South Africa is preparing to put more than R264 billion ($16.53 billion) in major public works projects out for commercial bidding over the next 12 to 18 months, part of a drive to lure private capital and jump-start a sluggish economy.

President Cyril Ramaphosa said Tuesday that the government’s total lineup of priority developments has expanded to R1.67 trillion ($104.6 billion), up from roughly R340 billion ($21.3 billion) in 2020.

Speaking at the Sustainable Infrastructure Development Symposium in Cape Town, Ramaphosa noted that getting these deals past the planning stage is essential to creating jobs and lifting household living standards across the country.

Closing South Africa’s critical investment gap

The planned spending covers water networks, power grids, logistics corridors, and municipal services. To build trust among private financiers and hold state agencies accountable, Ramaphosa said the government will begin releasing quarterly performance reports tracking every project’s progress.

Africa’s most industrialized economy expanded 1.1 percent in 2025. While that marked its best annual showing since 2022, output remains constrained by ageing railways, port bottlenecks, and power cuts that continue to disrupt factories and exporters.

A major hurdle has been fixed investment. Capital spending stood at roughly 14 percent of gross domestic product in 2025 — less than half of the 30 percent target policymakers set out to reach by 2030.

South Africa eyes construction rebound pipeline

The retreat in building activity has taken a toll on local contractors. The construction sector’s direct share of South Africa’s economic output fell to 2.3 percent in 2025, down from 4.2 percent in 2008, according to official data from Statistics South Africa.

To counter that slide, state officials are shifting focus toward securing early-stage funding and regulatory approvals rather than merely announcing broad lists of intended projects.

The state’s current public works registry details more than 170 projects. Of those, 55 ventures valued at more than R407 billion ($25.5 billion) are under construction, while 32 projects worth about R48 billion ($3 billion) have crossed the finish line.