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Six consortia to modernise South Africa's busiest border posts with R12.5bn investment

Hope Ntanzi|Published

Six bidders have been appointed to redevelop South Africa’s busiest land ports under a R12.5bn PPP aimed at improving border efficiency, security, and regional trade movement.

Image: GCIS

Six consortia have been selected to redevelop South Africa’s six busiest land ports of entry under a R12.5 billion Public-Private Partnership.

The Department of Home Affairs and the Border Management Authority (BMA) made the announcement during a media briefing on Tuesday, stating that the project aims to overhaul border infrastructure and modernise border management systems.

The redevelopment will cover Beitbridge, Lebombo, Oshoek, Kopfontein, Maseru Bridge, and Ficksburg ports of entry, which together account for more than 80 percent of cross-border trade and passenger movement through South Africa’s land borders.

Home Affairs Minister Dr Leon Schreiber said the initiative forms part of a long-term reform programme to modernise immigration and border management into a secure and integrated system.

“Today we take the next step on our journey to reform South Africa’s immigration and border management system into a modern, secure, efficient and truly world-class institutional ecosystem,” Schreiber said.

He said the programme has been implemented over the past 22 months, with a strong focus on digital transformation, including the Electronic Travel Authorisation (ETA) system.

“The bulk of that work has rightly focused on the wholesale technological overhaul of immigration and border management systems and processes, including the flagship Electronic Travel Authorisation (ETA) system,” he said.

Schreiber said the infrastructure component of the programme was developed through collaboration between Home Affairs, the BMA, National Treasury, the Department of Public Works and Infrastructure, SARS, and transaction advisors.

“The diligent work that has brought us to this moment was done through collaboration between the Department of Home Affairs, the Border Management Authority, National Treasury, the Department of Public Works and Infrastructure, the South African Revenue Service, as well as the transaction advisors who have travelled this journey with us,” he said.

He said the six ports are central to regional trade and economic activity, handling the majority of cross-border movement.

“Together, they account for over 80 percent of cross-border trade and passenger flows through South Africa’s land borders. Their performance has a direct impact on economic growth, revenue collection, and national security,” Schreiber said.

He said years of congestion, outdated infrastructure and fragmented systems have reduced efficiency and increased costs.

“Congestion, outdated infrastructure, and fragmented systems have slowed down trade and increased the cost of doing business,” he said.

Schreiber warned that these weaknesses have been exploited through illicit activity.

“Weaknesses have been exploited through illegal migration, illicit trade, and fraudulent practices that undermine both revenue collection and the rule of law,” he said.

He further stated that the redevelopment marks a shift toward integrated, technology-driven border management.

“The project we launch today, therefore, represents the start of a new era in South African border management, further building upon the digital transformation programme that is now well underway across the immigration ecosystem,” Schreiber said.

He added that government is moving away from fragmented systems toward integrated operations supported by modern infrastructure.

He said the reforms also align with commitments made by President Cyril Ramaphosa to combat illicit trade and organised crime.

Schreiber said the expected impact includes reduced congestion, faster processing times and improved trade efficiency.

“These improvements go directly to the heart of economic growth,” he said. He added that stronger border systems will also improve enforcement and revenue collection.

“This will improve our ability to combat illicit trade, prevent the use of fraudulent documentation, and address non-compliance,” Schreiber said.

He said the initiative will also strengthen state capacity and support job creation.

“This initiative will also create local opportunities for job creation and economic development, both during construction and during ongoing operations,” he said. 

Masiapato announced the six successful consortia appointed after a competitive procurement process concluded in 2025.

He said the process was supported by a multidisciplinary team including Ernest & Young as financial advisors, Bowman as legal advisors, Knight Piesold as technical engineers, and Bonakude Advisory as probity auditors.

He added that government departments, including Home Affairs, Public Works and Infrastructure, the Development Bank of Southern Africa (DBSA), and Infrastructure South Africa also participated.

Masiapato said a value-for-money report had been submitted to the National Treasury, with negotiations now at an advanced stage ahead of final approvals, financial close, and construction.

Schreiber confirmed the successful bidders as follows:

Beitbridge: Baobab Concession (Yakani Group, Wendra Infraco, Matla Integration, Tau Capital, Navigator Holding and Baobab Community Trust)

Lebombo: Raulux Consortium (Luxus Developments, Raubex, Exhantini Investments, Vulindlela Concessions and Harith General Partners)

Oshoek: Baobab Concession

Maseru Bridge: Kgorong Consortium (Motseng Concessions, IDEAS Infrastructure, Crowie Concessions and Thebe SPV)

Kopfontein: Kopfontein Consortium (Talis Property Fund, Unik Civil and Construction Engineers and SSG Facilities)

Ficksburg: Imbani Consortium (Imbani Projects, Reaga Infra Border Holdings, M&M Capital and Russet Trading and Investments)

Masiapato said construction is expected to begin later this year or early next year, with phased implementation over two to three years.

He said government will intensify consultations with communities, municipalities, traditional leaders, business chambers and cross-border traders ahead of construction.

Engagements with neighbouring countries, including Zimbabwe, Mozambique, Eswatini, Botswana and Lesotho, are also underway to support the implementation of One-Stop Border Post systems and a Common Control Zone framework.

Masiapato added that the concessionaires will finance the projects through commercial borrowing, with government repayments structured through a Unitary Payment Model under a build-operate-transfer arrangement.

He said the PPP model strengthens governance and reduces risks in public procurement.

“Given the complexities and vulnerabilities of supply chain management processes, this Public Private Partnership model is seen as a critical strategy to close vulnerabilities and reduce opportunities for corruption,” he said.

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