THANDIWE LEGWAILA | Infrastructure demand must be turned into infrastructure delivery

The recent Sustainable Infrastructure Development Symposium South Africa (Sidssa) 2026 sharpened an important national message: South Africa understands where its infrastructure constraints are most acute, where demand is growing, and what is required to convert that demand into projects that attract investment and deliver measurable outcomes.

Reliable water and sanitation, affordable electricity, transport and logistics, and functioning municipal services are not merely policy concerns. Together, they play a critical role in the country’s ability to produce goods and services, move them to various markets domestically and offshore, and connect businesses to customers.

Infrastructure affects individuals, households and businesses. In the multi-sector approach to infrastructure development that was repeatedly discussed at Sidssa 2026, banks and capital markets are not merely providers of capital but key catalysts that can unlock the investment, innovation and scale required to drive South Africa’s competitiveness and growth.

In energy, South Africa has demonstrated that sustained reform and disciplined execution can produce tangible results. Eskom’s generation recovery plan has delivered a marked improvement in system performance. By July 2026, the country had recorded 420 consecutive days without load-shedding.

Eskom reported an energy availability factor of 64.82%, representing a significant improvement and the recovery of approximately 5GW of generation capacity compared to 2023. These gains have strengthened confidence in the power system and shifted attention towards the next phase of investment: expanding transmission and distribution infrastructure and new energy development to deliver affordable electricity.

This is encouraging because infrastructure delivery is ultimately not measured by the size of a pipeline but by the assets that are financed, built and maintained.

The government’s disciplined sequencing of the energy strategy — articulated in the energy action plan — coupled with unlocking private generation and enabling new generation and storage technologies across a diversified mix — has shown what is possible when policy clarity, bankable projects and private capital come together to deliver affordable electricity.

The water infrastructure crisis has arguably become a more pressing economic growth challenge. Annual non-revenue water is as high as 47%, estimated at R26bn in lost revenues. This is to say that almost half of treated water is lost before it can reach ordinary people and businesses who depend on water in the country.

While other factors such as changing weather patterns deepen the crisis, municipal infrastructure constraints, ageing networks and operational inefficiencies continue to compromise service delivery and economic productivity.

The implications extend far beyond municipal finances. Water security underpins industrial activity, mining production, agricultural output, public health and urban development. Addressing these constraints will require sustained investment in both new infrastructure and consistent refurbishment of existing assets.

Equally important, the public institutions responsible for bringing projects to market are becoming more focused on the critical work of preparation, co-ordination and execution. This is encouraging because infrastructure delivery is ultimately not measured by the size of a pipeline but by the assets that are financed, built and maintained.

Infrastructure South Africa (ISA) must be lauded for the progress that has been made in this regard. Infrastructure projects frequently encounter obstacles long before financing discussions begin. Weak project preparation, fragmented planning processes, regulatory bottlenecks and capacity constraints often prevent projects from reaching financial close.

This is a classic market failure. The economic need exists, and capital may be available, yet projects struggle to reach investment readiness. ISA is helping to address these gaps through project preparation support, stakeholder co-ordination and efforts to strengthen the national project pipeline.

One example highlighted during Sidssa was the Matjhabeng local municipality, where approximately R1.8m invested in preparing a non-revenue water programme helped unlock an R800m debt-financing facility from the Development Bank of Southern Africa.

These examples illustrate the power of effective project preparation. Relatively modest investments in technical development can unlock substantially larger pools of infrastructure capital.

The private sector must meet this progress with equal energy. For the financial services sector specifically, the message from investors and funders was equally clear: capital is ready. Capital markets will play a particularly important role in the next phase of infrastructure delivery.

While banks are often the starting point of infrastructure finance, providing origination, structuring expertise and underwriting capacity, capital markets provide the depth and scale required to finance long-term infrastructure assets.

Between commercial banks, development finance institutions, pension funds, insurers and international investors, South Africa does not lack institutions capable of funding infrastructure. The challenge is not the availability of capital but sufficiently prepared, appropriately structured and fit-for-purpose projects.

Mobilising domestic and international institutional capital will be essential if South Africa is to accelerate infrastructure delivery and close its investment gap. The private sector stands ready to participate. Standard Bank is already supporting South Africa’s border post redevelopment programme, partnering with four of the six preferred bidders responsible for the upgrade of Beitbridge, Kopfontein, Oshoek and Ficksburg ports of entry.

One of the country’s most significant logistics reform initiatives, this programme will strengthen regional trade and economic integration while highlighting that when projects are transparent, investable and well structured, capital responds. Capital providers and investors are ready and excited to mobilise capital to support infrastructure development across energy, water, transport, logistics and digital infrastructure.

Minister of public works & infrastructure Dean Macpherson reported that South Africa’s infrastructure pipeline now comprises 81 strategic integrated projects, made up of 263 individual projects with an estimated value approaching R2-trillion.

Over the past 18 months, 37 projects valued at approximately R69bn have been completed, while 82 projects worth R502.7bn are under construction. This demonstrates both the scale of South Africa’s infrastructure opportunity and the growing momentum behind implementation.

Perhaps the most important conclusion from Sidssa 2026 is that South Africa’s infrastructure challenge is increasingly becoming a project-readiness challenge rather than a capital challenge. Financial institutions and capital markets stand ready to finance viable opportunities.

The task now is to increase the number of projects that are technically sound, commercially viable, appropriately governed and ready for implementation. The opportunity is significant. The focus now must be on turning infrastructure demand into infrastructure delivery. That is how infrastructure becomes a platform for growth, competitiveness and shared prosperity.

• Legwaila is head of client coverage South Africa at Standard Bank Corporate & Investment Banking