The Commissioner of the BMA, Dr Michael Masiapto, gave a brief update on PPPs in border management at the Public-Private Partnerships for Defence & Security conference, hosted by the Aerospace, Maritime and Defence Industry Association (AMD) and defenceWeb on 07 March 2025.

The necessity for PPPs in border management arose from several pressing issues. Inefficient border management has significant economic implications, contributing to the expansion of illicit economies while hindering formal economic growth. Uncontrolled migration and cross-border criminal activities, including human trafficking, vehicle smuggling, and narcotics trade, have further exacerbated security concerns.

Given the financial constraints faced by the government, private sector involvement is essential in funding and implementing advanced technological solutions, improving surveillance capabilities, and upgrading infrastructure. Commissioner Masiapato noted that a well-managed border system supports trade facilitation, regional economic integration, and national security.

A significant PPP initiative has been underway since 2014, aimed at redesigning and redeveloping six major commercial ports of entry: Beitbridge, Lebombo, Maseru Bridge, Ficksburg, Oshoek, and Kopfontein. This project, initially managed by the Department of Home Affairs before the establishment of the BMA, sought to transition border posts from security-focused facilities to trade-enabling hubs.

After years of feasibility studies and bureaucratic delays, the evaluation process for bidders began in late 2023, with negotiations and final approvals expected to be completed in 2024. The plan involved phased construction to ensure continuous operations while upgrading infrastructure. To mitigate risk, the bidding process has been structured to prevent any single entity from monopolising multiple large ports.

One key lesson from this process has been the importance of stakeholder co-ordination, noted Masiapato. The success of PPPs in border management relies on cooperation among various government entities, neighbouring countries, and private sector partners. Failure to engage all relevant stakeholders can result in delays and inefficiencies.

Proper project scoping is also critical. Masiapato stated that a comprehensive PPP approach should integrate infrastructure development, technological advancements, and operational improvements. In this case, additional security measures such as fencing and surveillance technology were not initially included, highlighting the need for holistic planning.

Beyond the current projects, Masiapato revealed that future PPP opportunities exist in further modernising the remaining 52 ports of entry. Investments in smart border technologies, including biometric identification, automated processing systems, and surveillance drones, will enhance efficiency and security.

The establishment of a National Targeting Centre, which will consolidate data from various security agencies, has presented another area for private sector collaboration. Additionally, developing staff accommodations at border posts will reduce operational costs and improve personnel efficiency, said Masiapato

Masiapato argued that Public-private partnerships are vital for strengthening border management in South Africa. By leveraging private sector resources and expertise, the government can enhance security, facilitate trade, and address economic challenges associated with illicit cross-border activities. Moving forward, Masiapato believes improved coordination, comprehensive project planning, and technological integration will be key to maximising the effectiveness of PPPs in border security.

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A key aspect of the conference will be the participation of Deputy Minister of Defence and Military Veterans, Major General (Retired) Bantu Holomisa. With his experience in both military and political leadership, Holomisa’s insights will provide perspective on how strategic partnerships can address the challenges facing South Africa’s defence sector. His involvement reflects the government’s focus on fostering a collaborative environment for the defence sector.

Cobus Valentine, Chief Commercial Officer and Head of Product Management at GC²T, stated: “At GC2T, we believe in the importance of collaboration to drive innovation and support South Africa’s defence capabilities. Public-private partnerships are necessary for addressing the challenges our industry faces, and we are committed to supporting this platform, which facilitates meaningful dialogue and practical solutions. By integrating technologies and tailored solutions, we aim to support the defence sector and contribute to national security and economic growth.”

Under the theme Empowering the Defence Sector through Public-Private Partnerships, the PPP Conference 2025 will provide a platform for leaders to discuss strategies, tackle industry challenges, and explore opportunities for job creation and economic development. The event builds on the 2023 conference, offering discussions, expert insights, and networking opportunities.

GC²T’s sponsorship highlights its focus on technological advancements and strategic collaboration. Known for delivering integrated solutions, GC2T provides defence and security stakeholders with tools that enhance decision-making and operational efficiency in demanding environments.

This conference, hosted by AMD in partnership with defenceWeb, is an event for South Africa’s defence and security community. For more information and to register, visit the conference website here.

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What sets the 2025 conference apart is its exceptional Event Advisory Board, comprising distinguished leaders from diverse sectors. These experts will guide the conference agenda, ensuring insightful, impactful discussions that drive innovation, collaboration, and growth.

Advisory Board Highlights

The board’s unmatched expertise reflects the event’s commitment to advancing South Africa’s defence and security landscape. Members include:

• Advocate Vasu Gounden: Founder and Executive Director, Accord – A globally respected leader in peace and security.
• Wilhelm Janse van Rensburg: Research Fellow, Security Institute for Governance and Leadership in Africa; Defence Researcher, Parliament of the Republic of South Africa – Bringing deep insights into security research and governance.
• James Kerr: Owner, Orion Consulting – A trusted adviser in the defence sector.
• Dr. Moses B. Khanyile: Director, Centre for Military Studies (CEMIS), University of Stellenbosch – Renowned for his academic expertise in military science.
• Kobus Marais: Independent Defence and Political Analyst; Former Shadow Minister for Defence and Military Veterans – Offering a critical perspective on defence policy.
• Sandile Ndlovu: CEO, South African Aerospace, Maritime and Defence Industries (AMD) Association – Spearheading innovation and collaboration in the industry.
• Dr. Mthobisi Clyde Zondi: Executive Chair, Sandock Austral Group Holdings – A strategic thinker and industry leader.

The combined expertise of this team ensures a conference experience that is both forward-thinking and practical, addressing the most critical issues facing the industry today.

Organisers invite interested parties to participate by submitting papers, with the call for submissions closing on Friday, 17 January 2025. Proposals can be sent to Ros Hinchcliffe at ros@defenceweb.co.za. Those interested in sponsoring the event are encouraged to contact Robert Mace at robert@defenceweb.co.za for more information.

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“Their demands for up to 30% of contract value undermine the integrity of our procurement systems and delay critical infrastructure delivery,” the Deputy Minister of Finance, Ashor Sarupen, said on Tuesday in Durban.

Addressing the National Construction Summit on site disruption, the Deputy Minister said while the construction industry faces numerous challenges, none is more urgent than the persistent site disruptions by criminal syndicates and community protests.

South Africa’s construction industry is a vital cog in the economy as it contributes around 3% to gross domestic product (GDP), employs over 1.3 million South Africans, with 176 000 jobs added just in the third quarter of 2024.

This sector is a lifeline for low-skilled workers, who often struggle to find opportunities elsewhere, however the disruptions undermine the sector’s potential.

“Construction projects also have an unmatched multiplier effect. For every R1 million invested in construction, more than three jobs are created. This is the highest multiplier across all sectors in our economy.

“It is no surprise that the government has identified infrastructure development as a cornerstone of our economic recovery. The 2024 Medium-Term Budget Policy Statement (MTBPS) reaffirmed our commitment to shifting government spending from consumption to investment.

“This aligns with the President’s call to transform South Africa into a “construction site” to drive inclusive growth and job creation,” the Deputy Minister said.

Over the next three years, government plans to invest over R900 billion in the construction sector.

“Our reforms in procurement, infrastructure investment, and structural economic transformation are concrete commitments to changing the lived realities of millions of South Africans.

“However, to fulfill these ambitions, we must recognize that the construction mafia and site disruptions reveal deeper socio-economic fractures within our country.

“These disruptions are not merely an operational challenge. It is not only businesses that are being disrupted but the lives and livelihoods of our people,” the Deputy Minister said.

They also represent a critical stress test for the broader economic governance architecture, revealing the fragile interdependencies between formal institutional frameworks and reality on the ground.

“For now, these disruptions show how easily our carefully planned economic rules break down when they meet real-world challenges.

“They show just how difficult it is to conduct honest business in an environment of deepening unemployment, poverty, and the desperation it often leads to.

“To address this crisis, we need a holistic response—one that combines stricter law enforcement, improved governance, and community engagement to address the root causes of these disruptions,” Sarupen said.

Government’s intervention

To address these challenges, the government is pursuing a three-pronged strategy, which includes Reforming Public Procurement; Expanding Public-Private Partnerships (PPPs) and Increasing Infrastructure Investment.

“The Public Procurement Act, signed into law earlier this year, lays the foundation for a more transparent, efficient, and inclusive procurement system.

“Under the new regulations, subcontracting will be allowed only where feasible and must follow due process to prevent abuse.

“Government entities will have the option to pay subcontractors directly, eliminating the delays and exploitation often experienced under the current system,” the Deputy Minister said.

He said these reforms are designed to empower small and emerging contractors while safeguarding the integrity of procurement processes.

Government’s R900 billion in planned investments is supported by capital budgeting reforms to ensure that projects are well-planned and implemented on time, mobilising private sector funding to augment limited public resources and prioritising integrated urban development to create dynamic cities that enable economic activity.

“This is not just about bricks and mortar; it is about transforming lives by providing the infrastructure needed for housing, education, healthcare and transport.

“Our efforts to revitalize the construction sector are part of the broader reform agenda under Operation Vulindlela, a joint initiative between the National Treasury and the Presidency,” Sarupen said.

Since its launch in 2020, Operation Vulindlela has delivered significant progress in:

1. Stabilising the electricity supply.
2. Reducing the cost and improving the quality of digital communications.
3. Securing sustainable water supply.
4. Enhancing the efficiency of freight transport.
5. Reforming the visa regime to attract skills and grow tourism.

“Phase 2 of Operation Vulindlela focuses on creating dynamic and integrated cities to support urbanization and economic growth. This will require substantial contributions from the construction sector to build the housing, schools, and transport infrastructure needed for our rapidly growing urban population,” the Deputy Minister said.

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