Finance Minister Enoch Godongwana has reiterated government’s commitment to making infrastructure investment the bedrock of the country’s growing economy.
The Minister tabled the 2026 Budget Speech in Parliament on Wednesday.
“Infrastructure investment remains the foundation upon which long-term economic growth, improved service delivery and job creation are built.
“Government is shifting the composition of spending towards growth-enhancing public infrastructure,” he said.
During the Budget Speech last year, Godongwana announced that some R1 trillion would be allocated for infrastructure investment over the medium term.
Of this allocation:
- R577.4 billion will be spent by state-owned companies and other public entities;
- R217.8 billion by provinces; and
- R205.7 billion by municipalities.
Transport and logistics will make up the lion’s share of expenditure.
Project funding
The Minister noted that since the shift from annual to quarterly funding windows, the Budget Facility for Infrastructure (BFI) has approved some “R21.9 billion for five major projects”.
“These include Transnet’s coal and iron ore corridor projects, which will restore rail capacity to 77 million tonnes for the coal line and 60 million tonnes for the ore line, and the Polokwane regional wastewater programme.
“As part of the efforts to position infrastructure as an investable asset class, government issued an infrastructure bond in 2025 raising R11.8 billion to support its contribution in BFI approved projects,” Godongwana said.
The facility’s call for proposals for the 2026/27 cycle opens today with a detailed circular available on National Treasury’s website.
“We call on public institutions in key sectors of the economy to submit proposals with funding gaps and strategic value, for consideration.
“This includes critical social infrastructure such as courts, correctional facilities, police stations and even the development of new tertiary institutions like the proposed Ekurhuleni University and student accommodation, as well as health care facilities such as the Dr George Mukhari Academic and the Inkosi Albert Luthuli Hospital,” Godongwana said. – SAnews.gov.za
