SANRAL CEO to pursue a new opportunity media release & FAQ

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10 July 2026, Pretoria – The South African National Roads Agency SOC Limited (SANRAL) would like to advise stakeholders that its Chief Executive Officer (CEO), Mr Reginald Demana, has tendered his resignation with effect from 31 August 2026. He will be taking up a new opportunity in the financial services sector which aligns with his long-term career ambitions. Mr Demana joined SANRAL as CEO in January 2023 with a mandate to, among others, accelerate development of key national road corridor infrastructure projects, stabilise SANRAL’s toll portfolio.

During his tenure at SANRAL, Mr Demana played a key role in the following:

  • SANRAL made significant progress on strategic infrastructure projects, including the R573 Moloto Road, N2 Wild Coast Road, N2-N3 KwaZulu-Natal upgrades, N2 Corridor in Mpumalanga and N1 South Corridor. These projects traverse both toll and non-toll road portfolios.
  • The resolution of the Gauteng Freeway Improvement Project (GFIP) e-toll issue, which resulted in a significant improvement in SANRAL’s balance sheet, largely due to the government’s decision to absorb all the GFIP/e-toll related debt; and
  • Approval of an increased borrowing limit of R16.5 billion for SANRAL up to 31 March 2028, including a R7 billion government-guaranteed New Development Bank facility. This was key to unlocking funding capacity for toll portfolio capital investment and previously constrained capital projects.

The SANRAL Board will begin the recruitment process for a new CEO and will announce an Acting CEO while that process is underway. A further announcement will be released once the Board has appointed an Acting CEO, which will be no later than 17 July 2026, to support a smooth handover and transition between Mr Demana and the Acting CEO.

The SANRAL Board thanks Mr Demana for his service and contribution to SANRAL and wishes him well in his future endeavours.

-ENDS-

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Issued by the South African National Roads Agency SOC Limited (SANRAL). For editorial content or additional information contact Lwando Mahlasela on 082 440 5305 or pressoffice@nra.co.za 

 

FREQUENTLY ASKED QUESTIONS

1) Why is the CEO leaving? Is it related to the recent negative media headlines SANRAL has been making?

Mr Demana has indicated his desire to go back to the financial services sector. The bulk of his career and working experience has been gained in investment banking, mergers and acquisition advisory, BEE structuring, IPOs and capital raising.

His decision to leave has nothing to do with the headlines being referred to. In fact, the career move has been on the cards since October 2025.

2) There are a number of litigation matters facing SANRAL as the CEO departs. Some started during his tenure. Will he continue assisting SANRAL on these matters should his firsthand knowledge of these matters be needed?

Where the Mr Demana can assist with any outstanding litigation matter, he has undertaken to assist SANRAL, of course within the constraints of his future commitments.

3) SANRAL has been receiving negative media coverage around Procurement. In what state is the CEO leaving the organization’s Procurement Department?

In his first year at SANRAL, the entity made 395 awards valued at R53 billion, an increase from the 320 awards in the previous year valued at R51 billion. It was the highest number of tender awards in the history of SANRAL. In the last two years, SANRAL has faced some challenges occasioned by the creation of a new panels model it was piloting. These challenges are not insurmountable and SANRAL believes that with the new reforms it is undergoing in SCM due course, the organization will overcome these. The figures of the earlier years of Mr Demana’s tenure inspire hope that SANRAL has the resilience and capability to bounce back in the awarding of contracts.

4) What achievements under his tenure can SANRAL point out?

Since joining SANRAL, Mr Demana has driven a massive turnaround of the Agency focusing on improving its balance sheet and borrowing capacity, increasing the national road network, driving already existing mega projects, improving internal capacity and resolving the operational matters relating to the e-toll project. Mr Demana’s key achievements during his tenure include:

Financial Indicators

  • The resolution of the Gauteng Freeway Improvement Project (“GFIP”) e-toll issue which removed a long-standing constraint on SANRAL’s financial sustainability and enabled the transition of the GFIP network into a non-toll funding framework.

  • A significant improvement in SANRAL’s balance sheet, largely due to the government’s decision to absorb the R47 billion GFIP/e-toll debt.

  • Approval of an increased borrowing limit of R16.5 billion for SANRAL up to 31 March 2028, including a R7 billion government-guaranteed New Development Bank facility. This was key to unlocking funding capacity for toll portfolio capital investment and previously constrained capital projects.

Roads Programme Indicators

  • In FY2024/25, SANRAL spent approximately R35 billion directly on roads, including approximately R18.4 billion on capital works and R16.6 billion on maintenance, reflecting improved delivery momentum and increased expenditure on the road programme.
  • SANRAL’s declared national road network reached approximately 27,500 km, with the network valued at approximately R780 billion, reflecting the scale and strategic significance of the road assets under SANRAL’s stewardship.
  • SANRAL made significant progress on strategic infrastructure projects, including the R573 Moloto Road, N2 Wild Coast Road, N2-N3 KwaZulu-Natal upgrades, N2 Corridor in Mpumalanga and N1 South Corridor. These projects traverse both toll and non-toll road portfolios.
  • SANRAL responded swiftly to flood-damaged roads and other infrastructure vulnerabilities as part of its asset management, maintenance planning, disaster response and capital investment processes, including damage assessments in the KwaZulu-Natal, Western Cape, North-West, Limpopo and Eastern Cape provinces. Throughout Mr Demana’s tenure, SANRAL continued to ensure that socio-economic transformation secured its social license to operate, developing the national road network by empowering communities, people and businesses across all areas where its roads traverse.

Transformation and Job Creation Indicators

  • Its outreach programme, Taking SANRAL to the People scaled up during his tenure and increased public understanding of the entity, thus enhancing community affiliation with its projects.
  • In FY2025/26, SANRAL launched the Contractor Development Programme (CDP) aimed at empowering black-owned construction companies to graduate to lead contractors. The programme provides targeted training, mentorship and financial support over a maximum of five (5) years to CIDB grades 5CE to 9CE.
  • Transformation outcomes included 2,012 Small, Medium and Micro Enterprises (SMME) working on SANRAL projects in FY2024/25, supported by ongoing enterprise development and the participation of emerging contractors in the road construction value chain.
  • SANRAL created 21,360 job opportunities on projects in 2024/25, exceeding the revised annual target of 15,000, while continuing to direct project opportunities to local labour, SMMEs and designated groups.

Governance and Human Capital Indicators

  • SANRAL continued to strengthen governance and executive capacity through the professionalization and expansion of its executive management team, which now includes Finance; ICT; Supply Chain Management; Legal, Risk and Compliance; Corporate Affairs; Human Resources; and Construction, Operations and Maintenance Engineering as well as Planning and Design Engineering. The team supported the broader operating model reforms aimed at aligning business functions with appropriate expertise and reducing over-reliance on outsourced key operational functions.
  • SANRAL advanced the provincialization of its operating model, establishing a physical presence in all nine provinces – as opposed to four regional offices previously – and positioning provincial heads as critical to strategic alignment and stronger governance.
  • SANRAL successfully internalized the Central Operations Centre in Midrand, which previously managed the e-toll project and was outsourced, and integrated its employees into the SANRAL staff, introducing efficiencies and saving costs in the process.
  • SANRAL filled critical positions, like those of the Chief Financial Officer, and other senior posts, leaving behind a working organisation for the new board.
  • Unqualified audit opinions from the Auditor-General of South Africa (AGSA) throughout Mr. Demana’s tenure.

Institutional Reputation and Brand Value Indicators

  • SANRAL continued to strengthen its institutional reputation and brand value. The strength of the SANRAL brand was affirmed through Brand Finance’s South Africa 100 2026 assessment, where SANRAL debuted as one of the new entrants, with a brand value of R2.8 billion, a Brand Strength Index score of 86.0, a AAA brand strength rating and a ranking among the top 30 strongest brands in South Africa, reflecting strong performance across key metrics of trust, reputation, and stakeholder engagement.

5) What are the issues he is leaving unresolved?

There are some legal matters that have yet to be resolved. These relate to contested tender awards and one labour related matter. SANRAL is well able to resolve these without Mr Demana. Besides, there can never be an appropriate moment for one to leave an organization especially if the absence of litigation is considered as the deciding factor.

6) Is the Board releasing him unreservedly?

SANRAL has not attached any conditions to the resignation of the CEO.

7) Has the departing CEO indicated his future plans or what organisation, if any, he is joining?

SANRAL does not require resigning employees to disclose what their future plans are. To this end, Mr Demana’s future plans are his and he is the best placed person to answer this question.

8) Has an acting CEO been appointed and how long will the permanent filling of this critical position take?

The SANRAL Board is seized with the matter and once a decision has been made, the announcement in relation to an acting CEO will be made. Advertisement for a new CEO will commence soon and the appointment of new CEO will be announced in due course.

-ENDS-