National Treasury has proposed to allocate R23.7 billion from the national fiscus to settle the South African National Roads Agency’s (Sanral) debt and deal with e-tolls once and for all.<\/p>\n
Speaking during the latest Medium-Term Budget Policy Statement (MTBPS), finance minister Enoch Godongwana said that the uncertainty surrounding the Gauteng Freeway Improvement Project, which includes e-tolls, continues to have a major negative implication for road construction in the country.<\/p>\n
The minister said that South Africa’s road network must be brought back up to efficiency and functionality. Since 2013, e-tolls have been met with resistance from motorists – leading to non-payment by many and calls to scrap the system altogether.<\/p>\n
Opposition groups like Organisation Undoing Tax Abuse (Outa) and opposition party, the Democratic Alliance, have called for the scrapping of the system in its entirety.<\/p>\n
In light of this, the finance minister said that the Gauteng provincial government has agreed to contribute 30% to settle Sanral’s debt and interest obligations, while the national government will cover 70% of the debt.<\/strong><\/p>\n “Gauteng will also cover the costs of maintaining the 201 kilometres and associated interchanges of the roads.”<\/p>\n Godongwana noted that any additional investment in the road network would still have to be funded, however. This is up to the Gauteng provincial government to decide.<\/p>\n It suggested that this can be done through:<\/p>\n The finance minister said that any funding given to a state-owned entity will now be subject to strict pre-conditions<\/strong> that must be met prior to the government support being received. “Non-compliance to conditions means no funding.”<\/p>\n The funding is conditional on a solution to phase 1 of the Gauteng Freeway Improvement Project being found – effectively shifting where e-tolling goes from here back to the transport department and Gauteng government.<\/p>\n Godongwana said that the National Treasury is tabling a Special Appropriation Bill to provide additional funding to the South African National Roads Agency (Sanral) in order to allow for it to adjust its business model and restore its long-term financial viability.<\/p>\n This comes after Sanral said that it has been relying on government grants to fulfil its mandate, not the e-toll system. According to the road agency, government assistance has become a significant supplementary source of funding for the toll portfolio over the past three financial years.<\/p>\n Responding to the announcement by the finance minister, Gauteng premier Panyaza Lesufi said that he welcomed the finalisation of the e-toll saga, and that his administration would consult with Sanral on how to repurpose the e-tolling systems.<\/p>\n “The matter of people who have already been paying for e-tolls is in the purview of Sanral.”<\/p>\n Gauteng Premier Panyaza @Lesufi<\/a> welcomes announcement by @TreasuryRSA<\/a> Minister Enoch Godongwana on e-tolls pic.twitter.com\/DTSsLlLLW4<\/a><\/p>\n \u2014 GautengGov (@GautengProvince) October 26, 2022<\/a><\/p><\/blockquote>\n\n
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