**South Africa’s Airports Operator Plans Major Infrastructure Investment**
South Africa’s state-owned airports operator, Airports Company South Africa (Acsa), is set to invest approximately 21.7 billion rand ($1.2 billion) in infrastructure over the next year. The company aims to secure around half of this amount through long-term debt instruments and favorable loans, as stated by Chief Financial Officer Luzuko Mbotya in a recent interview.
Acsa’s strengthened financial position has attracted interest from banks and international lenders, making it easier for the company to access capital. Mbotya noted that Acsa’s profits have more than doubled to 1.1 billion rand for the year ending March 2025, indicating a robust appetite for investment in the company. “We are now better positioned to enter the market and secure competitive financial instruments for the 10 billion rand needed for our capital expenditure,” he remarked.
With a cash reserve of 5.9 billion rand, Acsa is focused on modernizing its airport network through 2032. The remaining funds for the infrastructure program will be sourced from operational capital reserves. A significant project includes the construction of a new cargo terminal at OR Tambo International Airport in Johannesburg, with an expected completion date of 2028-29 and a budget of 5.7 billion rand. Acsa’s CEO, Mpumi Mpofu, confirmed that preparatory work for this project has already commenced.
For the upcoming financial year, Acsa has earmarked 2.3 billion rand for refurbishment and rehabilitation projects, a substantial increase from the 727 million rand allocated in the previous year. The company is prioritizing the modernization of its core airport infrastructure to address service breakdowns and operational inefficiencies. Key projects include an extension of the domestic departure lounge at Cape Town International Airport, improvements to the main runway, and upgrades to the gates and domestic arrivals terminal.
In summary, Acsa’s ambitious infrastructure investment plan reflects its commitment to enhancing airport facilities and services, positioning itself for future growth and improved operational efficiency.
**FAQ**
**What is Acsa’s main goal with the infrastructure investment?**
Acsa aims to modernize its airport facilities and improve operational efficiency, addressing service breakdowns and enhancing the overall passenger experience.
