Budget Speech 2025

This budget reflects that understanding. Allocations towards capital payments are the fastestgrowing area of spending by economic classification.

Public infrastructure spending over the next three years will amount to more than R1 trillion.

The spending will focus on three sectors:

- R402 billion for transport and logistics,

- R219.2 billion for energy infrastructure, and

- R156.3 billion for water and sanitation.

In transport, the South African National Roads Agency (SANRAL) will spend R100 billion over the medium term to keep the national road network in good condition.

Provincial roads departments will reseal over 16,000 lane-kilometres of roads in their areas of authority.

The Passenger Rail Agency of South Africa (PRASA) is making steady progress to rebuild infrastructure to provide affordable commuter rail services.

To sustain this progress, we have provisionally allocated an additional R19.2 billion over the medium term for critical signalling upgrades.

This will enable commuters from areas like Mamelodi, Kwa-Mashu, Motherwell and Khayelitsha to catch a train every 10 minutes, to get to and from work and significantly reduce the money that low-income households spend on transport.

The allocation will also allow PRASA to maximise the potential of the 241 new trains delivered through the rolling stock renewal programme.

Despite the progress made, PRASA’s procurement system needs strengthening.

The management of the entity have already instituting measures to strengthen their procurement weaknesses. This includes getting support from the National Treasury to build capacity and mitigate risks and undertaking live audits for large procurement projects.

In water, we are investing in several large-scale dam projects that are ramping up or entering construction.

The Mkhomazi Project is expected to commence construction in November 2027, transferring water to the Mngeni Water Supply System. This will increase the total capacity of the system to 5 million households in eThekwini and 4 district municipalities in KwaZulu Natal.

The Berg River-Voëlvlei Augmentation Scheme is expected to start in July 2026. The project will improve the Western Cape’s Water Supply System, improving regional water security while reliably supplying domestic, agricultural and industrial water users.

To further accelerate infrastructure delivery and effectiveness, we are continuing reforms to facilitate greater private sector participation, capital budgeting reform and alternative infrastructure financing.