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Picture: 123RF/THAMKC
Picture: 123RF/THAMKC

Almost a quarter of SA’s R340bn worth of strategic infrastructure projects have been delayed or put on hold, according to Standard Bank.

The government has officially announced 62 energy, water, sanitation and other projects, known as SIPs. While eight have been completed and 40 are under way, 14 are behind schedule, the bank said in a May 25 report that monitors their progress.

The rollout of one project — a plan worth billions of dollars to build 2,000MW of new power-generation as quickly as possible — has been held up by court cases and Eskom, the bank said. The delay comes as SA heads for a record year of disruptive power outages because the utility is unable to meet demand. 

Increased infrastructure investment underpins plans unveiled by President Cyril Ramaphosa in October 2020 to boost the country’s economic growth rate, after the biggest contraction in a century that year. Investment as a percentage of SA’s GDP has been in decline since 2016 and was projected to hit a record low of 12.2% in 2021, according to International Monetary Fund data published in February.

Other SIPs have been put on hold due to funding gaps, according to the bank. Similarly, a R4bn initiative for The SA National Space Agency to develop a Space Infrastructure Hub has made no progress, it said.   

More stories like this are available on bloomberg.com

Bloomberg

Picture: BLOOMBERG.
Picture: BLOOMBERG.
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