Responding to the MTBPS tabled by Finance Minister Enoch Godongwana on Wednesday, CESA CEO Chris Campbell welcomed measures to strengthen fiscal stability and improve infrastructure delivery. However, he cautioned that these interventions would have limited impact unless funding translates into properly planned, completed and functional projects.
“Debt stabilisation, the operationalisation of the Infrastructure Finance and Implementation Support Agency, the continued scaling of the Budget Facility for Infrastructure, progress on the Credit Guarantee Vehicle and the push to expand public-private partnerships in the municipal space are all steps in the right direction.
“Capital spending is now the fastest-growing component of the Budget. That is exactly where resources need to be directed if South Africa is to rebuild its economic capacity and ease the pressure on households and firms that are struggling under tough conditions,” Campbell said.
Campbell noted, however, that these mechanisms must be supported by capable institutions, credible project pipelines and effective implementation. “The real test is whether infrastructure funding results in projects that are properly planned, completed and delivering the services communities and businesses need. Without effective implementation, even well-intentioned funding commitments will fall short of their potential,” Campbell said.
The performance of infrastructure conditional grants to provinces and municipalities illustrates this challenge. Between 2017/18 and 2023/24, national government transferred R887 billion through these grants. The review announced in the MTBPS confirmed what consulting engineers have experienced on the ground for years: while most of the money is spent, a significant proportion of projects are delayed, incomplete or fail to deliver the intended services.
For CESA, explains Campbell, this gap has implications not only for service delivery but also for the sustainability of the consulting engineering industry. “Poor project preparation, delays and weak implementation disrupt the pipeline of work available to professional firms, with tenders cancelled or extended, projects stalled and payments delayed.”
“These failures have a direct and damaging impact on our member firms,” Campbell said. “Unpredictable project pipelines and delayed payments place pressure on cash flow, threaten employment and make it more difficult to retain the technical expertise South Africa needs to deliver infrastructure.”
He stressed: “CESA believes that improving infrastructure delivery requires more than increased expenditure. Municipalities need stronger technical capacity, projects must be adequately prepared before procurement begins, and procurement processes must recognise the value of professional engineering expertise. Greater accountability is also needed to ensure that funding delivers the intended outcomes.”
“The new Municipal Public Private Partnership Regulations and the wider rollout of smart meters are constructive. But until municipalities can reliably convert grant funding into well-prepared, properly supervised projects, both service delivery and the consulting engineering sector will continue be impacted,” he said.
CESA will continue to advocate for policies and practices that strengthen infrastructure delivery and sustain the professional capacity required to support it.
“Fiscal stability and infrastructure investment are important foundations for economic growth. But their value will ultimately be measured by the infrastructure delivered, the services improved and the economic opportunities created. South Africa must ensure that funding translates into results,” Campbell concluded.
