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SA weighs private capital to unlock transport growth

South African industry leaders have explored how investment, better use of existing infrastructure and stronger governance could help turn the country’s transport network into a driver of economic growth.
Source: Supplied
Source: Supplied

At a transport infrastructure roundtable hosted by GIBB Group and convened by the Academy of Science of South Africa (ASSAf) and the South African Academy of Engineering (SAAE), industry leaders examined how South Africa can better use its transport infrastructure to support economic growth.

Key speakers Dr Andrew Shaw, group executive: strategy at Transnet SOC Ltd; Dr Hubert Joynt, who heads the Centre of Excellence at Infrastructure South Africa (ISA); Pine Pienaar of the South African Academy of Engineering (SAAE), and Edmund Nxumalo of the Engineering Council of South Africa (ECSA) shared insights and potential solutions for developing a transport system that effectively supports the country’s economic ambitions.

The discussion explored South Africa’s infrastructure challenges, the role of private-sector investment in bringing projects to fruition, the importance of sound governance, and the need to prioritise inclusive growth while strengthening engineering capacity and skills.

It also considered how road safety, integrated public transport, freight and logistics, climate resilience and smart mobility need to work together if transport is to connect people to jobs, businesses to markets and regions to economic opportunity.

GIBB Group chief executive officer Vishaal Lutchman, who facilitated the conversation, highlighted the growing role of private-sector finance in infrastructure development. “This marks a shift from a model in which state-owned entities such as Transnet and Eskom historically largely funded their own infrastructure investments, at times without having to raise debt. Now these entities are leveraging private capital to support their growth ambitions.”

Lutchman questioned how the growing use of private capital could be aligned with the country’s transformation and redress objectives. He also challenged delegates to consider how these models could broaden participation in the value created by infrastructure.

Extending the discussion to how projects are assessed, Pienaar highlighted the importance of considering wider economic and community impacts, including job creation and effects on local businesses, alongside benefits to road users.

Shaw noted that South Africa already has a well-developed rail network and an extensive port system. The priority, he argued, should be to maximise the value of existing infrastructure before determining where further investment is justified.

He cited research associated with Stellenbosch University suggesting that effective operation of Transnet’s infrastructure at achievable freight volumes could increase GDP by approximately 2%.

Unlocking growth through private-sector participation

How can South Africa unlock more economic value from its existing transport infrastructure while making the case for new investment where it is needed?

Shaw identified private-sector participation (PSP) as a key part of the solution. Through collaboration between government and the private sector, including shared-equity investments, South Africa could accelerate infrastructure development, stimulate growth and re-establish key transport corridors.

“We see it as a corridor-based model because that is where we see the value to the economy,” he explained.

Delivering sustainable benefits and strengthening engineering skills

Pienaar highlighted the SAAE’s aim to improve South Africa's economic competitiveness and the quality of life of its people.

“Our interest in transport infrastructure is not only in building and maintaining more roads, railway lines, ports, and airports, but in ensuring that this infrastructure investment delivers sustainable economic and social benefits.”

Nxumalo focused on the need to strengthen the engineering skills pipeline through accredited education, workplace training and professional registration.

“Various ECSA initiatives are aimed at ensuring engineers are retained within the engineering fraternity.”

Making infrastructure work for inclusive growth

Turning to inclusivity, Joynt, who leads the Centre of Excellence at ISA, highlighted inclusive growth as a key objective of the Government of National Unity.

In collaboration with the University of Johannesburg, ISA developed an Inclusive Growth Index to measure how economic growth translates into broader benefits for communities. The index comprises eight variables, four to five of which are directly or indirectly influenced by infrastructure.

“Inclusivity means everybody must benefit – so data must be per capita economic growth, not national growth,” Joynt explained.

The findings revealed that some small rural towns with mining or agricultural activity scored higher on inclusive growth than major metropolitan centres such as Johannesburg and Cape Town.

“This shows that inclusivity need not always be government-led.”

The findings highlight the potential for strategically developed transport infrastructure to connect people and businesses to economic opportunities, support local industries and contribute to more inclusive growth across South Africa.

The broader test for transport investment is not simply how much infrastructure is built, but whether the system improves access to jobs, strengthens trade and local economies, supports safer mobility and creates more inclusive economic opportunities.

For GIBB Group, which marks 70 years of uninterrupted operations in 2026, facilitating the roundtable reflects a broader anniversary focus: applying seven decades of infrastructure experience to today’s challenges. Across rail, roads and public transport, that experience sits alongside the Group’s engineering, architecture and investment capabilities, connecting past lessons to the infrastructure decisions ahead.

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