South Africa’s Infrastructure future depends on fixing bankability, not capital allocation

Why infrastructure you may ask? Because as President Ramaphosa noted at the recently held the South Africa Infrastructure Investment Summit, “infrastructure is the next great frontier of investment”. I had the good fortune of participating at the Summit, as part of a seminal panel discussion that examined the importance of the partnerships to solve funding blockages.  

President Ramaphosa also noted at the same summit that, “private capital and expertise is critical to Africa’s infrastructure progress”. We share wholeheartedly in this assessment. 

According to a joint World Bank and the Development Bank of Southern Africa report funding infrastructure, South Africa requires R13 trillion to modernise transport and logistics systems. This is an existential challenge, one that cannot be met by the public sector alone as has been widely noted by the President and ministers in his cabinet. 

In approaching this mammoth task, the governmental rhetoric has been matched by important steps, taken to reform key sectors of the economy. 

Policy initiatives such as Operation Vulindlela, the National Logistics Crisis Centre (NLCC) and the forward-thinking Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) have undoubtedly accelerated progress and added substantial momentum to match the government’s infrastructure investment ambitions. These initiatives collectively have served to increase traction in key sectors. A lot has been done but still more needs to be done. 

The country has an ambitious new infrastructure investment target of R3 trillion, or US$180 billion, over the next five years announced at the Summit. 

This sounds daunting but South Africa’s infrastructure ambitions are not constrained by a lack of capital; they are adversely impacted by a lack of bankable opportunities. This distinction is critical. For years, the dominant narrative has been that unlocking infrastructure development requires more funding. But from a private sector perspective, capital is available and actively seeking long-term, stable investment opportunities. 

The real challenge lies in creating the conditions that make infrastructure projects investable at scale. Nowhere is this more evident than in the transport sector, which sits at the heart of economic growth, trade competitiveness, and industrial development. 

Encouragingly, recent reforms signal a shift in approach from state-led delivery toward the creation of a regulated investment ecosystem that is cognisant of different private sector players. However, to translate reform momentum into tangible investment flows, three priorities must be addressed with urgency: regulatory certainty, credible concession frameworks, and a systemic focus on bankability.

Regulatory certainty is essential 

The single most important factor in unlocking private sector participation is regulatory certainty. Infrastructure projects, particularly in transport require long-term capital commitments. Investors need certainty around pricing, access, risk allocation and governance to assess risk and allocate capital effectively.

Regulatory certainty is not merely a technical requirement; it is a signal of credibility. It tells investors that the rules of the game are clear, consistent, and enforceable. Without it, even the most well-intentioned infrastructure strategies will struggle to gain traction. The appointment of the Economic Transport Regulator is a critical reform, as independent oversight and enforcement of the regulations, will give investors further confidence to deploy capital. 

Bankability requires a systemic approach

Beyond regulation and concessions, the broader concept of bankability must be addressed at a systemic level. Infrastructure investment depends on the strength of the entire project ecosystem, from preparation to financing to execution. Ultimately, strengthening bankability also means recognising infrastructure as an interconnected system given the critical intermodal dependencies

From State asset to investment platform

South Africa stands at an important inflection point. The shift underway, from viewing infrastructure as a purely state-delivered public good to treating it as a regulated investment platform is both necessary and overdue. If government can sustain policy consistency, deepen reforms, and build execution credibility, the transport sector could become one of the most compelling infrastructure investment opportunities on the continent.

There is as much as a four times multiplier effect into the broader economy for every one rand of investment into network industry infrastructure. The prize of a more competitive economy, improved trade flows, and sustained long-term growth is significant. But, achieving it on a broader scale requires, amongst other things, a shift in mindset. The question is no longer whether capital is available. It is whether the system is ready to absorb it. 

Fixing bankability is not just a technical exercise; it is the gateway to unlocking South Africa’s infrastructure future. For our part, Standard Bank has a storied history of working closely with government to deliver game-changing infrastructure projects. It is in our DNA to support viable, bankable projects from conception to shovel-ready status with a keen eye on the future.  

It is a future which we are all deeply invested in, the country’s success is our success. With that in mind, we are all obliged to do all that we can to ensure that we invest wisely in building a country future generations can be proud of. 

Prepared by
Stephen Barnes, Head of Standard Bank Corporate & Investment Banking, South Africa