SA Allocates R31 Billion into National Road Infrastructure Network

The funding package is expected to significantly accelerate road maintenance, highway expansion and rail modernisation projects while creating tens of thousands of jobs and stimulating broader economic development.

South Africa is set to invest nearly R31 billion into its national road infrastructure network this year as part of a broader R102 billion transport budget aimed at revitalising transport systems, boosting economic growth and addressing the country's mounting infrastructure and road safety challenges.

Tabling the Department of Transport's Budget Vote in Parliament on Tuesday, Transport Minister Barbara Creecy outlined an ambitious infrastructure-led strategy designed to transform South Africa's transport sector into a more inclusive, efficient and competitive system capable of supporting commuters, freight operators and export industries.

The funding package is expected to significantly accelerate road maintenance, highway expansion and rail modernisation projects while creating tens of thousands of jobs and stimulating broader economic development.

SANRAL to Receive Nearly R31 Billion for Roads and Highway Expansion

According to Creecy, the South African National Roads Agency (SANRAL) will receive almost R31 billion during the current financial year to maintain, rehabilitate, upgrade and expand the country's road infrastructure network.

The allocation will fund several major infrastructure initiatives, including:

• Capital expenditure on the non-toll road network

• Operations linked to the Gauteng Freeway Improvement Project

• Ongoing construction on the N2 Wild Coast route

• Major bridge construction projects

• New highway sections across national routes

• Development of the Moloto Road corridor

The Minister said the projects are expected to significantly improve road safety, reduce travel times and strengthen logistics connectivity across key economic corridors.

"These infrastructure projects are expected to improve road safety, shorten travel distances, and create more than 35 000 job opportunities while supporting over 2 000 small enterprises," Creecy told Parliament.

Infrastructure Spending Seen as Key Economic Growth Driver

The South African government is increasingly positioning infrastructure investment as a central pillar of economic recovery and employment generation.

Creecy described public infrastructure expenditure as a major catalyst for:

• Job creation

• Economic development

• Industrial activity

• Small business participation

• Logistics efficiency

• Regional connectivity

Analysts say improved road infrastructure is critical for South Africa's mining, manufacturing, agriculture and export sectors, many of which rely heavily on efficient freight corridors and transport networks.

The N2 Wild Coast route project, in particular, is viewed as one of South Africa's most strategically important transport infrastructure projects due to its expected impact on regional trade, tourism and connectivity.

Government Warns Provincial Road Maintenance Crisis Is Unsustainable

Despite the large investment commitment, Creecy raised serious concerns about deteriorating road infrastructure at provincial and municipal levels.

She warned that inadequate funding and limited technical capacity within local governments continue to place severe pressure on road maintenance systems across the country.

According to the Minister, provincial governments have transferred approximately 13 000 kilometres of provincial roads to SANRAL for management and maintenance since 2013.

"This is not a sustainable long-term strategy and will ultimately impact SANRAL's ability to maintain the National Road Network without introducing widespread tolling," Creecy cautioned.

Transport experts say many provincial and municipal roads have suffered years of underinvestment, resulting in worsening potholes, deteriorating freight routes and rising maintenance backlogs.

Government Exploring New Funding Mechanisms for Road Upgrades

To address the growing infrastructure funding gap, the government plans to convene joint discussions between the National Treasury and the Department of Transport through the Minister and MECs (MINMEC) forum.

The discussions will focus on mechanisms to frontload the Provincial Road Maintenance Grant, enabling provinces to accelerate upgrades on priority roads before infrastructure conditions deteriorate further.

Officials believe earlier funding deployment could help reduce long-term rehabilitation costs while improving road conditions more rapidly in economically important regions.

South Africa's Passenger Rail Revival Shows Strong Recovery

Alongside road investment, the government also highlighted significant progress in the revival of South Africa's passenger rail network.

According to Creecy, annual passenger rail journeys surpassed 100 million passengers by the end of March 2026 — representing a dramatic sixfold increase over the last four years.

The recovery follows sustained investment in:

• Rail infrastructure rehabilitation

• Rolling stock upgrades

• Security enhancement

• Institutional reform

• Service restoration

"This sixfold increase over four years reflects deliberate and sustained investment in infrastructure, rolling stock, security, and institutional reform," the Minister said.

Rail services in Gauteng, KwaZulu-Natal and the Western Cape are currently being expanded through increased train frequencies, improved commuter safety measures and restoration of connectivity to previously underserved communities.

Government Seeks Private Investment in Rail Modernisation

At the end of 2025, the government launched a Request for Information (RFI) process to assess private sector interest in several passenger rail modernisation initiatives.

These include:

• Rapid regional rail systems

• Depot modernisation

• Rolling stock leasing

• Automated fare collection systems

• Fibre optic infrastructure installation

The move signals the government's growing interest in leveraging public-private partnerships to modernise transport infrastructure amid ongoing fiscal constraints.

Creecy confirmed that discussions are underway with National Treasury regarding frontloading funding mechanisms to accelerate restoration of outstanding priority rail lines.

Integrated Transport Networks Key to Urban Mobility Strategy

The Minister emphasized that passenger rail systems must function as part of integrated multi-modal transport networks to improve commuter safety, efficiency and accessibility.

Transport planners believe better integration between rail, buses, taxis and other transport modes is critical for addressing South Africa's urban mobility challenges and reducing congestion in major metropolitan areas.

Government Reviewing Road Accident Fund Amid Financial Pressures

Creecy also announced that the government is reviewing the proposed Road Accident Fund (RAF) Bill in an effort to reduce growing state liability and improve sustainability of the compensation system.

The proposed reforms include:

• Introduction of a no-fault compensation system

• Standardised injury compensation frameworks

• Hybrid public-private funding models

The Road Accident Fund, which compensates and rehabilitates victims of road accidents, continues to face mounting financial pressure due to:

• High accident rates

• Legal disputes

• Massive claims backlogs

• Rising compensation costs

Government is now exploring a mixed funding structure involving both public and private contributions to reduce pressure on the national fiscus.

South Africa Facing Severe Road Safety Crisis

The Minister described road safety as a "national crisis," revealing that South Africa recorded more than 11 418 road fatalities last year, among the highest rates globally.

The alarming figures have intensified calls for:

• Improved road infrastructure

• Stricter law enforcement

• Safer public transport systems

• Driver behaviour reforms

• Enhanced road safety education

Road safety experts say infrastructure upgrades alone will not be sufficient unless accompanied by stronger enforcement measures and systemic behavioural change.

Transport Infrastructure Central to South Africa's Economic Recovery

The R102 billion transport budget reflects the government's broader strategy of using infrastructure-led growth to revive economic activity, strengthen logistics performance and improve public mobility.

Analysts say successful execution of the planned projects could significantly improve freight efficiency, commuter mobility and investor confidence while helping address South Africa's unemployment crisis through large-scale infrastructure employment.

However, experts also warn that sustained implementation capacity, financial discipline and long-term maintenance planning will be critical to ensuring the infrastructure investments deliver lasting economic and social benefits.