By Lebone Rodah Mosima
The Gautrain remains a flagship example of a successful Public-Private Partnership (PPP) in Gauteng and one of the largest transport PPP projects undertaken on the African continent.
Speaking during the 2026/27 Gauteng Provincial Legislature address on Tuesday, Gauteng MEC for Finance and Economic Development Lebogang Maile said infrastructure development remains essential for economic growth and job creation, but government alone cannot meet the scale of investment required to modernise and expand provincial infrastructure.
According to Maile, economic projections for the medium-term point to steady recovery with provincial economic growth expected to reach 2.1% in 2026, significantly above the national average.
“In a constrained fiscal environment, it is crucial that we embrace innovative financing and delivery models that allow us to leverage the strengths of both the public and private sectors,” Maile said.
He noted that PPPs remain a critical instrument in accelerating infrastructure development by enabling government to mobilise private sector expertise, technology and capital while ensuring value for money and the efficient delivery of projects.
Maile added that greater priority should be placed on PPPs that are revenue-generating or financially self-sustaining, as these allow meaningful private sector participation while generating returns and easing pressure on public finances.
He also welcomed reforms introduced by National Treasury through amendments to Treasury Regulation 16, which came into effect in June 2025.
Municipal PPP regulations are expected to be finalised by June 30, 2026, which will enable local governments to participate more effectively in infrastructure partnerships.
“These reforms aim to streamline and strengthen the PPP framework, improve project preparation and governance, and unlock greater private sector participation in infrastructure development,” he said.
Maile said Gauteng is aligning its infrastructure delivery programmes with the strengthened regulatory framework to accelerate the preparation and financing of priority projects while safeguarding public interests through proper risk allocation, affordability and accountability.
Referring to the Gautrain, Maile said the current concession agreement will conclude in March 2026, with the province already advancing the procurement process to appoint a new concessionaire to operate, maintain and modernise the system under a renewed PPP arrangement.
“This initiative aims to turn the Gautrain into a fully paid-up state asset valued at approximately R45 billion, positioning the province to maximise the long-term economic and mobility benefits of this strategic investment,” he said.
He added that the post-2026 concession will ensure service continuity, strengthen the operational sustainability of the system and enhance private sector participation while delivering value for money for residents.
“Beyond the Gautrain, we will continue to explore opportunities to expand the use of Public-Private Partnerships in other strategic infrastructure sectors, including transport, tourism, water, energy, digital infrastructure and environmental services, as part of our broader strategy to unlock investment and stimulate economic growth,” said Maile.
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