The South African National Roads Agency (Sanral) is considering building more toll roads to cover a R15 billion shortfall over the next decade and fulfil its mandate. When Sanral tabled its annual performance plan in parliament last month, it revealed the R150 billion funding shortfall for the period. Vusi Mona, Sanral’s General Manager for Communications and Marketing, told the media that the roads agency had previously identified a portfolio of non-toll roads in need of major improvements, such as reconstruction with additional lanes, to address current service level constraints on the routes. Mona stated that these improvements, valued at R150 billion, were identified as “viable to implement through the toll financing mechanism.”
He stated that doing so would allow Sanral to accelerate implementation over a four-year period, unlocking significant economic benefits such as job creation while lowering road user costs associated with the improvements much sooner. “Should the implementation of these improvement projects not be possible through the toll financing mechanism, we will require an additional R15 billion per year in non-toll allocation for the next decade to implement these improvement projects, as the current non-toll allocation is insufficient to both sustain and improve the non-toll network,” he said.
Sanral was founded in 1998 and is in charge of maintaining and developing South Africa’s national road network. The agency reports to the Minister of Transport and is funded through a combination of government grants and tolls collected on specific roads. Sanral’s mandate is to maintain and improve the country’s road network, promote road safety, and ensure the efficient movement of people and goods.
Sanral has previously faced significant opposition to its toll road plans, with many South Africans claiming that tolls place an unfair burden on motorists who are already struggling to keep up with rising living costs. Sanral attempted to implement tolls on the Gauteng Motorway Improvement Project (GFIP), a major road upgrade around Johannesburg and Pretoria, in 2012, but was met with strong opposition from motorists who refused to pay the tolls. After several years of legal wrangling and protests, the government eventually stepped in and provided additional funding to cover the cost of the GFIP, effectively eliminating the tolls.
Sanral has since shifted its focus away from tolls, instead choosing to fund its operations through a combination of government grants and loans from development finance institutions. However, the recent announcement by Sanral that it is considering developing additional toll roads suggests that the agency may be turning to tolls as a means of raising funds for its operations once more.
The proposal to build more toll roads has elicited mixed reactions. Some argue that tolls are a necessary evil if South Africa is to maintain and improve its national road network, while others argue that tolls place an unfair burden on motorists, particularly those who are already struggling to make ends meet.
The Organisation Undoing Tax Abuse (Outa) has also expressed concern about the proposal, stating that tolls are frequently used as a cover for corruption and kickbacks. Outa CEO Wayne Duvenage called tolls a “recipe for disaster” and urged Sanral to focus on alternative funding models that are more transparent and accountable.
Despite the opposition, Sanral remains committed to developing additional toll roads, arguing that tolls are a necessary means of raising funds to maintain and improve the national road network. The agency has identified a portfolio of non-toll roads that require significant improvements and believes that tolls are the best way to fund these improvements.