CAPE TOWN, May 14 – BlackRock Inc, the world’s largest money manager, said on Wednesday that South Africa is approaching a critical infrastructure turning point that could unlock long-term economic growth, job creation and improved regional competitiveness if supported by large-scale investment.
Speaking at the BlackRock South Africa Infrastructure Investment Summit alongside President Cyril Ramaphosa on Wednesday, Chairman and CEO of Global Infrastructure Partners, now part of BlackRock Inc, Adebayo Ogunlesi said years of underinvestment in energy, transport and logistics infrastructure had constrained economic performance.
“In the 21st century there simply is no excuse for unreliable electricity supply,” Ogunlesi said. “Reliable and affordable energy is a foundation requirement for growth.”
He identified electricity transmission, renewable energy, rail, ports, airports and digital infrastructure as priority sectors capable of boosting productivity and strengthening South Africa’s role as a continental trade gateway.
Ogunlesi also highlighted artificial intelligence as a major future driver of infrastructure demand, particularly for energy systems and data centers.
BlackRock Inc., the world’s largest asset manager with roughly $14 trillion to $15 trillion under management, currently oversees approximately R500 billion in South African assets, according to Ogunlesi.
He said BlackRock expects its South African exposure to double over the next five years, prompting Ramaphosa to joke that the figure should quadruple instead.
The South African president used the summit to promote the country’s reform agenda and infrastructure pipeline to global investors, pointing to ongoing reforms in electricity, logistics, telecommunications and infrastructure financing.
“Infrastructure development in Africa represents one of the largest untapped investment opportunities of our time,” Ramaphosa said.
The president said South Africa plans to spend more than R1 trillion, equivalent to roughly $721 million using an exchange rate of 1,386 rand per dollar, on infrastructure over the next three years while expanding private-sector participation across key industries.
Ramaphosa said the government was opening rail infrastructure to greater private participation while rebuilding operational capacity through Transnet and the Passenger Rail Agency of South Africa.
He also referenced ambitions for future high-speed rail projects after learning that BlackRock-backed infrastructure businesses operate similar systems internationally.
Ogunlesi said governments could no longer rely solely on public financing to close infrastructure gaps and stressed that countries were increasingly competing globally for private capital.
“The good news is that private capital is eager to engage,” he said. “But South Africa is competing with the U.S., Germany, GCC countries, Asian and Latin American countries.”
He added that attracting global investment would require policy certainty, transparent procurement systems, stable regulation and strong legal institutions.
Khoabane Phoofolo said the summit underscored both the scale of infrastructure opportunities and the financing challenges facing South Africa and the broader continent.
Meanwhile, Khumbudzo Ntshavheni said infrastructure remained central to South Africa’s long-term economic recovery strategy but acknowledged that public funding alone would not be sufficient.
“Private sector funding is a component that is too critical for South Africa’s infrastructure development trajectory,” she said.
