“The next five to 10 years will see South Africa continue to focus on redressing economic infrastructure backlogs and inadequacies with a view to stimulating growth and employment and reducing poverty and inequality,” says Dave Lewis, Technical Executive in the Integrated Infrastructure Services Sector at GIBB.

Lewis says the Presidential Infrastructure Coordinating Commission’s (PICC) National Development Plan, incorporating the Coordinated National Infrastructure Plan and its 18 Strategic Integrated Projects (SIPs), will inform much of what happens in the industry over the next few years.

“The policies and implementation plans that are developed will hopefully provide a clear indication of the targets, activities, outputs and milestones or deliverables needed to achieve the set goals. The success of these plans will depend on their successful implementation, which means policies need to be clear and there must be capacity to implement them. In addition, they need to be credible and stimulate investment,” says Lewis.

For the industry, this means finding ways to address procurement procedures and develop capacity in the public sector, while municipalities have the challenge of balancing operational and management costs of existing infrastructure, eradicating backlogs and providing new infrastructure.

Lewis says that aging infrastructure has not been adequately dealt with. “A historic lack of maintenance has resulted in deteriorating infrastructure, which needs to be addressed. In addition, government is committed to providing housing and basic services for disadvantaged communities,” he says.

Importantly, new infrastructure is required to enable the private sector to invest in the economy. “Balancing the three areas is challenging. While there has been some progress with backlogs, efforts need to be maintained. The 2010 World Cup stimulated investment in improved infrastructure, but this needs to continue,” says Lewis.

Within a global context, there is a strong focus on Africa and Lewis says South African firms face strong competition from developed countries. “Notably, several South African firms are being bought out by multinationals. This means stronger competition for the larger projects with firms being able to offer international expertise,” he adds.

Lewis says Transnet’s investment in rail infrastructure; Eskom’s new build programme (particularly renewable energy); provincial and local authorities; and Africa provide the greatest opportunities for firms such as GIBB.

“GIBB is well positioned to play a role in all these areas of development. It has a strong rail team and is currently working on Medupi as part of Eskom’s Panel B. In addition, the firm has an Africa Desk, which focuses on projects within the greater continent.”

Lewis concludes that while South Africa faces many challenges, with challenge comes opportunity. “According to a recent UK poll, South Africa is one of the top three tourist destinations worldwide. GIBB is positive about the country’s future and the wealth of opportunities it offers. We also know we need to be part of the solution in addressing the challenges.”