Revitalizing Public Works: A Catalyst for South Africa's Economic Growth

South Africa's public works portfolio has historically been marred by state capture and corruption, hindering the country's economic growth and development. However, with decisive interventions, this portfolio can be transformed into a powerful tool for inclusive economic growth and state renewal. President Cyril Ramaphosa and the African National Congress must pursue the vision first outlined by President Nelson Mandela to turn South Africa into a construction site, creating jobs and unlocking economic growth.

Key Takeaways:

• The Department of Public Works and Infrastructure (DPWI) needs to be cleansed of the cancer of state capture, with politicians, businesspeople, and officials involved in corruption removed and made to face the law.
• Transparent procurement processes for property leasing are necessary, and the government must ensure the completion and availability of the long-promised asset registry of all state property.
• A cleansed and renewed DPWI must reimagine its role in driving the nation's transformation and inclusive economic growth, freeing state property for economic infrastructure investments.
• The state is the largest employer, requiring land and buildings to fulfill its responsibilities, yet billions of Rands are spent on renting expensive properties, despite vacant state buildings and sites of criminal activities.
• DPWI needs to become a progressive property agent, availing land for housing, particularly for low-income households, and providing land for SMMEs, industrial, and commercial development.
• The state owns 30% of South Africa's land, but there is a pressing need for land to be released for farm workers, labour tenants, and residents of informal areas to build homes.
• The Expropriation Act aims to fix the issue of land being sold back to the state for market-related compensation, highlighting the need for a capacitated DPWI to become a site of victory over state capture and corruption.

Statistics:

• South Africa's economy has barely averaged 1% annual growth over the past 15 years.
• Unemployment stands at a staggering 43.1%.
• The fiscus faces a long list of pressing needs.
• The Public Procurement Act has been assented to, and its promulgation and Regulations need to be expedited.
• 2,407 teachers were retrenched in the Western Cape in 2024, while the same provincial government is spending millions each month renting office space in Cape Town.
• The Public Investment Corporation has extensive experience in property management and rental income.

Sources:

• "Public Works can and must become an enabler of state renewal and inclusive economic growth" by Zingiswa Losi, Cosatu President
• The views expressed by Zingiswa Losi are not necessarily representative of Independent Media or IOL.