South Africa has no shortage of ambition when it comes to infrastructure. A recent Nedbank report found that new infrastructure projects announced last year totaled R445 billion – more than double the year before and the largest fixed infrastructure investment since 2021. Each of these promises jobs, growth, and a shot at reversing years of under-investment. But in boardrooms and on project sites, a harsh reality persists none of these ambitions materialise without the machinery that brings them to life.
“Yellow Metal assets are the backbone of project execution,” says Trevor Saunders, Head of the Yellow Metal sector at Merchant West Asset Finance (MWAF). “Without access to the right equipment, contracts stall, deadlines slip, and the country’s infrastructure pipeline remains stuck on paper.”
The Funding Gap Problem
Commercial banks remain the bedrock of project financing – but they are constrained by algorithms, credit appetite, sector exposure limits, balance-sheet ratios, and limited industry-specific knowledge. These safeguards protect lenders but often leave clients short of critical credit facilities.
A typical example: a contractor seeks funding for ten haul trucks, but the bank only finances seven. Or a R40 million mining-package facility takes two to three months to approve – delays that can derail time-sensitive projects.
Saunders notes that while banks are essential as primary funders, their algorithm-driven models and limited asset knowledge inevitably leave gaps. When contractors fall outside their parameters, projects face delays. That is where secondary lenders step in.
Purpose-Built Sector Specialists
MWAF has positioned itself precisely to fill that niche. They identified the need for a sector specialist focused solely on Yellow Metal – and built a team with deep technical understanding of equipment lifecycles, contract-driven asset valuation, and operational risk.
That specialist knowledge means MWAF sees haul trucks not as depreciating assets, but as mission-critical components in “load-and-haul” contracts. When finance terms align with real-world usage, projects move with confidence. Otherwise, risks escalate quickly – and generic funding model’s falter.
Going Beyond Balance Sheets
Banks often stop at balance-sheet ratios. Specialist financiers do not. They examine project pipelines, contract specifics, asset application, and a client’s delivery capability. It is not about replacing banks – it’s about complementing them.
MWAF steps in to bridge the gap – funding the remaining 30% of a fleet when banks only cover 70% and delivering funding in days when project timelines demand it. It is underwriting nuance and execution, not just numbers.
Speed as a Strategic Advantage
In infrastructure, timing is everything. Projects win – or lose – on days, not weeks. Despite this, banks’ approval cycles still stretch into double-digit weeks.
MWAF has made speed a defining capability. Facilities of up to R65 million can be processed in as little as five business days. That speed is not a convenience – it is the difference between execution and collapse.
“Being able to deliver an answer in a week rather than three months is not a convenience,” Saunders adds. “It’s often the difference between a contractor executing or walking away.”
Proof in Action: Two Typical Situations
Here are two situations’ contractors routinely face:
1. Time-critical approvals – When approvals stall, project timelines – and penalties – tick away. In these scenarios, MWAF’s quick response ensures on-time delivery.
2. Partial bank funding – When banks decline to finance the full fleet, MWAF bridges the shortfall, helping clients fulfill contracts, preserve reputations, and keep projects on track.
“These examples show how important speed and flexibility are in our sector,” Saunders notes. “But just as important is knowing the machinery and the industry well enough to act with confidence. That’s what sets us apart.”
The Bigger Picture: Infrastructure Delivery at Risk
South Africa’s infrastructure isn’t just about contracts – it’s about livelihoods. Delayed projects cost more than money; they cost jobs, homes, energy, and economic momentum.
The Auditor-General recently noted that delayed infrastructure projects are increasing costs and constraining service delivery across critical sectors. Government estimates suggest the backlog of such projects has cost the economy billions in recent years. These delays aren’t just statistics – they are stalled economies and deferred futures.
To add urgency, only one-third of South African businesses report having access to credit, underscoring how financially under-resourced many enterprises remain. Addressing finance gaps isn’t optional – it’s foundational for infrastructure to be built.
Conclusion
As South Africa works to rejuvenate its infrastructure ambitions, financing models must evolve too. Banks are indispensable, but their frameworks alone can’t address the complexity of Yellow Metal financing.
Sector-specialist lenders – armed with industry insight, operational context, and rapid execution – are the bridge between vision and delivery. When algorithms say “no,” they empower projects to move forward.
“We built our Yellow Metal team because the sector needed specialists, not generalists,” Saunders concludes. “And we’ve matched that with the speed to act, because in infrastructure, delays are the enemy. That combination is what enables us to go beyond balance sheets – and help deliver South Africa’s infrastructure ambitions.”
South Africa has no shortage of ambition when it comes to infrastructure. A recent Nedbank report found that new infrastructure projects announced last year totaled R445 billion – more than double the year before and the largest fixed infrastructure investment since 2021. Each of these promises jobs, growth, and a shot at reversing years of