Minister Maropene Ramokgopa: Federated Employers Mutual Assurance Company Construction Industry Business Breakfast

Programme Director, Ms Sakina Kamwendo,
Chairperson of the FEM Board, Mr John Barrow,
CEO of FEM, Mr Nazeer Hoosen,
Members of the Board and the Executive Management of FEM,
The Second Deputy President of the Congress of South African Trade Unions (Cosatu), Mr Duncan Luvuno,
Deputy Director at the Bureau for Economic Research (BER), Mr Craig Lemboe,
Distinguished speakers and panelists,
Distinguished guests and partners in sustainable development,
Ladies and Gentlemen,
Good morning!

It is an honour to speak to you this morning, as the various stakeholders driving the growth and development of South Africa’s construction industry. Amongst us, we have representatives of the construction industry in the private sector, government officials, labour, civil society, academia, and media representatives. This gives expression to the all-of-society approach that the South African Government is advancing to accelerate development in the country, and to build a nation that works for all.

This gathering also defines what government seeks to do with the National Dialogue, of bringing together the entire South African society, across our diverse fields and cultures, to build a thriving and inclusive economy, which creates jobs and opportunities.

Last month, the Sustainable Infrastructure Development Symposium South Africa 2025 took place in Cape Town, and reaffirmed the crucial role of infrastructure in the country’s development. There is certainly momentum towards making South Africa a “construction site”, and realising the vision of His Excellency President Cyril Ramaphosa, of infrastructure being a “flywheel for development” in the country.

Ladies and Gentlemen,
Infrastructure investment is a catalyst for inclusive growth and development. The Medium-Term Development Plan (MTDP) 2024 – 2029, the five-year blueprint guiding the work of the 7th administration of the South African Government, outlines the country’s strategic priorities to drive inclusive growth and job creation, reduce poverty and tackle the high cost of living, and to build a capable, ethical and developmental state. At the heart of these priorities is the need for well-planned, targeted and efficiently delivered infrastructure across all spheres of government.

The MTDP commits to deliver on the established infrastructure investment pipeline, while also allowing flexibility in settling short-term and medium-term delivery targets. This is important to the realization of the National Development Plan (NDP) Vision 2030 goal of raising investment to 30 percent of the GDP. This includes increasing public infrastructure spending to at least 10 percent of the GDP.

Increasing public infrastructure spending requires stimulating private sector investment through public-private partnerships. This investment will enable industrialisation and supporting job creation in the country. This will go a long way towards enabling infrastructure development in the country to address inequalities and stimulate inclusive growth through improving access to energy, water, transport, logistics, and digital services for businesses and communities. Infrastructure development must enable shared prosperity in our communities.

Ladies and Gentlemen,
We are working hard to ensure that all government departments and spheres are aligned to the vision and implementation of the MTDP. This includes alignment and collective action in combating crime, which is a core focus of the MTDP, and particularly affects the construction sector. Government is working hard with all other stakeholders to put an end to what has been referred to as the “construction mafia” who intimidate and harass construction companies and workers, which often leads to delays in completion of projects as well as increased costs.

Operating at the Centre of Government, the Department of Planning, Monitoring and Evaluation (DPME), plays an important role in coordinating planning processes across all of government. This included coordinating the development and finalisation of the MTDP. The DPME also provides guidance and support to government institutions in finalizing their strategic plans and annual performance plans, which we are ensuring align to the MTDP.

The MTDP prioritises crucial infrastructure interventions. These include:

• Reducing the infrastructure investment gap with a government investment commitment exceeding 943.8 billion rand over the medium term. Public infrastructure spending is now at 3.8 percent of GDP compared to the NDP target of 10 percent.
• Implementing the Energy Action Plan to end load-shedding, and ensure long-term energy security by adding 40 000 megawatts (MW) of generation capacity, and raising the Energy Availability Factor (EAF) to at least 80%. The key interventions of this plan include building over 10 000 kilometres of electricity transmission infrastructure by 2030 and driving reforms in the energy sector.
• Completing bulk raw water infrastructure projects across the country and implementing regulatory reforms to ensure reliable water supply and effective wastewater management.
• Implementing the Freight Logistics Roadmap to enable private investment, improve efficiency at ports and rail, and shift bulk freight from road to rail. This also includes restoring all passenger rail corridors and rolling out Integrated Public Transport Networks (IPTNs) in at least 10 cities, while improving the conditions of rural and municipal road.
• Achieving universal internet access, prioritising public schools, improving internet speed and data affordability, and growing the e-commerce industry.
• Unlocking municipal-level investment for resilient and inclusive development, closing infrastructure coverage gaps, and improving maintenance, service quality, reliability and efficiency. This includes reducing losses like water leaks, illegal connections to achieve resilient and inclusive development.

The second phase of Operation Vulindlela’s structural reforms were introduced by the President last month, and aim to build on the success thus far in unlocking the country’s economic potential and competitiveness.

This phase of Operation Vulindlela focuses particularly on local government, which must improve the quality and reliability of basic services to increase investment, to enable cities, towns and rural regions to foster dynamic business and accelerate development.

Ladies and Gentlemen,
South Africa’s national development is inextricably linked to that of the African continent. Therefore, infrastructure must drive regional integration, promote trade, and support industrialisation across Africa.

We are advancing collaboration and partnership in accelerating regional infrastructure projects through the African Union (AU)’s Presidential Infrastructure Championing Initiative (PICI), which His Excellency President Ramaphosa leads.  We should also collectively promote infrastructure development as the key to trade and investment through the African Continental Free Trade Area (AfCFTA).

Ladies and Gentlemen,
Partnerships are critical to mobilising resources, and must lead to cooperation agreements that accelerate the development and implementation of key infrastructure projects.

As Government, we are actively and continuously engaging the private sector, research and academic institutions, civil society, labour, and all stakeholders to deepen collaboration to accelerate development, to enhance the state’s monitoring and evaluation systems, and to ensure impactful governance.

These partnerships put us in a better position to finance for development, enhance service delivery, and ensure that we foster inclusive growth in the country and leave no one behind.

I applaud FEM for bringing us all together this morning, as we collectively drive the construction sector forward to meet our nation’s infrastructure development goals. May we continue this collaborative approach in addressing persistent challenges, and in ushering a period of great promise for our country, where infrastructure development leads to substantive and inclusive development in our country.

I thank you!

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