South Africa

South Africa’s R307 billion headache

South Africa, which already faces a heavy bill to upgrade its port, rail and electricity infrastructure, needs R307 billion to repair and improve its sprawling national road system.

Transport Minister Barbara Creecy said in a presentation to lawmakers in Cape Town on Tuesday that the South African National Roads Agency requires design and construction work on 1,437 projects.

Repair work by the company, which manages 4% of the nation’s 750,000-kilometer road network, has been dogged by delays caused by challenges ranging from contractors going out of business to extortion by organized crime.

Firms brought in to complete the work when a contractor quit due to demands by criminals have included China Communications Construction Co.

South Africa’s road network is the 11th-longest in the world, while Sanral’s small portion of that carries 70% of the nation’s long-distance freight. The costly outlook reflects similar projections for other state-owned companies.

Power utility Eskom faces a R390 billion upgrade of the electricity grid to add more generation from clean-energy sources. Transnet needs to spend billions to improve signalling systems and repair trains that are inoperable without spare parts.

The presentation showed that provincial road projects have design and construction budgets averaging about R17 billion annually through 2027, along with a more extensive list of incomplete, abandoned, and delayed projects.

Creecy recommended support for the transport department “through leadership reform within the police to reinforce governance structure” and strengthening project monitoring.

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