South African President Cyril Ramaphosa delivers the State of the Nation Address at a time of heightened scrutiny into South Africa’s infrastructure, particularly water and energy. With this heightened scrutiny, and many “in progress” and “not kept” measures from last year’s SONA, here is what the president said about infrastructure for the year 2026:

Infrastructure: The key to economic growth 

Ramaphosa characterises South Africa as a country with low growth and high unemployment. Linking these challenges to the broader infrastructure agenda, the Cabinet has approved a comprehensive implementation plan under the Medium Term Development Plan aimed at accelerating growth and advancing inclusion.

He says, “Through this plan, we are working to revive growth by creating the conditions for firms to invest by maintaining a clear and stable macroeconomic framework, investing in infrastructure that works, creating a conducive regulatory framework that supports growth and enables competition, and a focused and forward-looking industrial policy. The foundation of this plan is investment, particularly in public infrastructure, as well as labour-intensive growth sectors that are capable of future growth.”

There will be heightened focus on green and digital economies, as this is where South Africa identifies space for addressing youth unemployment.

The president adds, “Infrastructure is much more than an investment in brick, mortar, concrete and steel. It is an investment in jobs, productivity and growth. For many years, fixed investment has been declining. We are now changing that.”

The change will come in the form of R1 trillion investment over the next three years. He explains, “This is the largest allocation of its kind in our country’s history.”

The trillion rand is not enough on its own; it has to be unlocked and accounted for, which will be enabled by new regulations for public-private partnerships, something that South Africa has long been working towards. This also exists alongside relooking at funding models, reducing risk, and attracting investors to fast-track projects in energy, water, transport and digital infrastructure.

An example of this funding model is the launch of the first-ever infrastructure bond, which has been twice oversubscribed. This bond is a clear move towards market-driven solutions, an ideological shift away from direct state intervention, in the hopes of attracting investment, so far it has raised R11 billion, signalling interest in infrastructure development.

Another model that is being looked into is the tender process, which Ramaphosa says, “Causes delays.” To address this, he says, “To prevent undue delays in critical projects, we will establish specialised courts for commercial matters with dedicated judges and dedicated court rolls to ensure faster outcomes in matters that have a bearing on the economy and development.”

State infrastructure is still a top priority. Ramaphosa explains, “This year, we will begin the work to establish a professional State Property Company to transform the 88,000 buildings and 5 million hectares of land owned by the state into professionally managed engines of growth and development.”

The president explains that “Through Operation Vulindlela, we are working to transform the structure of our economy, to fix our infrastructure and make our electricity, water and logistics sectors more competitive and efficient.”

Water infrastructure

Water is a sore subject; the ongoing Johannesburg Water crisis, coupled with country-wide problems, delayed projects, and increasing demand, has brought water to the forefront of the conversation in South Africa. Ramaphosa acknowledges the frustration, going so far as to direct the Minister of the Department of Water and Sanitation, Pemmy Majodina, away from SONA to engage directly with the Johannesburg crisis.

Ageing infrastructure, poor planning, inadequate maintenance, and a failing municipal system are all name-checked, with the president adding, “There is no silver bullet to address this challenge, which has its roots in systemic failure and many years of neglect.”

To ensure long-term supply, he notes that new dams and upgrades to existing infrastructure will continue, with R156 billion in public funding for water and sanitation over the next three years. He adds, “The construction of the Lesotho Highlands Water Project and other large-scale projects like the Ntabelanga Dam, part of the Mzimvubu Water Project in the Eastern Cape, is advancing.”

The promised National Water Resource Infrastructure Agency is still being established, missing the February 2026 mark that was originally laid out, but Ramaphosa assures that it is “In the final stages of establishing” the agency, which will fast-track and monitor key water infrastructure in South Africa.

He goes on to acknowledge that the supply is not the issue, but the delivery of water, and the amended Water Services Bill will allow the national government to directly hold water service providers accountable for their performance, and crucially, “withdraw their license if they fail to deliver.”

The national government has already laid criminal charges against 56 municipalities that failed to meet their water obligations, and is moving to lay charges against municipal managers in their personal capacity for violating the National Water Act.

President Ramaphosa also addresses the issue of water revenue being funnelled into other purposes, a direct contributing factor to the Johannesburg water crisis, by allocating R54 billion in incentives for metros to reform their water, sanitation and electricity services. The hope is to ringfence water revenue and allow for water revenue to be reinvested into infrastructure.

Comparing water to energy, the president explains how the National Energy Crisis Committee enabled the end of load shedding, and a new National Water Crisis Committee is being formed to enable water service delivery in South Africa. This structure brings existing efforts under a single coordinated body to address the water challenges in South Africa.

Electricity and energy infrastructure

The Just Energy Transition and the calculated move away from overreliance on coal are another key infrastructure growth point. The president says, “Having put load shedding behind us, we must now transform our energy system to ensure long-term energy security.”

2026 sees the fruition of regulatory changes that aim to enable massive investment into renewable energy. The president says, “By 2030, more than 40% of our energy supply will come from cheap, clean, renewable energy sources.” An ambitious claim, given that coal still accounts for 83% of the country’s energy production.

International pledges to the Just Energy Transition Investment Plan now stand at approximately R250 billion. This is financing large-scale investment in manufacturing, infrastructure and skills.

The hope is that establishing a level playing field for competition will drive a competitive market and reduce the risks of relying on only one energy source.

While the private sector is entering the market, Eskom still plays a vital role in energy. The entity is being restructured into a fully-independant state owned transmission entity. This entity will have ownership and control of transmission assets and be responsible for operating the electricity market.

Ramaphosa adds, “Given the importance of this restructuring for the broader reform of the electricity sector, I have established a dedicated task team under the National Energy Crisis Committee to address various issues relating to the restructuring process, including clear timeframes for its phased implementation. It will report to me within three months.”

In addition to this, this year commences the first round of independent transmission projects to enable private investment in expanding our national grid.

While enabling the sector is crucial, there are historic problems to be addressed, and the president says, “We will work in each province to address transformer overloading, illegal connections and equipment failure to eradicate load reduction by next year. We are committed to the path that we have embarked on to modernise our energy system.”

Port and rail infrastructure

South Africa’s slow and often inefficient ports, coupled with the dying railway,s have been another barrier to economic growth, the president says, “We have begun to turn around the performance of our rail system and ports, so that our businesses can get their products to global markets.”

We have now enabled private rail operators to access our network, which will allow different rail companies to compete and move volumes from road to rail.

This is being done by allowing private rail operators to access the public network, which allows rail companies to compete and move logistics from road to rail.

In terms of rail transport, South Africa continues its preparations to introduce more high-speed rail in South Africa, covering routes such as Johannesburg to Musina and eThekwini to Johannesburg. The president adds, “Nearly 30 companies indicated their willingness to participate in high-speed rail corridors when we put out a request for information last year. We are preparing to send out a request for proposals, which will introduce a new era of long-distance rail travel in South Africa.”

To address ports, South Africa is initiating major public-private partnerships in the country’s port terminals through a concession model that preserves public ownership while mobilising private investment and technical skills. This is set for later in 2026.

Backing this up by way of example, Ramaphosa says, “Last month, we concluded a partnership with an international port operator to manage the Durban Pier 2 Container Terminal, the largest in our country. This partnership will result in new investment in equipment and infrastructure at the port and will bring it back to world-class standards.”

Municipalities

Drawing from the water crises, President Ramaphosa says that the “local government system is not working. A far-reaching overhaul is now underway to address the root causes of dysfunction in many municipalities. In many places, local government administrations are weak and governed by patronage rather than technical capacity and merit.”

In her most recent report on local government, the Auditor-General said local government is characterised by insufficient accountability, failing service delivery, poor financial management and governance, weak institutional capability and widespread instability.

Referring to the auditor-general’s report, Ramaphosa explains that local government is characterised by “insufficient accountability, failing service delivery, poor financial management and governance, weak institutional capability and widespread instability. The auditor-general says that arresting the decline of local government will require our collective action. We are now taking collective action.”

This action comes in the form of a revised white paper on local government, aiming to provide solutions for the functionality of local governments, reimaging how the local system works. He adds, “The current system is too complex and fragmented, expecting even small and weak municipalities to take on many responsibilities. We will propose fundamental changes that recognise the reality that some municipalities can take on more functions than others, and that we need a differentiated approach to municipal powers and responsibilities.”

This restructuring considers local and traditional leadership, community engagement, and shared problem-solving while ensuring senior government officials are correctly and suitably qualified.

Critically, echoing the interventions in water, “Where municipalities fail, we will strengthen the ability of national government to intervene more quickly and to direct corrective measures in the interests of serving our people better.”

Other key moments

Although not mentioned by name, the subtext is clear: Ramaphosa speaks to our time when “trade is used as coercion” in clear reference to the United States tariff policy and the pressure of Washington on South Africa over the last year. Although the tension between South Africa and the US has dampened some trade, South Africa’s agricultural export has reached a high of R15 billion despite the pressure.

Ramaphosa also notes that the biggest opportunities lie in green growth, by pivoting the economy to be a leading supplier of green products, South Africa grows its presence in the global market. He says, “We are expanding support for the manufacturing of green products for global markets, from fertiliser to jet fuel, chemicals to steel.”

Another important point is a 150% tax reduction on ‘new energy vehicle manufacturing’ set to take effect in March 2026. This will incentivise the local production of electric vehicles.

Ramaphosa also says,” The Industrial Development Corporation announced more than R300 million in funding for the Frontier Rare Earths Project in the Northern Cape.” This backs up the news that new gold, copper, rare earths, platinum and coal mines are being opened across the country.

In closing

President Ramaphosa closes off with a hopeful message, one long overdue in delivery, “we must build a state that works for the people. Above all, we must ensure that this rising tide lifts every South African. As the economy grows, it should bring into its fold those who have lived on its margins for decades.”