Gordhan said the transfer of public transport services to metropolitan areas will be phased in to allow for a better, more integrated public transport network, including rail and bus rapid transit systems.

He said an additional R4 billion will be given to the Passenger Rail Agency of South Africa to begin purchasing new coaches. The agency also receives R1 billion to build three depots and upgrade signalling in Gauteng, KwaZulu-Natal and the Western Cape.

The move is expected to go a long way in addressing the country’s struggling rail services which are in a dire state due to age. A Cabinet-approved programme to replace the current fleet of passenger trains will be phased in over 20 years.

State-owned satellite company Sentec will receive funding over the next three years towards ensuring a successful migration from analogue to digital television.

In energy, an addition R4.7 billion will be allocated to Eskom for the installation of one million solar water geysers while R600 million goes to municipalities to install energy lighting equipment. R300 million will be set aside to electrify informal settlements.