The only world-class South African infrastructure project

With its A- rating, the Gautrain is ranked far higher than most of South Africa’s infrastructure projects, with SAICE giving the country an overall D rating. 

This means the majority of South Africa’s infrastructure is on the edge of collapse after decades of inadequate maintenance and increased pressure from a growing population. 

Stanlib chief economist Kevin Lings named infrastructure mismanagement as one of the main things South Africa has gotten wrong over the past decade, translating into poor economic growth. 

Speaking at the 2025 Morningstar Investment Conference, Lings explained some of the key reasons behind South Africa’s continued economic underperformance. 

The most significant reason is the collapse of the country’s infrastructure due to a lack of maintenance, necessary upgrades, and expansion. 

Collapsing infrastructure makes it more difficult to do business in the country, disrupting the flow of people and goods around South Africa and imposing additional costs on individuals and businesses. 

Lings explained that ten years ago, SAICE rated South Africa’s infrastructure as C, and now, in SAICE’s latest report, it has deteriorated to a D rating. On its current path, the country is heading towards an E, meaning unfit for purpose. 

“Is there any infrastructure project given an A rating in South Africa? Yes, there is one, and it is the Gautrain,” Lings told attendees at the conference. 

“The Gautrain is the only infrastructure project in South Africa that has been given an A rating. Technically, it is A-, but we call it an A because it is the only one in the country.” 

An A rating from SAICE means that the infrastructure is considered world-class and comparable to the best internationally in every respect. 

It also means the infrastructure is in excellent condition, well-maintained, and has the capacity to endure pressure from unusual events. 

“The Gautrain system is in good condition, although track geometry has deteriorated since the line was built,” SAICE said in its rating of the infrastructure. 

“Sound maintenance practices are in place and the system is still deemed world-class.”

The Gautrain 

The Gautrain, as with much of South Africa’s high-quality infrastructure, was built in anticipation of the 2010 FIFA World Cup. 

Its first route between the central hub of Sandton and OR Tambo International Airport opened on 8 June 2010, just three days before the World Cup kicked off. 

While the railway is only 80 kilometres in total length, it now connects major hubs across Gauteng through a North-South line from Park Station to Hatfield and an East-West line to OR Tambo. 

Initially launched for the World Cup in 2010, it was hoped that the project would drive economic growth in South Africa’s richest province. 

In its first decade of operation, the railway system serviced over 100 million trips and contributed R46 billion to Gauteng’s GDP, excluding the R5 billion generated during its construction phase. 

It also claims to have created 68,000 new direct jobs and thousands of additional job opportunities through the development of new economic hubs surrounding stations in Centurion and Midrand. 

The Gautrain is one of the best examples of a public-private partnership (PPP) in South Africa, with the railway and bus system operated under a concession. 

Bombela Concession Company has construction giant Murray & Roberts, SPG Concessions, and J&J Group as shareholders. 

This company is responsible for the design, construction, and part-financing of the Gautrain project. The concession also includes operating the Gautrain and delivering all services at the required level. 

While this concession has worked well over its 19-year operating period, ridership numbers have failed to recover since the end of the pandemic. 

The Gautrain has lost over five million passengers in the past four years, significantly undermining its financial sustainability. 

This has been attributed to the increased adoption of work-from-home models by companies across South Africa and the elevated pricing of the Gautrain, which makes it inaccessible to some market segments. 

To address this, the Gautrain Management Agency has declared its intention to rethink its business model and potentially appoint a new company to operate the world-class infrastructure. 

Bombela’s concession period comes to an end in March 2026, with the Gauteng government currently engaging new potential partners. 

The provincial government also plans to significantly expand the Gautrain’s network to areas such as Soweto, Cosmos City, Fourways, Lanseria, and Sunninghill. 

Issued on Daily Investor by Shaun Jacobs | https://dailyinvestor.com/south-africa/100443/the-only-world-class-south-african-infrastructure-project/