R1‑Trillion Infrastructure Plan must anchor SA’s new Industrial era, Ramaphosa says

President Cyril Ramaphosa emphasized that South Africa's R1‑trillion infrastructure programme serves as the bedrock of a new industrial era, cautioning against allowing its metals and engineering sectors to stagnate. Speaking at the SEIFSA Presidential Business Breakfast, Ramaphosa underscored the strategic importance of the country's industrial capability, comprising over 1,300 member companies.

He highlighted that the infrastructure investment represents more than a mere construction program but rather an industrial strategy.

Ramaphosa stressed that the nation stands at a historic juncture to revamp its manufacturing base, noting that each transmission line, railway, port expansion, and water system should augment the economy's productive capacity. He urged the utilization of the infrastructure program to foster factory development, skill enhancement, supply chain strengthening, support for emerging industrialists, and job creation.

Steel, engineering, and manufacturing were identified by Ramaphosa as the economic backbone, vital for generating skills, driving innovation, driving exports, creating productive employment, and sustaining thousands of businesses. Electricity reform was highlighted as critical, with warnings that high tariffs jeopardize energy-intensive industries.

The next phase of reform would focus on affordability, with a competitive electricity market anticipated to commence next year. Ramaphosa projected a substantial expansion of the transmission grid over the next decade, estimating the need for approximately 14,000 kilometers of new transmission lines, alongside significant investments in substations and transformation capacity, positioning it as a monumental industrial undertaking.

The President stressed that the energy transition must coincide with a technology transition, urging South Africa not to solely import technologies for the new energy economy. Instead, where feasible, technologies essential for the new energy landscape should be manufactured domestically. This includes opportunities in renewable energy components, battery manufacturing, and green hydrogen production.

Ramaphosa proposed leveraging procurement mechanisms to facilitate technology transfer, research and development, and supplier development, even in cases of unavoidable imports. He also appealed for industry to invest in skills and apprenticeships, cautioning against a future where an expanded transmission grid coexists with a weakened domestic manufacturing industry.

Ramaphosa concluded by advocating for unity among government, business, and labor, asserting that, collectively, South Africa can again become a nation that manufactures its own equipment, transforms minerals into higher-value products, and generates millions of productive jobs.