The article “The real purpose of loans to Africa by international institutions” (DD, Nov 25) drew my attention.
The article’s central argument is that such loans bring no sustainable development, yet it is a perspective I must respectfully but firmly disagree with.
From my experience, forged over 15 years in the construction sector as an operations manager, the conversation should not be about if we need finance, but how we can leverage it more effectively to build the SA our people deserve.
My career has been spent on the frontlines of our nation’s key developments, working on critical infrastructure projects for the department of transport, OR Tambo District Municipality, and department of water affairs, to mention a few.
I have seen first-hand the tangible difference and excitement a completed school, a new clinic, or an upgraded road makes to a community.
But I have also witnessed, time and again, the devastating collapse of these very projects due to one recurring enemy — the non-availability of funds or late payments.
I have seen half-built schools stand as silent, crumbling monuments due to delayed Treasury approvals.
I have watched road upgrade projects stall, not for a lack of engineering skill or local labour, but because the financial pipeline from the national government ran dry.
These delays are not just administrative hiccups, they create a massive negative ripple effect across an entire region.
When a project stalls, it is the local labourer who goes unpaid and hungry, the local sub-contractor who faces ruin and debt, and the local business supplier whose stock gathers dust and who starts retrenching workers.
The promise of development turns into a source of economic despair.
SA, by any measure of infrastructure development, remains a nation playing catch-up like many other developing countries.
We are a country of breathtaking beauty but Mother Nature is unpredictable and our foundational systems are straining.
To grow fast and to grow inclusively, we must focus on mega projects that form the bedrock of a modern economy.
We need to build new dams and wastewater treatment works to secure our water future.
We must upgrade our railways, bus transits and airports, and expand systems such as the Gautrain to connect citizens to opportunities.
We need to build more universities and TVET colleges to equip youth with the skills for the 21st century.
Where will the capital for this ambitious future come from?
Our fiscus is stretched, and as my experience has shown, even essential provincial projects can be paralysed by bureaucratic processes that take more than 90 days.
This is where strategic borrowing from international institutions such as the World Bank and the International Monetary Fund becomes not a liability, but a critical catalyst.
The critique that these loans are a trap often overlooks the rigorous processes involved.
I am not a finance expert, but my recent studies in Africa-China banking have reinforced a fundamental principle: lenders require viable business plans.
When our government applies for these loans, it is required to submit detailed needs analyses, case studies and business plans.
This discipline forces a clarity of purpose. It requires us to precisely articulate the plight of people and present a credible strategy for changing their lives for the better.
This external scrutiny can be a powerful tool for ensuring projects are well-conceived and accountable.
The true purpose of this finance is to break the cycle of underdevelopment.
When SA businesses are supported by a government that provides sufficient, reliable infrastructure — be it in energy, water, roads or sewer systems — they thrive.
We have seen how economies explode when supported by strong city infrastructure management.
Strategic loans can accelerate the implementation of these projects, creating a virtuous cycle of employment, skills development and economic activity that far outweighs the cost of borrowing.
Having recently graduated from programmes focused on international finance and engineering, I see the intersection of these fields as the key to our future.
I believe and trust that our government can and will present a compelling case to the world.
We must showcase our needs with transparency and our plans with precision. The loans themselves are not the end goal, they are the means.
The real goal, the purpose we must all unite behind, is the development of our nation — the schools that educate our children, the clinics that heal our sick, the roads that connect our communities and the water that sustains our lives.
Let us not be paralysed by a fear of finance. Let us instead be strategic, accountable and bold in harnessing it to build the SA we know is possible.
Cwenga Sigwili, operations manager in the construction industry, a graduate of the Africa China Banking programme with Standard Bank, and a graduate with Wuhan Vocational College of Software and Engineering.
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