Minister Dean Macpherson: Public Works and Infrastructure Summit

Premier of the Gauteng, Mr. Panyaza Lesufi
Premier of Northern Cape, Dr Zamani Saul
Premier of the Northwest, Mr. Kagiso Mokgosi
MECs present here today,
Members of Parliament,
Members of Provincial Legislators,
Executive Mayors,
The Public Protector,
Representative from the Auditor-General of South Africa,
The Director-General of Public Works and Infrastructure,
Government Officials,
Chairpersons and CEOs of Public Entities,
Council for the Built Environment Council Members,
Captains of industry,

Ladies and Gentlemen,

It is a privilege to be gathered with you here today at this historic event – the inaugural Public Works and Infrastructure summit.

Indeed, today’s gathering is an important event as we work to improve infrastructure delivery.

It is in line with our commitment to expedite service delivery within the Department of Public Works & Infrastructure in order for us to turn South Africa into a construction site.

As I told the MEC at our MINMEC held in Polokwane, Limpopo, last week, now is the time to turn words into action.

We simply can no longer talk about our grand plans and visions but need to turn words into action.

For too long, we have been routinely doing the same thing, which hasn’t delivered meaningful results.

We need change; we need innovative approaches and fresh thinking to turbocharge our infrastructure delivery.  

South Africa is known to have great plans, but often lacks the follow-through required.

Today, we are bringing an end to that reputation.

Today, we are taking a concrete step to show people that they can judge our progress not through our words, but through our actions.

Therefore, in this room today, we have some of South Africa’s biggest infrastructure players, top industry experts and officials charged with infrastructure delivery, because we want to develop an implementable action plan.

Their presence here today shows how serious we take the subject matter at hand.  

South African communities have waited too long for high-quality public infrastructure delivery, such as schools, police stations and hospitals.

Additionally, public infrastructure projects have for too long suffered from abuse and corruption.

Year after year, the Auditor General of South Africa details the issues we face.

These include inadequate feasibility studies, poor project monitoring, procurement inefficiencies, contractor underperformance, delayed projects, and cost overruns.

It is an all-too-common story that in South African towns and cities, infrastructure projects lay abandoned and half complete.

In too many places, infrastructure is in a state of decay, with water and electricity interruptions a daily reality.

Infrastructure budgets and grants remain unspent, while poor planning leads to dysfunctional buildings.

And the state has proven itself unable to complete projects on time and within budget.

This is why we are gathered here today: to address these concerns head-on.

We are gathered here to turn our vision of a country under construction into a reality.

And we are gathered here to bring an end to the poor delivery of the past.

We are gathered here to put South Africa firmly on a high growth path.

We are drawing a line in the sand to embark on the next chapter of South Africa’s infrastructure boom. 

Ladies and gentlemen,

When I was appointed as Public Works & Infrastructure Minister nine months ago, I made the public commitment that during my term, I want to turn South Africa into a construction site.

The vision was formed by the belief that if we are able to increase the number of infrastructure projects in South Africa, we will be able to meaningfully grow the economy and indeed, create jobs.

This vision isn’t just about laying bricks or pouring concrete.

It’s about reigniting hope, connecting communities, and restoring dignity through infrastructure that works and that lasts.

This summit is therefore more than a platform for dialogue.

It is an opportunity to showcase our collective commitment to making this vision a reality and building on the success of the last night months.

It is also a space for big ideas that will build the South Africa of the future.

Indeed, global research has shown that where infrastructure spending is increased by 1% of GDP, the economy grows by an additional 1.5%.

And in an environment, such as South Africa, where we have battled near stagnant economic growth and unacceptable high levels of unemployment, that economic growth is what we desperately need.

Because a growing economy is the essential ingredient for job creation.

Additionally, the success or failure of infrastructure in our towns and cities holds the key to our economic growth and job creation projects.

When trains fail, water pipes burst, or roads are closed, it is our economy that suffers leading to unnecessary job losses.

The City of Johannesburg knows this all too well.

This is why the Government of National Unity has made it its number one priority to grow the economy and to create jobs.

If, during the seventh administration of South Africa, we have failed to meaningfully bring down the country’s unemployment rate, we would have failed.

This is why it is my number one obsession to attract additional infrastructure investment and grow the economy.

During my State of the Nation Address Reply in February, I set the Department of Public Works & Infrastructure the ambitious target to attract an additional R100 billion infrastructure investment in the next four years.

And, we are already making progress to achieve that goal.

But, we also know that many obstacles lie in our way.

Ladies and gentlemen,

In the nine months since I have been in office, we have worked tirelessly to reform the Department of Public Works & Infrastructure to become the economic delivery unit.

It remains my goal to turn the Department into a highly effective vehicle which is able to drive our infrastructure agenda.

And, indeed, we are turning a new leaf in the Department after many years of neglect and decay.

The Department is no longer the laughingstock of the government, but is moving to become a serious player in achieving South Africa’s developmental goals. 

Over the past few months, we have strengthened the department through the filling of key vacancies and introduction of a new accountability mechanism.

This year, we also launched a skills audit within the Department to ensure we have the skills necessary to execute our mandate.

We have launched independent investigations into a number of failed projects, including the close to R1 billion Telkom Towers project in Tshwane, and the Independent Development Trust Oxygen Plant tender.

We are working to improve our ability to deliver infrastructure projects and quickly intervene where things go awry.

In this regard, we are establishing a Special Projects Unit within the Department specifically to address failed or stalled construction projects in the Department.

This unit, which will provide my office with regular progress reports, specifically aims to address projects such as the stalled Sarah Baartman Centre for Remembrance in the Eastern Cape.

Furthermore, we are hoping to expedite the construction of similar failed projects by making use of the trusted panel of contractors, which I announced in my address to the National Assembly last year.

Ladies and gentlemen,

During the second meeting of the Minister and Members of the  Executive Council responsible for Public Works & Infrastructure from across the country, or MINMEC, we also learned of the slow pace of delisting of non-performing or corruption-accused suppliers.

Only one company has been delisted from supplying to the Department since 2002.

This is simply unacceptable and needs to be urgently addressed if we want to reverse the culture of impunity.

This is why we have started working to reform our blacklisting policy which will ensure that contractors who underperform or engage in unethical practices will no longer have the privilege of working on public projects.

The Construction Industry Development Board, or CIDB, have also been tasked to get ahead of underperforming contractors and blacklist them without delay, and to ensure that they are unable to gain any tenders from any sphere or entity of the State.

Within the months ahead, the pace at which companies are delisted should be rapidly increased, with over 40 companies facing blacklisting.

Ladies and gentlemen,

As we work to professionalise the Department of Public Works & Infrastructure, we are also implementing reforms to attract additional infrastructure investment.

In this regard, we are turning Infrastructure South Africa, or ISA, into the central point for all major infrastructure projects in South Africa.

I am very pleased with the work ISA has been doing to ensure that projects are brought to the market.

The conclusion of the first bid window for project preparation valued at R180 million attracted 220 bids valued at R1.23 trillion.

It is thus very clear that South Africa does not have an infrastructure pipeline problem.

At the Sustainable Infrastructure Development Symposium on the 26th of May 2025, we look forward to announcing the winning bids for this window.

Furthermore, ISA is leading an innovative pilot project at four municipalities, through the ‘adopt-a-municipality’ programme, where ISA will play a greater role in planning, execution and delivery of projects in these test cases.

This will help directly address the poor infrastructure delivery we see on a local government level.

We all know that it is at the local government level where public infrastructure failures are felt first-hand.

When sewers overflow, water outages occur, or the electricity trips, the fruits of years of underinvestment, corruption and mismanagement are directly felt by the end user.

This is why we will take the opportunity today to have the necessary and difficult conversation about the collapsing state of municipal infrastructure and the linkages to unaccountable municipal leaders and officials.

We simply cannot allow this disaster to continue without the urgent interventions required.

Ladies and gentlemen,

To improve our infrastructure delivery, the Council for the Built Environment, or CBE, has a major role to play.

CBE, under the leadership of Dr Msizi Myeza, who has organised today’s important gathering, has proven itself more than capable of helping professionalise the industry to ensure that projects are delivered on time and within budget.

One of the key areas the CBE can help to improve the state’s functioning is with the Infrastructure Audit Programme, which we are launching today. 

The Infrastructure Audit Programme represent a game-changer for the Department of Public Works & Infrastructure to ensure that there is always compliance and optimal resource utilization.

Over the years, the state has become overly reliant on external consultants.

Many government agencies depend heavily on external expertise, which has led to high costs and inefficiencies.

While consultants play a role, it is imperative that we build internal capacity within the Department of Public Works and Infrastructure and our entities to reduce this reliance and ensure sustainable project delivery. 

To address these challenges, we are launching the Infrastructure Audit Programme.

This is a strategic initiative that will help strengthen internal auditing capacity within the Department and our Property Management Trading Entity, or PMTE.

The primary objectives of the Infrastructure Audit Programme are to:

Firstly, to ensure compliance, risk mitigation, and optimal resource utilization.

Secondly, to address gaps in project execution, including planning, design, procurement, and facilities management.

And finally, to align our efforts with the National Development Plan to ensure that infrastructure investments contribute to economic growth and job creation. 

This programme will introduce built environment professionals into the auditing process, providing technical expertise in key disciplines such as Construction Management, Quantity Surveying, Engineering, and Property Valuation. 

The first phase of implementation, which began in December, has already deployed 15 practitioners—a dynamic mix of graduates and registered professionals—who are now actively working on high-risk areas such as immovable asset management, lease agreements, and facilities maintenance.

I am pleased to share that these 15 practitioners are here with us today, and I would like to take a moment to acknowledge their commitment and contribution to this critical initiative.

This programme goes beyond improving oversight—it’s about building a sustainable future.

By developing internal capacity, we create jobs for young professionals and reduce reliance on external consultants, strengthening infrastructure delivery while empowering our people.

Let’s applaud these 15 practitioners for their dedication—their hard work shows what we can achieve by investing in our people and prioritizing capacity building.

The success of this initiative depends on collaboration between government entities, professional councils, and the private sector.

We must work together to strengthen governance frameworks, share best practices, and innovate in infrastructure project monitoring and reporting.

Indeed, to truly redefine public works, we must embrace a new approach—one that sees collaborative partnerships between the public and private sectors as central to our success.

Ladies and gentlemen,

There’s no one quite like the private sector to lead the charge on new interventions with infrastructure delivery.

We know that the government cannot do it alone.

Nor should it.

The complexity of our infrastructure challenges demands a united front, where capability, innovation, and accountability are shared.

We must work together as equals.

As partners.

As builders of the same future.

This summit we are holding today therefore provides us with a platform for collaboration, offering an opportunity to discuss legislative developments, explore innovative approaches to asset management, and promote ethical governance.

We are gathered here today to have frank conversations about the suitability of the state’s interventions and approaches.

For example, do we really want to increase the cost of steel used in construction projects through the introduction of steel tariffs?

Does our current procurement framework truly assist us in placing South Africa on a growth trajectory?

These are the tough and difficult questions that we must ask if we want to put South Africa onto a high growth trajectory.

Ladies and gentlemen, 
 
As you can see, the Public Works & Infrastructure sector is gaining critical momentum to play an important role towards South Africa’s development.

We are working tirelessly to achieve our goal of turning South Africa into a construction site, which will help grow the economy and create jobs.

And slowly, the fruit of our labour is starting to show.

We thank the CBE for their invaluable contribution to making today’s summit a reality.

And we encourage participants to look at the stands to see the showcases of cutting-edge construction technologies, building methods, and sustainable materials to improve public infrastructure, making it more sustainable, efficient, and cost-effective.

We can learn from some of these solutions as we work to turn South Africa into a country under construction.  

Let us today reaffirm our commitment to ensuring that infrastructure development serves the public good and drives sustainable economic growth.    

Let us today recommit to building a better South Africa.

Together, we can turn South Africa into a construction site—a place where every infrastructure project lays the foundation for future growth and opportunity. 

Together, we can build South Africa.

Thank you. 

#GovZAUpdates