South Africa’s metropolitan municipalities are entering a new phase of infrastructure investment, with the 2026/27 budget cycle highlighting a clear shift towards water, sanitation and electricity infrastructure. While roads, transport and housing remain important, metros are increasingly prioritising the rehabilitation and expansion of essential utility networks to address ageing infrastructure, improve service delivery and support economic growth.
Cape Town remains the country’s largest metro construction market, followed by Johannesburg and eThekwini, while some of the strongest growth is emerging in secondary metros such as Ekurhuleni, Tshwane and Buffalo City. Across the country, major investments in wastewater treatment works, bulk water infrastructure, reservoirs, pipelines, substations and electricity networks are creating significant opportunities for contractors, consultants and material suppliers.
The findings suggest that South Africa is entering a municipal infrastructure replacement cycle, where the focus is shifting from new developments towards restoring and modernising critical service delivery infrastructure. As a result, water, power and pipeline-related projects are expected to remain the primary drivers of public sector construction activity over the next three to five years.
Download the full 2026/27 Metropolitan Review here (available to subscribers)
