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Measuring the Real Impact of Infrastructure

13th July 2026

     

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The central question is no longer how much infrastructure we build, but whether it meaningfully improves lives. 

Infrastructure is widely recognised as the backbone of economic development. But in South Africa’s current context; marked by deep inequality, high unemployment, and growing Environmental, Social, and Governance (ESG) expectations; it is no longer enough to deliver projects. What matters is impact. 

Economic development in South Africa cannot be reduced to the gross domestic product (GDP) growth. It must be understood as a process of transformation: reducing inequality, expanding opportunity, and building resilient local economies. Infrastructure enables participation by connecting people to jobs, markets, and services. 

Programmes such as the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) have demonstrated that infrastructure can deliver more than core outputs. Beyond adding capacity to the grid, such initiatives have created jobs, supported skills development, and enabled community participation. However, these outcomes are only visible because they are measured. 

This is where impact measurement becomes essential. 

Articulating Economic Development Impact 

A meaningful assessment of economic development requires a multi-dimensional approach. Economic indicators such as investment levels, procurement spend, and GDP contribution provide one layer of insight. Social indicators, including job creation, skills development, and access to services, capture the human dimension of development. Environmental metrics align infrastructure with climate commitments, while localisation measures track the extent to which investment strengthens domestic capacity. 

In a resource-constrained environment, every investment must deliver maximum value. Measuring impact allows policymakers, investors, lenders, and developers to understand what works, refine strategies, and ensure accountability. It shifts the focus from inputs, such as capital expenditure, to outcomes such as employment, local economic participation, and long-term sustainability. 

Equally important is recognising the difference between direct and indirect impact. Direct impact includes jobs created and infrastructure delivered. Indirect impact extends into supply chains, local enterprise development, and broader regional growth. Without capturing both, the true value of infrastructure remains understated. 

Evidencing Economic Development Impact 

Data only becomes meaningful when it is translated into insight. This requires robust methodologies, consistent definitions, and alignment with national priorities. It also requires a balanced approach that combines quantitative metrics with qualitative evidence, such as community experiences and case studies. 

Different stakeholders require different narratives. Government looks for policy alignment and fiscal impact. Investors prioritise risk, return on investment, and ESG compliance. Communities are concerned with tangible change; jobs, small business opportunities, services, and the resilience of local economies. For them, infrastructure is meaningful only when it transforms daily life. 

Economic development should therefore be assessed based on these lived outcomes, rather than solely on delivery metrics. Effective communication must be nuanced and responsive to each of these perspectives. 

Credibility, however, ultimately depends on evidence. Impact claims must be supported by transparent reporting, monitored against clear benchmarks, and validated through independent processes. Embedding these requirements into project design ensures that accountability is not an afterthought, but a core component of delivery. 

Quantifying Economic Development Impact 

The Gautrain project provides an instructive example of how infrastructure can deliver measurable, multi-dimensional impact. Beyond its core transport function, the project has generated employment, supported skills development, and stimulated economic activity in areas 

surrounding its stations. Increased property development, improved mobility, and reduced congestion demonstrate how infrastructure can reshape urban economies when outcomes are intentionally tracked and managed. 

According to reports published by the Gautrain Management Agency (GMA), the project tracked multiple economic indicators across both its construction and operational phases (GMA, 2019). During construction alone, approximately 35,000 direct jobs were created for South African citizens. Of these, 3,800 [11%] were filled by women, 29,900 [85%] by Historically Disadvantaged Individuals (HDIs), and 20,300 [58%] by young people (GMA, 2019). 

Further to the Gautrain case study, the REIPPP Programme provides a compelling example of how impact in large-scale infrastructure projects can be measured and evidenced in practice. 

Quarterly IPP Office reports indicate that as of 30 June 2025, 88 317 job-years have been created for South African citizens through the REIPPPP programme. Procurement data for this period further illustrates the scale and inclusivity of economic participation. Since inception, B-BBEE-accredited suppliers account for approximately R111 billion (84%) of total procurement spend – R89.7 billion in construction and R42.4 billion in operations. In addition, R43 billion (32%) of total procurement spend has been directed towards Exempted Micro Enterprises and Qualifying Small Enterprises, with R28 billion in construction and R15 billion in operations, and an estimated 7% of total procurement is directed towards women-owned vendor spend. This highlights the programme’s role in supporting small business development, inclusive supplier development, and the deepening of local value chains in the renewable energy sector. 

ED Platform has worked with partners to track both direct and indirect impacts of infrastructure investments, ensuring that outcomes such as local enterprise development and community resilience are captured alongside both traditional and non-traditional economic indicators. Traditional measures like GDP contribution, investment levels, and procurement spend remain essential for macroeconomic stability and investor confidence. Yet non-traditional indicators such as youth employment, gender participation, skills development, environmental sustainability, socio-economic improvements and access to services are equally critical to ensuring that growth is inclusive, sustainable, and transformative. 

An example of socio-economic development impact is the CPV1 Solar Project in Touwsrivier, which installed solar systems at local schools, lowering operational costs and improving access to reliable energy (GreenCape, 2020). This not only enhanced learning environments but also 

created local employment and skills development opportunities. As of June 2025, REIPPP projects in operations have contributed R1 billion in Enterprise Development spend and R3.4 billion in Socio-Economic Development spend across the country, this is in line with the socio-economic transformation agenda and the economic policies of South Africa. 

As South Africa and the broader African continent continue to invest in energy, transport, and social infrastructure, the focus must shift from delivery to outcomes. Success should not be measured by the number of projects completed, but by the opportunities created and sustained over time. 

Measuring, articulating, and evidencing impact is how infrastructure moves beyond compliance to real economic change; an approach central to ED Platform’s practice and methodology. Economic development advisors play a critical role in helping IPPs, developers, and investors not only meet their commitments but also capture and communicate the true value of infrastructure-led growth. 

When impact is measured with purpose, infrastructure becomes more than a physical asset; it becomes a foundation for trust, accountability, and lasting economic transformation. South Africa’s infrastructure moment is now. The question is whether we will measure it well enough to make it count. 

ED Platform is a member of SAWEA

Edited by Creamer Media Reporter

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