Theme: Developing Infrastructure for inclusive economic development, transformation and Job Creation
09 July 2025
As the African National Congress (ANC) under the Government of National Unity (GNU) we support the budget because we fill that it is a vital component to address challenges facing our people through the programs under the Department of Public Works and Infrastructure (DPWI). For us to properly implement our budgetary obligations we need to have a proper regulatory framework for construction and infrastructure development in DPWI which will lay a foundation for delivery of services to our people. In order to ensure safety, quality, and sustainability while simultaneously fostering economic growth and social fairness, a suitable regulatory framework is essential for South African infrastructure development and construction. By establishing guidelines, ensuring adherence and encouraging openness and accountability among the sectors, it offers a basis for responsible growth.
A mix of national laws, policy directives and government agencies make up South Africa’s (SA’s) regulatory framework for building and achieving targets of infrastructure development initiatives. The Constitution, the Infrastructure Development Act, the Construction Industry Development Board (CIDB) Act and other laws pertaining to infrastructure development, acquisition and change in the building industry are important components. In order to execute and monitor these regulations, public organizations such as the National Treasury, the CIDB, and the Department of Public Works and Infrastructure (DPWI) are essential. As we re-affirm our support for the budget, let me start with the Agrement South Africa which one of its duties is to assess the suitability of non-standardized systems or goods used in the building sector for which there is no national standard.
The organization will concentrate on putting programs in place that encourage social cohesiveness and safer communities in the medium run. It intends to accomplish this in the medium term by issuing 45 eco-labelling schemes, certifying 45 products and systems through partnerships with different organizations, conducting yearly quality and compliance inspections for certificates in use and conducting yearly market usage analyses to comprehend the reach and use of the certified products and systems. R48 million and R11.4 million, respectively, are allocated over the Medium-Term Expenditure Framework (MTEF) period to the regulatory and certification services program and the proactive and pertinent built environment interventions program in order to meet these goals.
These allotments together make up an estimated 48.6% of the entity’s overall budget. From R35.9 million in 2024 to 2025 to R42 million in 2027 to 2028, total expenditures are anticipated to rise at an average annual rate of 5.4%. During the MTEF period, staff remuneration is predicted to account for an amount of R82.9 million of the entity’s budget. It anticipates that transfers from the department will account for an amount of R104.2 million of its earnings in the upcoming quarter, with the remaining portion coming from application and yearly fees paid by certificate holders. Revenue is anticipated to rise in tandem with expenditures.
The CIBD is required to oversee the transformation of the construction sector by promoting and facilitating the participation of historically underrepresented groups; establish and promote best practices among public and private sector role players in the construction delivery process; and provide strategic leadership to stakeholders in the industry to stimulate sustainable growth. The best practice project assessment plan, which aims to grow small and emerging contractors in the industry and increase capacity, is implemented by the board. Over the coming years, the program is anticipated to bring in an estimated R240 million. The board will be able to carry out its developing strategies, including offering developmental finance, with the use of these monies.
Over the medium term, 420 clients are expected to benefit from provincial capacity-building initiatives in the infrastructure delivery management system, which will cost R120.1 million. From R307.7 million in 2024 to 2025 to R347 million in 2027 to 2028, expenditure is anticipated to rise at an average annual rate of 4.1%. Over the medium term, staff remuneration is forecast to account for an amount of R464.6 million of the entity’s budget. Departmental transfers are expected to contribute R245.5 million of the board’s future earnings. Interest on investments, registration fees, and the best practice project evaluation plan are expected to provide the remaining funds. It is anticipated that revenue will rise in tandem with expenditures.
The Council for the Built Environment encourages and defends the public’s interests in matters pertaining to the built environment; it encourages and preserve a sustainable built and natural environment; while encouraging the the continuous development of human resources in the built environment; it also promotes and encourages the prudent management of the built environment professions; and make it easier for professionals in the built environment to participate in integrated development within the framework of national objectives. As a result, the council intends to keep concentrating on facilitating and managing the built environment skills pipeline in the medium term.
The professional skills and capacity development program, which has a medium-term budget of R2.9 million, is anticipated to carry out these objectives. The council intends to oversee the execution of the built environment structured candidacy program in order to assist nine districts annually during the MTEF period. It aims to concentrate on districts that are prepared and dedicated to the professionalization of the built environment process. It is anticipated that spending will rise from R57.5 million in 2024 to 2025 to R67.9 million in 2027 to 2028 at an average yearly rate of 5.7%. R167.1 million of the council’s anticipated revenue over the next three years will come from departmental transfers, with the remaining amount coming from levies collected from built environment councils.
It is anticipated that revenue will rise in tandem with expenses. Another important entity we need to look into is the Independent Development Trust (IDT). The IDT is a state development organization that carries out projects that are commissioned by the state and local governments. These projects use social infrastructure programs as the foundation for reaching communities and creating assets there.
The trust’s medium-term goal is to empower underprivileged communities by offering project management services for the construction and renovation of social infrastructure, mostly in rural areas, including schools, clinics, and community centres. By doing this, it anticipates generating 43,000 job opportunities annually over the course of the next 251 years, primarily through the expanded public works program, and an additional 8,637 job opportunities through other program portfolios. The program management program, which has a medium-term budget of R681.6 million, will carry out these tasks. From R529.2 million in 2024 to 2025 to R655.3 million in 2027 to 2028, expenditure is anticipated to rise at an average annual rate of 7.4%. Employee compensation is projected to account for R935.3 million of total spending during this time frame. The majority of the trust’s income, R2 billion over the medium term, comes from management fees paid to the Department of Infrastructure and Public Works as well as other client departments. It is anticipated that revenue will rise from R520.2 million in 2024 to 2025 to R731.5 million in 2027 to 2028 at an average annual rate of 12%.
I thank you