By William Baloyi
The lengthy delays between the planning of vital infrastructure and the commencement of construction are set to be significantly reduced. Government is implementing a major reform of its Public-Private Partnership (PPP) framework to accelerate the delivery of key infrastructure including roads, hospitals, office accommodation, and water and sanitation systems.
By introducing amendments to Treasury Regulation 16 under the Public Finance Management Act (PFMA), government is strengthening its PPP framework to drive faster infrastructure development. These reforms aim to remove bureaucratic inefficiencies, enhance the attractiveness of projects to private-sector investors, and build technical capacity within the public sector.
The amendments introduced a simplified approval process for smaller PPP projects valued at below R2 billion. Previously, projects of this scale were subject to multiple, often protracted approval stages. Under the new framework, many of these requirements have been streamlined.
Under the new system, accounting officers are now empowered to approve certain project milestones internally, reducing reliance on multiple layers of National Treasury approval. Importantly, robust oversight is maintained through the PPP Advisory Unit, which will continue to provide technical guidance and strategic recommendations prior to project progression.
The revised regulations, which came into effect on 1 June 2026, represent a decisive shift towards deeper and more effective public-private collaboration. By streamlining processes and improving clarity, the revised rules pave the way for a new wave of investment, faster project implementation and delivery at scale.
Complementing the amended regulations, the new Fiscal Commitments and Contingent Liabilities (FCCL) guideline and Unsolicited Bid Proposal (USP) guideline took effect on 31 October 2025.
The USP guideline provides a structured framework for managing unsolicited proposals from the private sector. Historically, the absence of clear guidelines created uncertainty and discouraged private-sector participation. The revised regulations address this gap by establishing a structured and transparent process for the submission and evaluation of such proposals.
Private entities are now able to submit project concepts directly to government institutions, provided these align with national development priorities and public interest objectives. To safeguard transparency and competitiveness, all unsolicited proposals will still be subject to a fair and competitive procurement process.
To further encourage innovation and participation, National Treasury has introduced provisions that allow for partial reimbursement of development costs incurred by bidders in preparing proposals, even where they are not ultimately awarded the project.
The FCCL framework ensures that PPP projects are fiscally sustainable by assessing, managing, and approving government’s financial commitments and risks.
Amendments to Municipal PPP Regulations have also been developed and are nearing finalisation. Similarly to amendments to Treasury Regulation 16, these regulations seek to facilitate faster project implementation and delivery at scale, once they are gazetted.
For years, infrastructure development has been constrained by inadequate planning, weak project preparation and structuring, limited fiscal space, and insufficient technical capacity within government institutions. These challenges contributed to a growing infrastructure backlog across critical sectors.
Compounding these issues are broader systemic issues including deteriorating financial sustainability, governance shortcomings and institutional capacity constraints within parts of the public sector. These factors have further undermined State’s ability to deliver essential services effectively and at scale.
At the municipal level, the challenges are exacerbated by leadership instability and financial distress. Many municipalities continue to experience governance challenges and capacity limitations that negatively affects delivery outcomes.
Government anticipates that the strengthened PPP framework will help address these challenges by leveraging private sector expertise, innovation, project management capability and investment in public infrastructure programmes.
The amended PPP regulations mark a vital step towards modernising South Africa’s infrastructure delivery model. Government is confident that these changes will unlock private investment, stimulate economic activity and job creation, improve public service delivery, and alleviate pressure on constrained public finances.
For millions of South Africans awaiting reliable infrastructure and essential services, these reforms provide a clear and credible pathway towards the accelerated delivery of hospitals, school, water systems, and transport networks that are vital to improving the quality of life.
*Baloyi is the Deputy Government Spokesperson at the Government Communications and Information System.
