The Department of Public Works and Infrastructure will receive an allocation of R7.8 billion for the 2026/27 financial year, with medium-term funding totalling R24.6 billion, as government intensifies efforts to reform infrastructure delivery, improve asset management and unlock investment through public property and stalled projects.
Tabling Budget Vote 13 on Wednesday, Minister of Public Works and Infrastructure Dean Macpherson said approximately R6.4 billion of the allocation would go towards transfers and subsidies, including support for entities and conditional grants for the Expanded Public Works Programme (EPWP), while the Property Management Trading Entity (PMTE) projected revenue of R18 billion for the year ahead.
Infrastructure South Africa (ISA) was highlighted as a key vehicle for unlocking infrastructure investment and improving the state’s ability to prepare credible projects.
At the South African Investment Conference, ISA helped secure a $1 billion investment pledge, equivalent to about R17 billion, linked to a proposed bioethanol production facility.
Government also confirmed that the Minister of Finance had approved the formalisation of ISA, with draft legislation expected to be gazetted for public comment within the next two months.
Among the department’s flagship infrastructure projects is the new R769 million Deeds Office under construction in Johannesburg’s inner city.
The project, described as the first new high-rise development in the Johannesburg CBD in more than two decades, is expected to be completed in October and is intended to reduce rental costs while contributing to urban renewal.
Government said it had also prioritised unblocking delayed infrastructure projects through the Strategic and Special Delivery Unit.
This included the handover of the Durban Forensic Science Laboratory to the South African Police Service within 12 months and progress on the Sarah Baartman Centre of Remembrance, where a contractor has now been appointed after delays spanning more than a decade.
The Independent Development Trust (IDT), which government said had previously become associated with corruption and instability, was presented as another area of recovery.
The Minister said the IDT’s order book had grown from near collapse to R6 billion in confirmed projects after increasing by R2 billion, while its monthly cash position had tripled. During the 2025/26 financial year, the IDT completed 279 social infrastructure facilities, exceeding its target of 244.
Macpherson outlined efforts to repurpose state-owned properties for social use.
More than 46 government-owned properties were made available during the past financial year for shelters for victims of gender-based violence and femicide, as well as for skills development centres.
Government said it was also proceeding with the disposal of 801 unused properties.
In the construction sector, the Construction Industry Development Board removed 52 contractors from the Register of Contractors for fraudulent activity over the past 22 months. The Minister noted that only two contractors had been blacklisted in the previous 22 years.
He announced reforms to the EPWP through a pilot initiative called Working on Infrastructure.
The programme aims to address both unemployment and infrastructure maintenance challenges through longer-term work opportunities lasting between eight and 10 months.
The initiative includes skills development, workplace experience and digital application systems designed to eliminate political gatekeeping and manipulation in recruitment processes.
Despite progress, the department said resistance to reform remained entrenched, particularly within the PMTE.
The entity, which oversees state property assets, has never achieved a clean audit since its establishment in 2014. Government said the PMTE had been affected by weak systems, inflated leases, underutilised buildings and financial pressure.
The department noted that government continues to spend around R6 billion annually on private leases despite owning thousands of buildings and millions of hectares of land. Concerns were raised about leases lacking proper oversight, emergency extensions designed to bypass scrutiny and widespread underutilisation of state assets.
The Auditor-General’s findings on Telkom Towers were cited as evidence of poor asset management, with most buildings remaining unoccupied or not used for their intended purpose.
Government said audits had also uncovered 60 individuals who had allegedly received salaries despite not being employed by the department, with most cases linked to KwaZulu-Natal. Lifestyle audits of senior officials were also underway, although the department said some officials had resisted participation.
Looking ahead, the department identified three infrastructure priorities for the coming year.
The first is the establishment of the South African National Property Company, which government said would shift the state from passive ownership to active asset management.
The proposed entity is intended to unlock value from public assets, reduce dependence on private leases and support mixed-use precincts, affordable housing and urban renewal projects.
The second priority is deepening EPWP reform through the expansion of Working on Infrastructure, with plans to strengthen digital recruitment systems and improve participant verification.
The third priority focuses on small harbour reform aimed at stimulating economic growth in coastal communities. Government said it was developing a framework to determine the best-use model for each harbour to support sectors including fishing, tourism, transport and small business development.
The department said the year ahead would focus on fighting corruption, strengthening governance, stabilising entities and accelerating infrastructure delivery despite what it described as organised resistance to reform. – SAnews.gov.za
