects demonstrate a clear pipeline and offer real opportunities for consortiums of local and international players to deliver world-class infrastructure.
The path ahead is clear. The convergence of a supportive regulatory environment, a robust pipeline of bankable projects and innovative nancing models has created an unprecedented opportunity. For investors, it is a chance to participate in a growth story with tangible impact. For South Africa, it is our moment to build a resilient and prosperous future for generations to come.
Follow: Zen Dlamini www.linkedin.com/in/zen-dlamini-45583727
