Blog

Government announces details for end of e-tolls in Gauteng

 

MEDIA RELEASE

Government announces details for end of e-tolls in Gauteng

Centurion, 10 April 2024 – The South African government has announced final details of the scrapping of e-tolls in Gauteng, paving the way for long-term maintenance and development of freeways in the country’s economic capital. The e-toll gantries will be switched off at midnight tomorrow (Thursday), meaning that road-users will no longer be charged for using the freeways in Gauteng.

Transport Minister Sindisiwe Chikunga and Gauteng Premier Panyaza Lesufi, as well as the leadership of the South African National Roads Agency Limited (SANRAL), hosted a media briefing this (Wednesday) morning at SANRAL’s Central Operations Centre in Centurion to provide the public with details of the scrapping of e-tolls.

Minister Chikunga said the notice she had published in the Government Gazette at the end of March to withdraw the toll declaration for the Gauteng Freeway Improvement Project laid the ground for the gantries to be switched off.

“This declaration will be effective on 11 April 2024 at 23h59, which means that from 12 April 2024, road users will no longer be charged for the use of the e-toll network.  This means that after midnight tomorrow (Thursday), e-tolls will no longer exist,” said Minister Chikunga.”

“The roads that form part of the Gauteng Freeway Improvement Project (GFIP) will remain national roads and will continue to assist in facilitating economic growth in Gauteng, in turn stimulating the South African economy.”

Minister Chikunga said the announcement made by the Minister of Finance, Enoch Godongwana, in his 2022 Medium-Term Budget Policy Statement that e-tolls would be scrapped had set in motion a lengthy process towards the point at which government was finally switching off the gantries at midnight tomorrow.

“Between myself, as Minister of Transport, the Minister of Finance, Mr Enoch Godongwana, and the Premier of Gauteng, Mr Panyaza Lesufi, we finally reached agreement towards the end of March on how to conclusively deal with the debt resulting from e-tolls and, as a result, we were able to sign a Memorandum of Agreement (MOA) to formalise alternative funding solutions for the GFIP debt repayment and deal with the backlog of maintenance and rehabilitation costs.”

Minister Chikunga said government was still in discussion regarding the historical debt owed by motorists.

Gauteng Premier Panyaza Lesufi said the provincial government and residents of Gauteng were extremely happy with the agreement to end e-tolls and had committed R4.1 billion as the Gauteng Government’s contribution towards the maintenance backlog of GFIP roads, adding that the provincial government had a deep interest in Phases 2 and 3 of GFIP.

“We are more than excited with the agreement that has been reached because it means that Gauteng will benefit from the entire GFIP project over the longer term. We have a keen interest in the gantries and the cameras which go with them. Those cameras are crucial in the fight against crime. We want them connected to our Provincial Integrated Command Centre,” said Premier Lesufi.

SANRAL CEO Reginald Demana said the national roads agency was pleased that the Memorandum of Agreement to end e-tolls had unlocked borrowing limits in the bond market. “The dispute over e-tolls prevented us from accessing private funding because we didn’t have the requisite borrowing limits. Treasury has now approved the borrowing limits and investment in our freeways will unlock further investment as can be seen with the Waterfall development in Midrand and many other road infrastructure projects which will spur economic development in and around Gauteng and indeed across the country.”

Minister Chikunga said the process of scrapping e-tolls had not been easy and thanked South Africans for their role in assisting government to reach the point at which the gantries will be switched off tomorrow.

**A detailed FAQ document below.

INFORMATION PACK

ACCOUNT HOLDERS WITH UP-TO DATE ACCOUNTS

  1. When will e-toll collection stop?

The collection of e-toll fees will stop at 23:59:59 on 11 April 2024.

  1. Do motorists still need to pay e-toll fees?

Yes, motorists still need to pay their e-toll fees until I23:59:59 on 11 April 2024. t is a legal obligation to pay tolls when using toll roads.

  1. What do motorists need to do once e-tolling has been cancelled?

Motorists do not need to do anything when e-tolling is cancelled. All processes are automated.

  1. Will the e-toll tag still work at conventional toll plazas or must motorists open a new account?

The SANRAL account will still be valid, and motorists can use their tags as a toll payment method at all conventional toll plazas. Accounts will remain active and working as long as the Mobility/Tag Account has sufficient funds and is topped-up.

  1. Will the tag still work at the mall to pay for parking, or must a new account be opened?

The SANRAL account is still valid and has sufficient balance and motorists can use their SANRAL account, if it is linked to an e-tag, as a parking payment method at the participating malls. A list of the malls is available on the SANRAL App.

  1. Will motorists be refunded e-toll fees that they have paid? If so, how? If not, why not?

As the implementing authority, SANRAL has not received any information regarding the re-funding and/or prosecution of outstanding e-toll fees. Once an instruction has been received in this regard from its political principle, SANRAL will inform its customers accordingly.

  1. Why are motorists still receiving e-toll invoices even though e-tolls are cancelled?

The e-toll invoices will be rolled up until the last day being 11 April 2024, 23:59:59 and road users are obligated to pay toll until this period and t invoices will be issued containing all transactions up until that date and time. Due to potential delays with the postal system, invoices till the closure will be received some time after the 12th of April 2024.

Account holders that make use of a e-tags at conventional toll plazas will still receive their statements for those transactions via email or online After 11th April 2024, 23:59:59 there will be no e-toll transactions that appear on your invoice or statement.

  1. Now that e-toll is cancelled, can motorists still pay their outstanding e-toll fees?

Yes. E-toll fees incurred up to the day of cancellation can still be paid at any customer service touch point.

 

NON-ACCOUNT HOLDERS and ROAD USERS WITH ACCOUNT IN ARREARS / THAT STOPPED PAYING

  1. Will motorists still need to pay their outstanding e-toll fees even though e-toll is cancelled?

As the implementing authority and in terms of Treasury Regulations SANRAL has an obligation to take effective and appropriate steps to collect all money due to it. Until advised otherwise, this remains the SANRAL position.

  1. Will those who have outstanding e-toll fees be prosecuted?

In March 2019, the SANRAL Board took a decision that the entity was no longer going to pursue criminal action against motorists with outstanding toll debt. That decision still stands.

  1. Why are motorists still receiving e-toll invoices even though e-tolls are cancelled?

The e-toll invoices will be rolled up until the last day being 11 April 2024, 23:59:59 and road users are obligated to pay toll until this period and t invoices will be issued containing all transactions up until that date and time. Due to potential delays with the postal system, invoices till the closure will be received some time after the 12th of April 2024.

  1. Motorists have received a letter of demand for e-toll fees some time ago. What must they do now?

A letter of demand serves as notification of outstanding e-tolls obligations as at date of being sent and should be acted upon accordingly.

  1. Now that e-toll is cancelled, can motorists still pay their outstanding e-toll fees?

Yes. E-toll fees incurred up to the day of cancellation can still be paid at any customer service touch point.

  1. How and where can I register for a new account, and will I be charged for my outstanding e-toll transactions?

New accounts can be registered on the web, Self-service terminals, mobile app, SANRAL call centre and Customer Service Centres. It is important to note that all accounts registered after the 20th of April 2024 will not incur historical e-toll transactions.

 

CUSTOMER SERVICES

  1. How do I contact customer services for my mobility account/ tag account?

All customer service points remain open for Mobility/ Tag Account holders.

  • Phone the Call Centre on 0800 726 725 (6am – 10pm, 7 days a week)
  • Visit our Customer Service Centres located in selected malls in Gauteng and along the Gauteng Freeway, as well as at most Toll Plaza Offices across the country.
  • Via SANRAL Mobile App (This can be downloaded from your Android, IOS or Huawei Gallery).
  • Online, at http://www.sanral.co.za/e-toll.
  • E-mail info@sa-etoll.co.za.
  1. Now that e-toll is cancelled I would like to open an account, how can i do that?
  • On the SANRAL Mobile App (downloaded from your Android, IOS or Huawei Gallery),
  • Online, through our e-toll website,
  • At selected Mainline Toll Plaza’s across South Africa,
  • At Self-Service Terminal (SST) devices at the following toll routes:

-Total Energies Petroport Panorama West, N1, Doornpoort.

-Total Energies Petroport Magalies, N4, Modderspruit.

-Shell Ultra City Kroondal East, N4, Kroondal.

  • Total Energies Petroport N4 Alzu.

 

GAUTENG OPEN ROAD TOLLING SYSTEM and OPERATIONS

  1. What will happen to the e-toll system?

The Transaction Clearing House, the core of the e-toll system, is already being used for more than the collection of e-tolls and additional functionalities are being investigated.

The current applications are:

  • Electronic toll fee transaction clearing and SANRAL account management for road users that make use of a tag as a payment method, at conventional toll plazas.
  • A parking payment solution where a SANRAL account holder can opt in on the SANRAL App to pay for parking by using their Vehicle Licence Plate Number. SANRAL has entered into partnerships with Service Providers (such as Admyt) that have infrastructure installed at parking facilities in Gauteng. It is envisaged that this will ultimately be expanded nationally.
  • Law enforcement endevours, e.g. Average Speed Over Distance (ASOD) notifications are available to SANRAL account holders that have opted in on the SANRAL App to receive notifications where they have exceeded the speed limited between two toll gantries on the Gauteng e-roads. Currently, the notifications are for information purposes only and not for infringements. Duplicate and cloned number plates can be identified when vehicles with the same vehicle licence plate number are at two different locations with the same vehicle licence plate number, etc.
  • Account Based Ticketing solution, where one fare card can be used as a payment method with different Public Transport Operators (PTOs). This solution is facilitated by SANRAL, in conjunction with the NDOT and in partnership with Public Transport Operators and Municipalities. The past year has seen the implementation of two Pilot projects, namely Rustenburg Municipality and Polokwane Municipality.
  1. What is going to happen to the e-toll gantries?

The gantry lights and cameras will remain on as they will continue to be operational for road safety purposes. Notifications are available to SANRAL account holders that have opted in on the SANRAL App to receive notifications where they have exceeded the speed limit between two toll gantries on the Gauteng e-roads. Currently, the notifications are for information purposes only and not for infringements.

  1. Why is the tag still beeping at the e-toll gantries even though e-toll is cancelled?

The beep will be phased out. Where such still occurs after the switch-off, motorists should not be concerned as they will not be charged post the official switch-off.

  1. Why is the e-toll website still active even though e-toll is cancelled?

The e-toll website will be updated with respect to the cancellation however the SANRAL Mobility/Tag Account functionality for services i.e. interoperability at other toll plazas and parking will still be available on the website.

  1. Why are the e-toll shops still open even though e-toll is cancelled?

The e-toll shops are still open as the e-tag can be used for toll payment at conventional toll plazas and the SANRAL/ Mobility/Tag account can be serviced at the shop where full customer services are available. The e-toll branding will be removed in phases.

  1. What is the status of the operations tender for the e-toll system?

The operation tender was cancelled, following the announcement by the Minister of Finance during his MTBPS in October 2022.

  1. Will KTC’s (operations contractor) contract be renewed? If so, why?

The current operational contract ends on 15 June 2024.

  1. Will a new operations tender be issued? If so, when?

SANRAL is currently reviewing what the impact on the e-toll system will be due to the cancellation of e-toll and its existing and future planned Value-Added Services projects, to determine if, when and in what format these services will be provided, before the way forward can be determined.

  1. What is going to happen to the staff?

A team of experts is currently reviewing what the impact on the operations will be due to the cancellation of e-toll and its existing and future planned Value-Added Services projects, to determine if, when and in what format these services will be provided, before the way forward for the staff can be determined. All parties in following due process are committed to ensure the best interests of the staff and will communicate accordingly.

 

TOLL

  1. Why is Gauteng Province paying for SANRAL’S debt?

This is part of an agreement between National Treasury, Gauteng Province and the Department of Transport. Gauteng Province will pay 30% towards SANRAL’s debt on GFIP in order for e-toll to be cancelled.

  1. What will happen to other toll plazas in South Africa?

There will be no changes to the conventional toll plazas in South Africa. The user-pays principle remains, as does tolling as a policy.

  1. Is the user-pays principle still relevant?

Yes. The user-pays principle (in this case the collection of toll fees for the use of a road) is a sustainable funding model. Through borrowings from capital markets, it allows for funds to be available when they are required, rather than waiting for funds to be made available from the central fiscus. The appropriate toll fee is determined during the planning phase of a toll project and is calculated to ensure that there are sufficient funds for the initial construction costs and servicing of that debt, as well as for the future operations, maintenance and upgrades for the specific road. Toll income is ringfenced and may only be used for toll roads and ensures that the declared toll roads are in a good condition.

  1. What is the total outstanding debt?

The overall debt at year end was R42, 405 billion (audited) as of 31 December 2023, the debt was R29, 055 billion (Nominal terms).

  1. How much money has SANRAL received from account holders in the last year, what happened to the money?

For the 2023 financial year, R589,411 million.

The funds received from the toll portfolio is used to pay for, inter alia, outstanding debt, maintenance and operations.

 

BORROWING ON THE BOND MARKETS

  1. What is the bond market and how does it benefit motorists?

The bond market enables government to borrow money to implement projects faster. Motorists can receive quality roads faster, thus saving time and on vehicle maintenance. Government has limited money. Therefore, it cannot implement all important projects without borrowing.

  1. What is the significance of the bond market?

Without a bond market, projects would take time to be implemented, as government will need to save enough money before a project is implemented which would take time.

  1. Now that we will go back to the bond market, we will unlock those projects and impact positively in the construction industry. Therefore, what are SANRAL’s borrowing limits?

SANRAL’s borrowing limits from National Treasury is R16.5 billion.

 

//Ends

 

Media contacts:

Collen Msibi

National Spokesperson Ministry of Transport

066 476 9015

 

Sizwe Pamla

Spokesperson Gauteng Premier

060 975 6794

 

Lwando Mahlasela

Media Relations Manager SANRAL

082 440 5305

Cancellation of the closure of the N3 between Key Ridge and Hammarsdale

TRAFFIC ADVISORY

Cancellation of the closure of the N3 between Key Ridge and Hammarsdale

Durban, 10 April 2024 – The closure of the N3 planned for 10 April 2024, between the hours of 14h30 and 15h00, has been cancelled, the South African National Roads Agency SOC Limited (SANRAL) has announced.

“The N3 closure planned for today, 10 April 2024, has been cancelled due to machinery breakdowns. The closure will be reprogrammed for a future date, which will be communicated well ahead of time to all stakeholders. We apologise for any inconvenience caused due to this late notice,” said Jason Lowe, SANRAL’s Eastern Region Project Manager.

//Ends

Huguenot Tunnel Open

TRAFFIC ADVISORY

Huguenot Tunnel Open

Western Cape, 8 April 2024 – The Huguenot Tunnel is now open to all vehicle classes in both directions, the South African National Roads Agency SOC Limited (SANRAL) has announced. This follows a temporary closure on the weekend, due to strong winds on the viaduct (long bridge-like structure) leading to and from the tunnel.

Despite continued windy conditions, emergency services were able to recover a blown over vehicle on the viaduct, which was obstructing traffic.

“Late on Sunday night, the tunnel was opened to light motor vehicles only and by this morning we were able to open to all vehicle classes. We wish to express our gratitude to all emergency and law enforcement teams who worked tirelessly to ensure we get traffic moving again,” said Mike Vinello-Lippert, SANRAL’s Project Manager for the Huguenot Tunnel.

SANRAL appeals to road users to exercise caution as wet and windy conditions prevail across the Western Cape.

//Ends

 

Huguenot Tunnel closed due to strong wind

TRAFFIC ADVISORY

Huguenot Tunnel closed due to strong wind

Western Cape, 7 April 2024 – The Huguenot Tunnel has been temporarily closed to all traffic, due to strong winds on the viaduct (long bridge-like structure) leading to and from the tunnel, the South African National Roads Agency SOC Limited (SANRAL) has announced.

Amid high wind speeds which started yesterday, and wind gusts with speeds in excess of 90km/h, a truck lost its load when the wind blew the trailer component off the viaduct and into the valley below. Strong winds have hampered recovery operations of another blown over vehicle on the viaduct and the tunnel was closed to all traffic until the obstruction on the viaduct has been removed.

The driver of the truck that blew over, managed to exit the vehicle in time and was unharmed.

Provincial traffic is on hand to direct traffic via alternative routes.

“We appeal to road users to exercise caution under these circumstances and to avoid the area where possible, especially given the increase in wind speeds today,” said Mike Vinello-Lippert, SANRAL’s Project Manager for the Huguenot Tunnel.

SANRAL will keep road users updated on the tunnel operations.

//Ends

Traffic disruptions expected as upgrades to CB Downes Road on the N3 begin

TRAFFIC ADVISORY

Traffic disruptions expected as upgrades to CB Downes Road on the N3 begin

Pietermaritzburg, 5 April 2024 – Motorists will experience traffic disruptions daily from 18h00 to 05h00 as the rehabilitation of the CB Downes Road (R103), between Shortts Retreat Road and Market Road, will commence on 11 April 2024 and end on 6 June 2024.

To ensure minimal impact to motorists and businesses, the works will only be carried out between the off-peak hours of 19h00 and 05h00 and under stop-and-go closures. Daytime traffic will flow as normal.

“These upgrades are undertaken as part of SANRAL’s commitment to improve alternative routes to the N3 while it is under construction and as part of the N3 Upgrade Project from Gladys Manzi Road to New England Road Interchange. The contractor’s traffic accommodation team, with the support of the Road Traffic Inspectorate (RTI), will oversee traffic management activities throughout the project,” said Jason Lowe, SANRAL’s Eastern Region Project Manager.

During this period, there will be continuous safe access for residents, motorists and workers to existing establishments in the vicinity.

The advertised closures may be subject to change depending on weather conditions, and notices will be issued regarding any adjustments in timing.

“Motorists are urged to remain patient during disruptions caused by the construction and are advised to plan and adjust their routes while adhering to speed limits,” said Lowe.

Stop-and-go closures will take place on CB Downes Road (R103) between Market Road and Shortts Retreat Road as follows:

  • Dates: 11 April to 6 June 2024
  • Times: daily from 19h00 to 05h00

SANRAL apologises to all the road users for any inconvenience caused and appreciate the public’s cooperation and understanding during this necessary road closure.

 

//Ends

 

Stop/Go on N2 Section 16 from Mooiplaas to Qumrha T-Junction in the Eastern Cape

TRAFFIC ADVISORY

Stop/Go on N2 Section 16 from Mooiplaas to Qumrha T-Junction in the Eastern Cape

Gqerberha, 5 April 2024 – The South African National Roads Agency SOC Limited (SANRAL) advises road users that a Stop/Go system has been implemented on the N2 Section 16, from Mooiplaas to Qumrha T-Junction (formerly Komga), where a periodic road maintenance project is currently underway.

The 4km one-way Stop/Go system will be in place from Mooiplaas to Qumrha T- Junction from April to December 2024.

Motorists can expect a 10- to 20-minute delay at the Stop/Go.

“The broad scope of the road maintenance includes regular road upkeep, patching surfaces, minor repairs, resealing existing roadways and adjusting textures. While these tasks may cause temporary disruptions, their significant long-term advantage will be the preservation of infrastructure. Maintaining and enhancing road infrastructure not only ensures smoother journeys, but also plays a vital role in bolstering the economic and social welfare of the community,” said Mr Mbulelo Peterson, SANRAL’s Southern Region Manager.

SANRAL appeals to motorists to adhere to the warning signs, to reduce speed when approaching the construction zones and to plan their trips accordingly as there are no surfaced alternative routes available.

SANRAL apologises for any inconvenience caused.

//Ends

SANRAL supports road users with vital safety initiatives in the Eastern Cape over the Easter Weekend

MEDIA RELEASE

SANRAL supports road users with vital safety initiatives in the Eastern Cape over the Easter Weekend

                         Caption: Motorist receiving pamphlets on safe driving at SANRAL’s Easter road safety activation in Aberdeen

Aberdeen, Eastern Cape 3 April 2024 – The South African National Roads Agency SOC Limited (SANRAL) hosted a road safety activation at the Caltex petrol station, on the R61 about 50km outside Graaff-Reinet. With the bustling holiday traffic in mind, SANRAL focused on the safety of motorists returning home after the Easter weekend.

SANRAL engaged in conversations with motorists, emphasising the importance of taking breaks during long journeys and making regular stops to combat fatigue. The activation offered a range of amenities, including head and shoulder massages to alleviate tension and stress, refreshments such as energy drinks and water for drivers,and entertaining colouring books for children, ensuring a refreshed and relaxed journey ahead.

Godfrey Jacobs, a resident of Aberdeen, expressed gratitude for SANRAL’s efforts, stating, “It’s a good thing for Aberdeen. We’re happy to see this happening here. It’s been a busy weekend on the roads this Easter holiday, and the drivers deserve this so that they can rest and reset for the road ahead”.

The Easter weekend traditionally witnesses a surge in travel across the nation as people journey from urban centres to their hometowns, participating in religious gatherings and observing family traditions. However, this festive atmosphere is often overshadowed by an increase in road crashes, with drunken driving remaining a primary cause of fatalities and injuries.

One particularly hazardous road for motorists is approximately 20km outside Aberdeen. Local resident Donald Netnow advocated for the tarring of the gravel road to enhance safety and to uplift the Klipplaat community. “Coming back to the road safety awareness, thank you for reminding us as road users to take a break when driving long distances, especially when we just want to get home. My family and I are enjoying this activation,” said Netnow.

Under the banner of ‘Road Safety Starts with You’, SANRAL’s campaign emphasises personal responsibility on the roads. Messages such as “One look before you cross or overtake”, “One rest can save your life”, and “One call can end it all” underscore the effort required to mitigate road risks and to ensure safer journeys for all.

Road safety lies at the heart of SANRAL’s Horizon 2030 Strategy, which prioritises the integration of safety measures into road infrastructure design. As the entity responsible for the national road network, SANRAL remains committed to fostering safer conditions for all road users.

Thinus Appel, owner of the Caltex petrol station in Aberdeen, expressed gratitude to SANRAL for hosting its road safety activation in the community, emphasising the significance of such initiatives during peak traffic periods.

 

//Ends

 

 

 

Road safety does not stop after Easter

MEDIA RELEASE

Road safety does not stop after Easter

      Caption: Mario Baadjies from Springbok bagged a handy SANRAL toolkit when he trumped his opponents in a road safety quiz at SANRAL’s Easter road safety activation in Klawer.

Western Cape Town, 3 April 2024 – Two highly engaging road safety events were held by the South African National Roads Agency SOC Limited (SANRAL) over the Easter weekend in the Western Cape.

On Good Friday, a road safety activation was held at the Shell Ultra City on the N2 in Riviersonderend, where motorists leaving Cape Town for the long weekend were given road safety tips and edutainment material to keep the young ones occupied on the long road. Drivers were treated to express head and shoulder massages while taking a break before tackling the rest of the journey.

Visitors to the activation station were eager to test their road safety knowledge with teams competing for SANRAL prizes, which included handy toolkits, power banks, water bottles and flashlights.

On Easter Monday, the safety activation moved to the Engen One Stop on the N7 in Klawer. Inbound road users to Cape Town were once again provided with tips on road safety, generous prizes and treats for children.

The break from the long road was welcomed by learners from a Cape Town high school, travelling back home from Namibia. The learners were quick to show off their gaming skills at the racing simulator, testing their agility, reflexes and focus – useful skills for these future drivers.

SANRAL’s Western Region Manager, Randall Cable, said: “These road safety awareness campaigns provide SANRAL with an opportunity to interact directly with motorists and road users, to get their feedback about how we can improve road safety, how we can keep all our road users safe and at the same time, we are able to provide them with some advice and light fun as they continue their journeys.

“The idea is to educate not only the drivers, but also to introduce to young travellers the importance of road safety and create awareness about the rules and responsibilities of all road users.”

Motorists at the activation in Klawer expressed their appreciation for the initiative and hoped more such events would be organised on all South African key roads.

“We are happy to stop at the SANRAL activation. We normally only stop at Klawer to fill up, get something to drink and go. But this made us stop a little longer to get rid of fatigue and get some advice on road safety,” said Dennis Malan, who was visiting family in Cape Town.

Local Klawer resident, Liezelle la Grange, had come to get fuel and stopped by the activation station where she participated in some of the activities.

Regarding road safety in the area, her advice was that “for truckers it is more difficult than for the average driver, so just be patient. Many of them are under heavy stress to deliver, so be kind on the road”.

She hoped that truckers are provided with more safe places to park while they sleep or park for the night.

“SANRAL’s road safety initiatives take place throughout the year, with the focus being ramped up during peak travel times. Our aim is to have meaningful impact on road user behaviour, so that we collectively work to reduce serious and fatal crashes on the network. We will continue engaging road users and working in partnership with law enforcement agencies to increase visible policing and support services on all our roads,” said Cable.

 

//Ends

SMMEs on the N2 Wild Coast Road project in the Eastern Cape upbeat about accessing finance to participate in the economy

MEDIA RELEASE

SMMEs on the N2 Wild Coast Road project in the Eastern Cape upbeat about accessing finance to participate in the economy

      Caption: SMMEs were highly appreciative of the enterprise development opportunities presented by SANRAL

Lusikisiki, Eastern Cape, 3 April 2024: The South African National Roads Agency SOC Limited (SANRAL) has made a commitment to provide small, medium and micro enterprises (SMMEs) with adequate engineering tools to gain access into the construction sector.

The roads agency recently hosted an information session for SMMEs at the Lusikisiki Resource Centre in the Eastern Cape, where various sectors of the economy made presentations on the kinds of assistance available to SMMEs.

The assistance is available on the N2 Wild Coast Road project that stretches from the Gonubie Interchange outside East London, through the 112km greenfield portion near Port St Johns to the Mtamvuna River near Port Edward.

In line with SANRAL’s transformation agenda as outlined in its Horizon 2030 strategy, the session was intended to assist SMMEs with access to critical information by inviting financiers, the Department of Employment and Labour as well as plant manufacturer, Bell Equipment. This is meant to create a conducive environment for SMMEs on the Wild Coast to participate in all SANRAL projects.

“We have a situation where SMMEs have challenges with cash flow. I am happy to see the SMMEs happy. They understand that this was their session to find out how they can benefit from this collaboration,” said SANRAL’s District Office Manager, Nwabisa Gxumisa.
She emphasised SANRAL’s commitment to ensure the construction industry is transformed by creating opportunities through collaboration with economic drivers. “The plan was to complete Msikaba bridge in 2023 but due to delays, it will now only be completed in 2025. We are still going to have community development projects and access roads under the seven packages,” said Gxumisa.

The Department of Employment and Labour reiterated the importance of complying with the basic conditions of employment. Labour official Fezile Xhongo warned about the registration and clear remuneration packages for employees.

“Inspectors have every right to visit any business without obstruction, and businesses must answer all the questions asked. The way you remunerate your employees must be clearly outlined. For example, is it in terms of the minimum wage or is it determined by a bargaining council, as is the case with SANRAL? Your excuse cannot be that you did not know, when you can always ask your labour office,” he said.

Plant manufacturer Bell, a proudly South African company with a factory in Richards Bay, says SMMEs need yellow machinery, describing them as game changers in the industry.
Fortune Matsobane, Consultative Sales Advisor Executive at Bell said: “It would empower them to own the machinery, as it is capital investment. Bell is in a process to amend a Memorandum of Understanding with SANRAL and in the next month, we will have a revised approach on where and how the SMMEs can access these machines”.

A living example of this benefit is a woman who hires a yellow fleet to an established construction company. Nogolide Zokufa has been attending these sessions for years as she benefits from the interactions.

“I started with a bed-and-breakfast establishment in Flagstaff, but Bell opened my eyes through these sessions two years ago. Today I’ve hired a Tractor-Loader-Backhoe and an excavator out to a company that tendered for the N2WCR Package 5 between Msikaba and Mtentu bridges,” she said.

Standard Bank has opened its doors to small businesses to access funding for various banking needs as newcomers. Standard Bank representative Rebecca Mbalo advised on the availability of an enterprise development loan that has a limit of R1,5 million designed for SMMEs.

“Standard Bank is open to assist everyone irrespective of whether they are our clients or not. We can assist as long as you have a contract, even on the asset side. We have a credit appetite for SMMEs. The longer the contract, the better it is for SMMEs to repay,” said Mbalo.

SMMEs were eager to know if there were financial packages for first time business owners, and that there is equality when the Employment and Labour department enforces labour laws for small and large competing businesses.

//Ends

 

 

Update on SANRAL’s upgraded interchanges

SANRAL has rolled out more than 700 projects worth some R44 billion over the last five years. These projects, which include roads, tunnels, bridges and interchanges, have enabled ordinary citizens who were previously excluded from economic opportunities to do business and participate in the economy.

The impact of SANRAL’s investments in road infrastructure penetrates deep into the hearts of marginalised communities.

The EB Cloete Interchange in KwaZulu-Natal and Karino Interchange in Mpumalanga are just two examples of spectacular interchanges that SANRAL has been busy with.

EB Cloete Interchange

The upgrades of the N2 and N3 in KwaZulu-Natal form part of National Government’s key Strategic Integrated Projects, SIP2: Durban-Free State-Gauteng Logistics and Industrial Corridor. SIP2 aims to strengthen the logistics and transport corridor between South Africa’s main industrial hubs, improve access to Durban’s export and import facilities and raise efficiency.

The N2N3 upgrade project is divided into many phases, and includes upgrading of the EB Cloete Interchange, one of the most iconic interchanges in the country.

Popularly known as ‘spaghetti junction’, it was completed in 1970 and provides a full-system interchange for the N2 and N3. The network has been under increasing capacity constraints and SANRAL decided to undertake much needed upgrades.

Limited space for expansion will see this project feature a spectacular arch that will support the N3 carriageway as well as the flyover directional ramps. The arch will resonate with the arch theme of the Moses Mabhida Stadium and will be an iconic landmark as one enters Durban on the N3.

At R5 billion, the EB Cloete Interchange upgrade is the biggest single project value undertaken by SANRAL in its 25-year history.

General workers will be sourced from wards within 5km of the project site, which extends about 8.5km up and down the N2 and the N3 on either side of the interchange. It is expected that about R350 million will be spent on local labour over the contract period.

Completion of the upgrade of this interchange is expected to occur in 2027.

The greater N2/N3 corridor upgrades are expected to take 8-10 years to complete and will create up to 15,000 job opportunities during this period. Eleven projects worth approximately R24 billion are currently under construction.

 

Karino Interchange    

 

The R375 million Karino Interchange on the N4 National Road in Mbombela, Mpumalanga, provides a link between Mbombela and Kanyamazane, and a direct link from the R514 to the N4. The R514 also provides access to the Kruger Mpumalanga International Airport.

The N4 Toll Route is the catalyst for trade and investment between the three South African land-locked provinces of Gauteng, Limpopo, and Mpumalanga as well as neighbouring countries.

High commuter traffic volumes and the safety record at this intersection led to the decision to upgrade it to a grade-separated interchange with on- and off-ramps and a bridge to separate cross-traffic and through traffic and thus ease traffic flow.

Construction started in November 2019, and was completed in May 2022. About R116 million worth of work was set aside for SMMEs, and a total of 44 SMMEs benefitted from the project through subcontracting.

SANRAL commits to subcontracting at least 30% to SMMEs on all its projects. On this project this target was vastly exceeded, with 46.6% of the contract value going to local SMMEs.

In addition, R22.3 million was spent on local labour, with 422 local people employed: 236 males, 42 females, 143 youth, and one person living with a disability.

SANRAL ensures that at least 6% of contract value is spent on local labour. This project achieved a 9% spend on local labour.