OPINION| Municipal infrastructure: a complex landscape with emerging opportunities

By Alastair Herbertson and Reabetswe Kungwane

Municipal infrastructure in South Africa is under significant strain as the country continues to face the dual challenge of ageing systems and a growing population. This has left local governments grappling with essential service delivery, particularly in water, energy, and sanitation. Although the outlook is mixed, there are pockets of opportunity for investors willing to navigate the complexities.

South Africa’s urban centres, which remain critical drivers of economic activity, have also been adversely impacted, making the need to restore and expand municipal infrastructure ever more urgent. The need to invest in municipal infrastructure development has, therefore, become increasingly evident, with the national government calling for greater private participation to help remedy the situation.

Current state of municipal infrastructure

South Africa’s municipalities form the backbone of essential public services, yet a significant part of local government has struggled with fiscal and operational difficulties. The Auditor-General’s