Investing in transport infrastructure is critical to South Africa’s post-pandemic economic recovery. This is according to Dr Alexander Samuels from the North-West University’s (NWU) Faculty of Economic and Management Sciences. By modernising highways, ports, railways and airports, the country can enhance supply chain efficiency, attract foreign investment, and stimulate job creation, all while positioning itself more competitively in global markets. Expanding transport networks will also strengthen South Africa’s links with regional economies, boosting trade and economic diversification, and building a more resilient future.

Samuels: “A key approach to promoting long-term economic recovery, especially in the post-pandemic era, is to invest in transport infrastructure, which includes highways, railways, ports and airports. In South Africa, significant investment in these sectors not only meets urgent recovery requirements, but also strategically positions the country within regional and global markets. Infrastructure development acts as a catalyst for economic growth by improving supply chain efficiency and reducing transaction costs, thereby attracting foreign direct investment (FDI). In addition, improved transport infrastructure enables better market access, improves connectivity between urban and rural areas, and supports the establishment of new economic corridors. As a result, it can significantly improve the diversification of South Africa’s economic base, moving away from a traditional reliance on primary sectors to more value-added, service-oriented sectors that are resilient to global economic fluctuations.

Transport infrastructure is essential in the context of economic integration, particularly in the context of improving South Africa’s connectivity with other economies in the Southern African Development Community (SADC) and beyond. Improved and expanded transport networks facilitate the more efficient movement of goods, services, and individuals. This not only stimulates intra-regional trade, but also increases South Africa’s participation in global value chains. Improving rail and port infrastructure can alleviate bottlenecks that delay the efficient export of minerals and other commodities, thereby increasing throughput capacity. Modernising airports and improving air connectivity can simultaneously boost tourism and create new business opportunities, thereby contributing to economic diversification and resilience.

In addition, there is a direct correlation between job creation and investment in transport infrastructure through construction and maintenance activities, as well as an indirect link through the growth of ancillary industries such as manufacturing and services. The multiplier effect of these investments can be significant, stimulating wider economic activity and creating sustainable employment opportunities. Furthermore, infrastructure projects can serve to improve the skills of the local workforce, thereby elevating the nation’s human capital index. This facilitates immediate post-pandemic recovery through job creation, while preparing the workforce with skills pertinent to future economic challenges and opportunities. Nevertheless, strong policy frameworks and strategic planning are necessary for the effective stimulation of economic recovery through transport infrastructure investment. South Africa should prioritise initiatives according to their likely economic impact, viability, and sustainability. This includes the use of innovative construction methodologies and technologies that reduce costs, improve efficiency and mitigate environmental impact. The government must also ensure transparency and effective governance in the implementation of infrastructure projects to attract private investment and promote public-private partnerships. These collaborations can leverage private sector expertise and funding, alleviating the fiscal burden on the state while improving project efficiency and innovation.

Investment in strategic transport infrastructure is the key to unlocking South Africa’s economic potential in the post-pandemic era. By optimising supply chain efficiency, generating employment, integrating with regional and global markets, and promoting sustainable development practices, South Africa can recover from the economic downturn and establish itself as a competitive entity on the international stage. Aligning these investments with overarching economic, social, and environmental objectives is key to maximising their impact and sustainability, thereby advancing South Africa towards a prosperous future.”