President Cyril Ramaphosa has declared that South Africa’s R1‑trillion infrastructure programme must serve as the foundation of a new era of industrialisation, warning that the country cannot afford to expand transmission lines, railways and ports, while allowing its metals and engineering industries to decline.

Economic reform

Speaking at the SEIFSA Presidential Business Breakfast, Ramaphosa said that with more than 1 300 member companies, SEIFSA represents an industrial capability of immense strategic importance to the country.

“That capability matters particularly now. Because South Africa is entering one of the most important periods of infrastructure investment and economic reform since the advent of democracy.

“Government’s infrastructure programme amounts to around R1 trillion over the next three years. We should view this not simply as a construction programme. We should view it as an industrial strategy,” Ramaphosa said.

Ramaphosa said the nation faces a historic opportunity to rebuild its manufacturing base.

“Every transmission line we build, every railway we rehabilitate, every port we expand and every water system we construct should contribute to expanding the productive capacity of our economy,” he told industry leaders.

“We must use this infrastructure programme to create factories, develop skills, strengthen supply chains, support new industrialists and create jobs.”

Backbone of economy

Ramaphosa described steel, engineering and manufacturing as the backbone of the economy.

“Manufacturing is not simply another sector of the economy. It is fundamental. It generates skills, drives innovation, supports exports, creates productive employment and sustains thousands of businesses,” he said.

Electricity reform

Electricity reform was singled out as critical. While load shedding has ended, Ramaphosa warned that high tariffs threaten energy‑intensive industries.

“Once a smelter closes, we lose productive capacity, we lose skills, we lose export earnings, and we weaken entire industrial value chains. These are jobs that are extremely difficult to recreate,” he cautioned.

He promised that the next phase of reform would focus on affordability, with a competitive electricity market expected to begin operating next year.

Energy transition

The President also linked the energy transition to industrial renewal, pointing to the massive expansion of the transmission grid.

“Over the coming decade, South Africa needs around 14 000 kilometres of new transmission lines, together with major investment in substations and transformation capacity. This should become one of the great industrial projects of our generation,” he said.

Technology

Ramaphosa stressed that the energy transition must also be a technology transition.

“South Africa should not simply import the technologies required for the new energy economy. Where we have the capability, or can realistically develop it, we should manufacture them here,” he said, highlighting opportunities in renewable energy components, battery manufacturing, and green hydrogen.

He added that government would use procurement tools to secure technology transfer, research and development, and supplier development where imports are unavoidable.

Skills

Ramaphosa urged industry to invest in skills and apprenticeships, warning against missed opportunities.

“We should not find ourselves, ten years from now, with a vastly expanded transmission grid but a diminished domestic manufacturing industry. That would represent a missed historic opportunity,” he said.

He concluded with a call for unity between government, business and labour.

“If we do these things together, South Africa can once again become a country that makes things – a country that manufactures the equipment for its own development, transforms its minerals into higher‑value products, and creates millions of productive jobs for its people.”