The South African National Roads Agency needs the government to decide on the future of electronic tolls in Gauteng province, as the coronavirus cuts its cashflow, the Sunday Times reported.<\/p>\n
\u201cWe\u2019re having to scurry around to ensure our liquidity,\u201d the Johannesburg-based newspaper cited Sanral chief executive officer Skhumbuzo Macozoma as saying. \u201cUntil you solve the the e-tolls problem we won\u2019t get out of this quagmire,” Bloomberg reported, citing the Sunday paper.<\/p>\n
Macozoma said the decision on whether to keep the system or scrap it rests with President Cyril Ramaphosa\u2019s cabinet. Only about 20% of users are paying e-tolls, the Sunday Times said.<\/p>\n
If canceled, Sanral\u2019s debt related to the Gauteng Freeway Improvement Project will jump from around R40 billion to R67 billion.<\/p>\n
South Africa\u2019s lockdown to curb coronavirus cost Sanral more than R620 million, the Sunday Times said.<\/p>\n
Mixed signals<\/strong><\/p>\n Government representatives have given conflicting accounts on the future of the e-toll system.<\/p>\n Transport minister Fikile Mbalula said in June that the controversial\u00a0 system has had an impact on the country’s ability to raise external capital.<\/p>\n Mbalula said that Sanral and other roads agencies have been adversely affected by the country’s coronavirus lockdown.<\/p>\n “Sanral not only suffered from loss of revenue but delays in capital projects have also had an adverse effect. Sanral’s access to capital markets is limited as a result of a downgrade earlier in the year.<\/p>\n “You know we are dealing with a very difficult issue in the country which is the e-tolls. That has actually affected our capacity to borrow in the bond market to favour Sanral’s position.”<\/p>\n He added that this had a knock-on effect on other capital projects – such as potholes and the development of the new Moloto road.<\/p>\n “Those who borrow money say that they don’t care whether ‘the cat is black or white’ as long as the decision is taken around e-tolls. That is what brings certainty to Sanral and its credibility to borrow over time.”<\/p>\n