Road funding options : a case study of how Gauteng can cover the 14.1 billion rand e-toll debt and 6.9 billion rand refunds

Abstract

Most motorists applauded the announcement of scrapping e-tolls on the Gauteng Freeways. Most media outlets interpreted the scrapping of e-tolls as a debt victory for the South African National Road Agency SOC Ltd. (SANRAL). The decision taken left the Gauteng provincial government and national government with a debt of 47 billion rand, which is split into a proportion of 30/70. On top of the latter decision, the Gauteng provincial government would cover its estimated road maintenance costs of over 2 billion rand each year for the upcoming three years. Moreover, the Premier of Gauteng agreed to refund 6.9 billion rand to motorists who have been complying with their e-toll payments. This is a scholarly research paper that examines possible ways available to the Gauteng provincial government to cover the latter debt, the refund, and continue to maintain good freeways. Possible solutions suggested by the Finance Minister and the Premier includes the building of manual tolls, increasing fuel costs, and increasing licensing costs within the province. The researcher in this scholarly research paper also discusses the road funding options used in South Africa and elsewhere. Finally, the researcher recommends the optimal solution for the Gauteng provincial government.