JOINT MEDIA RELEASE
South African Government ends e-tolls in Gauteng
Gauteng, 28 March 2024 – The South African Government announces that e-tolls in Gauteng have officially been scrapped.
The gantries will officially be disconnected from the e-tolls network from 23h59 on 11 April 2024.
Following the initial announcement by Finance Minister Enoch Godongwana during his 2022 midterm budget policy statement (MTBPS) that e-tolls will be scrapped, the South African National Roads Agency SOC Limited (SANRAL), the National Department of Transport (NDoT), the National Treasury (NT) and the Gauteng Provincial Government (GPG) have finalised a Memorandum of
Agreement (MOA) that covers the following:
- Gauteng to pay 30% (R12,93 billion) of SANRAL’s debt to national government;
- Gauteng to contribute to backlog maintenance (R4.1 billion);
- National Treasury to cover 100% of SANRAL’s debt; and,
- Withdrawal of the declaration of Gauteng Freeway Improvement Project (GFIP) as a toll road.
The signatories reiterate that the user pay principle remains a government policy and commit to continually engaging and working together to explore adequate and stable funding solutions for road construction, maintenance, and upgrade to support economic development.
Transport Minister Sindisiwe Chikunga has published in the Government Gazette, the withdrawal of the toll declaration of the e-toll roads. 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 is a major milestone for road users in Gauteng. As government we are mandated to provide excellent roads and we will continue to do so. We will work with all stakeholders to make sure we maintain the excellent roads that people have become accustomed to on the e-toll network and beyond,” said Minister Chikunga.
Finance Minister Enoch Godongwana also said that National Treasury is pleased that an agreement that gives expression to the commitment made in the 2022 Medium Term Budget Policy Statement (MTBPS) speech has finally been concluded.
“The outstanding issues on the future of the Gauteng Freeway Improvement Project had become a source of uncertainty, not only to road users, but also to SANRAL and its bondholders, as well as current and potential investors in the province’s infrastructure development. Gauteng’s commitment to contribute to the backlog, maintenance and rehabilitation costs, in addition to the outstanding debt, represents a sustainable way forward while ensuring the quality of the province’s roads is maintained,” said Minister Godongwana.
Gauteng Premier Panyaza Lesufi said: “The e-tolling on the Gauteng freeways has been met with backlash since its inception on 3 December 2013. As the provincial government we have always been clear that whilst there is a general acceptance of the user-pays principle and willingness to pay for current and future upgrades of roads and public transport infrastructure, in its current form, the e-toll system was unaffordable.
“We are therefore pleased that our appeal has been heard and the e-tolls matter will finally be put to an end, bringing much needed relief to the people of Gauteng who have had to bear the brunt of paying e-tolls for roads which serve a national purpose.”
SANRAL Board Chairperson Themba Mhambi said: “We welcome this final resolution of e-tolls and acknowledge the collaboration of all the parties who resolved this matter. For SANRAL, this provides a clear commitment to the payment of the GFIP debt.”
SANRAL CEO Reginald Demana said: “This resolution allows us to conclude our long outstanding application for increased borrowing limits from National Treasury. We hope that this will furthermore allow us to go to the market and unlock funding from the private sector to fund our existing pipeline of brownfield, shovel-ready toll road capital expenditure projects.”
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Media contacts:
Collen Msibi
National Spokesperson Ministry of Transport
066 476 9015
Ms Cleopatra Mosana
Media Liaison Officer Ministry of Finance
063 686 8413
Sizwe Pamla
Spokesperson Gauteng Premier
060 975 6794
Lwando Mahlasela
Media Relations Manager SANRAL
082 440 5305