Finance

R580 billion blow for South Africa

Jonathan Hoyle

 ·12 Aug 2026

South Africa has seen the value of announced investment projects plummet by 81%—or R580 billion—from 2025, with R137.7 billion being committed in the first half of the year.

The data comes from Nedbank’s capital expenditure project listing for the first half of 2026, which indicated a sharp decline in planned projects.

Nedbank’s listing shows a sharp decline in fixed investment plans in the first half of 2026.

The value of new projects announced during the first half decreased to an annualised R137.7 billion, an 81% drop—or R580 billion—from the R718.5 billion recorded in 2025.

The drop in announced projects comes amid a push by President Cyril Ramaphosa to encourage investment, which is a key part of his plan to drive economic growth in the country.

In an address at the 2026 South Africa Investors Conference, Ramaphosa said, “We are embarking on the largest and most ambitious cycle of infrastructure investment in our country’s history.”

“Infrastructure is the flywheel that propels growth. It boosts productivity and trade and reduces the cost of doing business.”

Despite this, the total amount committed to project development in South Africa for 2026 has dropped to its lowest amount since 2017.

The decline has come from both the public and private sectors, with only two public-sector projects announced for the year.

Private sector projects account for approximately R107 billion of the R137.7 billion planned.

Despite the sharp decline, overall gross fixed capital formation (GFCF) is expected to still rise marginally in 2026, just a lot slower than anticipated.

According to Nedbank, the outlook for private sector fixed investment remains uncertain.

Although structural constraints and fiscal risks have eased noticeably, the group noted that heightened downside risks to growth are likely to make firms more hesitant to expand operations.

This is especially true in industries where fuel, fertiliser, and other chemicals account for a significant share of operating costs.

“Increased government infrastructure spending and continued investment in renewable energy capacity should help offset some of the drag from a less supportive global environment,” it said.

Overall, the banking group still expects fixed investment to increase from last year’s low base, although the recovery is likely to be slower and more subdued than initially expected.

“We forecast modest GFCF growth of 0.6% in 2026 and average growth of 2% over the next three years,” it said.

Coming projects

The largest project listed is Coca-Cola’s expansion program, which will bring in approximately R17.6 billion in fixed investment.

The project aims to increase the business’s production capacity, strengthen distribution, and expand its activities with local suppliers.

Apart from the Coca-Cola project, many of South Africa’s largest planned investments involve electricity infrastructure, with a focus on renewable energy.

Renewable energy plans account for roughly half of the total fixed investment plans that were announced in the first half of 2026.

These include the Notsi and Orkney solar projects, which are worth a combined R7.1 billion, and the REIPPP Bid Window 7 final tranche, valued at roughly R16 billion.

South African real estate was also a major contributor to the planned fixed investment, including projects such as the Paarl Mall upgrade and the Waterfall City Conference Centre and Hotel development.

New projects planned in South Africa