World Bank loan should drive upgrades to South Africa’s roads

South Africa’s infrastructure is faced with a dual challenge: physical networks that need to be upgraded and expanded, and institutions that need additional support. The World Bank’s recent agreement for a $1.5 billion loan will provide crucial financial support to address both. However, its real value will only be realised when it reaches the country’s physical electrical grid and freight networks – two priorities the agreement strongly emphasises.

Road infrastructure is particularly critical to South Africa’s continued economic growth. According to Statistics South Africa’s Land Transport Survey, road freight carried some 190,211 tonnes per month between March and May, compared to just 42,095 tonnes transported each month by rail. In other words, roads are moving more than four-fifths or 81.88% of the country’s total freight weight.

Road freight dominance is unlikely to decline, and as the country’s population and economy grow, the demand placed on road infrastructure will only intensify. It is vital that the World Bank loan reflect this reality, and place an emphasis on developing the country’s roads. If implemented correctly, these funds will translate to lower transport costs, fewer bottlenecks, and improved competitiveness.

Effective and thoughtful fund allocation is critical

The need is significant. Key national and regional routes need modernisation to handle growing volumes of freight traffic, while secondary roads that connect smaller communities to these corridors require maintenance and upgrading to ensure the safer and more efficient movement of goods. By strengthening the road component of the freight network, government can achieve immediate wins in reliability and long-term benefits in economic growth.

GIC has been involved in large-scale roadworks and public infrastructure projects for decades, serving as a trusted partner to government through public–private partnerships (PPPs). This involvement has shown the importance of aligning financial support with practical implementation on the ground.

From experience, it’s clear that consultation with public-private partners is the best way forward in determining where best to allocate funds, as well as to develop a comprehensive programme for targeted upgrades and expansion efforts. PPPs bring valuable insight to the realities of project delivery, helping to ensure that funding is directed toward initiatives that will deliver measurable results rather than becoming tied up in planning delays or administrative hurdles.

Priorities for immediate impact

One of the most effective approaches would be to allocate a portion of the funds to strengthening major national freight corridors, where the bulk of South Africa’s road freight moves. These routes must be widened, resurfaced, and modernised to carry heavier traffic safely and efficiently. Likewise, private partners with the experience and necessary resources must be tapped to help ensure road projects are completed successfully, and within budgets and allocated time limits.

Additionally, prioritising secondary roads that connect rural and peri-urban communities to these freight arteries will spread the benefits more widely, eliminating barriers to accessing opportunities so that economic growth can reach beyond main industrial hubs.

A clear framework for long-term maintenance should also form part of any allocation strategy. Ring-fencing a portion of these funds for ongoing maintenance will ensure that projects don’t deteriorate within the space of a few years, and will significantly extend the lifespan of the infrastructure.

Creating lasting value for communities

Upgrades should further be aligned with climate-resilient construction methods. South Africa’s roads must be built to withstand extreme weather events and shifting temperature patterns alongside rising freight demand. Using durable materials, improving drainage, and adopting environmentally conscious design will reduce lifecycle costs while aligning infrastructure development with the country’s broader commitment to sustainability.

Equally important is ensuring that local communities benefit directly. Sourcing materials locally, employing regional labour, and investing in skills development around these projects creates immediate social and economic upliftment. It also strengthens the long-term sustainability of infrastructure by ensuring that communities have both the incentive and the capacity to help maintain it.

Finally, a structured consultation process between government, private sector partners, and local stakeholders will help identify priority projects and establish realistic timelines. This will encourage accountability on all levels, and maximise the economic impact of every rand spent.

The $1.5 billion loan is a key opportunity to stabilise South Africa’s institutions and transform the physical infrastructure that supports growth. With careful planning and a strong focus on roads, this funding can address urgent freight demands, improve competitiveness, and leave a lasting legacy of reliable infrastructure for generations to come.