Every year, the International Federation of Consulting Engineers (FIDIC) releases its State of the World Infrastructure Report. Every year, I find this report interesting and enlightening – and this year was no different. While South Africa faces many unique challenges in our consulting engineering industry, the report shows annually that in many challenges, we are not alone. 

This is as true now as it has ever been. The world has changed in the past 12 months: the pandemic has not only changed how we work, but the environment and economy in which we work. This is accurate for countries across the world. However, the report states – and I must agree – that “Covid-19 is not the only challenge in town”. Many of the problems we face today existed before the virus reached our shores. The solutions, too, remain largely the same. The difference now is the urgency with which they are required.

Infrastructure development has the potential to offer much-needed economic stimulus if it is done in a calculated,
coordinated and – importantly – sustainable manner. This is widely understood by all FIDIC members, of which CESA is one. However, the report reveals that the true state of infrastructure investment is dismal across the board. Lack of investment is arguably the biggest problem facing the global infrastructure sector, and we know this to be true in South Africa. There is a trillions-of-dollars gap in investment for current needs, never mind the trillions more that will be needed if we are to make any progress on the United Nations’ Sustainable Development Goals. 

The report highlights that the world needs to invest at least 19% more funds between now and 2040, to meet expected infrastructure needs. In numbers, that is an increase from $3.2 trillion per year to $3.7 trillion. The question of course is whether this sounds achievable.  Now consider that this needs to essentially double to between $5 trillion and $7 trillion a year to meet the commitments of the SDG’s.
                                                           
So, what can we do to meet this extreme challenge?  The report makes three important recommendations which we could certainly take into account in South Africa. The first recommendation is to improve infrastructure spending to meet the investment challenge facing the world. If Covid has taught us anything, it’s that quality infrastructure and expert engineers are vital for society and for sustainability. Infrastructure is a sector which surely warrants investment which the wider financial players need to understand.

The second recommendation is that governments construct a mechanism to support sustainable investment and prudently shift away from carbon-intensive investments and the burning of fossil fuels. It needs to be a “Just Transition”. This would provide for capital to be spent more in alignment with the SGD’s while not overlooking the immediate needs of a Country. South Africa is certainly aware of its carbon footprint and our efforts towards renewable energy have been commendable. 

The final recommendation is that there needs to be a greater consideration of the maintenance-investment ratio. Maintenance budgets should not suffer in the drive towards improved investment, but the design of new infrastructure can certainly take into account cost-effective solutions to maintenance challenges. In South Africa, it is widely understood that poorly maintained infrastructure is actually pushing us further away from achieving any SDG’s – an obvious example lies in water and sanitation alone.

It is crucial that South Africa takes seriously our infrastructure challenges, as well as the implications on the environment and that of its people’s health and social wellbeing. We must learn from our experiences gained in managing the impact of the pandemic and ensure that we invest sustainably and in a way that promotes a better future for our country and our planet.

This should not be seen as a problem, but as a massive opportunity to change the way we meet out peoples’ needs. It will not happen overnight; sustainable infrastructure investment generally takes significant time to propose, plan, refine, approve, design and deliver. However, our government – and governments worldwide – can benefit from leveraging the expertise of the engineers at their disposal. The report confirms a sentiment I have long shared: The engineering sector can and should work proactively with governments and decision makers to help the infrastructure community to invest sustainably and meet the SDGs.

Chris Campbell
CESA CEO