Infrastructure spending in South Africa to reach $26 billion per year by 2050
Over the next 25 years, infrastructure investment in South Africa is forecast to be led by transport, resources and power, which together will account for more than 60% of total infrastructure spend through to 2050. That is according to research from PwC.
The report from the global accounting and consulting firm offers long-term infrastructure spending forecasts to 2050 across 45 countries, representing 88% of global economic output.
Globally, PwC said that infrastructure is entering an unprecedented investment cycle, with annual spending forecast to rise from $4.4 trillion in 2024 to $6.9 trillion in 2050. As countries modernise transport, power and industrial systems to meet the demands of artificial intelligence, electrification and urbanisation, cumulative global investment is projected to reach $151.1 trillion over the period.
The outlook suggests that global infrastructure spending over the next 25 years will be double that of the previous 20 years, before which comparable data is unavailable.
South African infrastructure
In South Africa, infrastructure spend reached $19 billion in 2024. That spending is forecast to grow 39% to $26 billion per year by 2050. Under the baseline outlook, cumulative investment between 2025 and 2050 will total $582 billion.
Transport infrastructure is the largest sector in terms of total spend, equal to $155 billion between 2025-2050 (27% of total spend). This is followed by resources infrastructure, with total spend of $128 billion over the same period. Power infrastructure spend totals $83 billion over 2025-2050. Together, these three sectors account for 63% of South Africa’s infrastructure spend through to 2050.
Digital infrastructure is the next largest, with total spend of $71 billion, then social ($57 billion), water ($30 billion), agriculture ($28 billion), industrial ($26 billion) and defence ($4.3 billion) over 2025-2050.
Jarendra Reddy, Infrastructure Leader for South Africa at PwC, said: “The scale of infrastructure investment needed over the next 25 years has the potential to take infrastructure beyond just an assemblage of roads, railway lines, pipes, power lines and concrete structures to a fundamentally transformed ecosystem: smarter, more resilient, and interconnected across physical, digital, environmental, and social systems.”
Reddy added however that mobilising capital alone will not guarantee success – execution risk, fragmented planning, inconsistent community engagement, supply-chain vulnerability and outdated delivery models could dilute the economic impact of the unprecedented investment volumes.
“The challenge ahead is more than just mobilising capital; it is a generational opportunity to embed long-term strategies, forge future-ready, locally relevant infrastructure solutions, and revolutionise project delivery with digital and AI-driven solutions. By embracing forward-thinking commercial approaches and smart financing partnerships, South Africa can secure a resilient infrastructure.”
