South Africa’s transport sector stands at a critical crossroads: unless urgent investment and private-sector participation are channelled into public transport infrastructure, the country’s economy will continue to stagnate.

North-West University (NWU) transport economist Dr Olebogeng Baikgaki says GDP growth for 2025 is expected to be limited to between 0,9% and 1,3%, and the outlook is poor if decaying infrastructure and inefficiencies are not addressed.

As South Africa marks Transport Month, Dr Baikgaki argues that transportation underpins economic success. “Efficient transport ensures the timely, cost-effective movement of goods from producers to consumers,” he notes. Yet, South Africa’s road, rail and port networks are struggling under the weight of poor maintenance, underfunding and theft.

R1 billion lost every day

The national road network alone has a R197 billion maintenance backlog, while the rail system has suffered from years of neglect, vandalism and capacity loss. As a result, freight and passenger transport services have declined, with businesses increasingly forced to rely on expensive road options. This shift, Dr Baikgaki warns, costs the economy nearly R1 billion daily in productivity and logistics losses.

To address these challenges, he calls for a stronger embrace of public-private partnerships (PPPs) to inject much-needed capital and expertise into projects such as seaports, railways, roads, bridges and pipelines.

“By fully embracing the PPP model, South Africa could revitalise its underperforming transport infrastructure,” he says.

However, the country’s record with PPP implementation lags behind nations such as China and Russia, where private investment has contributed to more robust economic performance. Dr Baikgaki recommends developing a clear legal framework to boost investor confidence and transparency.

He adds that sustainable investment in transport will not only boost trade and connectivity but also create jobs, improve competitiveness and stimulate long-term economic resilience. “A modern, efficient transport system is the backbone of national development,” he concludes. “Without it, South Africa cannot hope to achieve inclusive, sustainable growth.”

Dr Olebogeng Baikgaki