The report argues that this undermines growth, infrastructure development, and the long-term transition to clean energy.
The 284-page report, titled Transformation of SA’s Monetary Architecture, 1983–2024, argues that a sweeping redesign of the country’s financial architecture could unlock as much as $293 billion for infrastructure investment and the energy transition. Commissioner Mark Swilling told Channel Africa, on Wednesday, that the report was inspired by the need to quantify what it would cost to achieve the goals outlined in the National Infrastructure Plan 2050.
“We identified a significant gap between current investment levels and what will be required to ensure energy security, water security, and digital modernisation through to 2050,” he explained. “Given that fiscal and monetary policies are unlikely to shift dramatically, we needed to find new mechanisms to mobilise capital.”
The report finds that SA has failed to reach the National Development Plan target of investing 30% of GDP in gross fixed capital formation. The highest level recorded was around 20% in 2008–2009, with investment now having dropped below 15%. Swilling links this decline to state capture, the weakening of state-owned enterprises, and a breakdown of trust between government and the private sector.
Private investors, he noted, remain willing to fund privately owned energy generation but remain hesitant to channel capital into municipal infrastructure or Eskom-owned assets.
The report also highlights how extreme wealth inequality has deepened. Asset ownership remains highly concentrated, with the elite, still largely white, holding the bulk of financial wealth. Meanwhile, the majority depend heavily on public transfers, with around 60% of the national budget directed toward poor households.
Swilling argued that part of the problem is a limited national understanding of how the financial system functions as a complex network of balance sheets, institutions, and flows. This, he said, has contributed to weak policy direction on both investment and wealth redistribution.
He emphasised the need for targeted interventions, particularly for woman-headed households and small businesses, which continue to struggle to access credit despite their economic potential.
–ChannelAfrica–
