SA Infrastructure Report 2025
Abstract
This comprehensive report examines South Africa's infrastructure investment landscape for 2025, analysing sector-specific trends, financing mechanisms, and the outlook for development impact across all nine provinces. The report draws on DBSA's four decades of development finance experience and extensive project data to provide actionable insights for policymakers, investors, and development practitioners.
Key Findings
Infrastructure Investment Gap Narrows
South Africa's infrastructure investment gap narrowed to R1.8 trillion in 2025, down from R2.1 trillion in 2023, driven by increased DFI participation and improved municipal capital expenditure performance.
Renewable Energy Leads Capital Allocation
The energy sector attracted the largest share of infrastructure investment (34%), with renewable energy projects accounting for 78% of new energy commitments — a historic shift from coal-based generation.
Water Sector Requires Urgent Attention
Municipal water infrastructure remains critically underfunded, with 42% of water treatment works operating below regulatory standards. The report recommends a tripling of current investment levels over the next five years.
Blended Finance Unlocks Private Capital
Innovative blended finance structures deployed by DFIs mobilised R4.20 in private capital for every R1.00 of concessional funding, demonstrating the effectiveness of catalytic capital approaches.
Table of Contents
How to Cite
APA: Development Bank of Southern Africa. (2026). SA Infrastructure Report 2025: Investment Landscape, Sector Trends, and Development Outlook. Midrand: DBSA.
ISBN: 978-0-000-00000-0
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