Gauteng pays R5.44 billion e-toll debt amid budget constraints
The gantries of the controversial Gauteng freeway improvement project (e-toll) gantries were disconnected in April 2024.
Outa – the Organisation Undoing Tax Abuse – hold a protest against e-tolls on the N1 highway in Johannesburg, 26 October 2018. Picture: Tracy Lee Stark
Gauteng Finance MEC Lebogang Maile says that R3.8 billion was paid towards the e-toll debt last year, and an additional R5.4 billion will be paid on Monday.
Maile briefed the media on Sunday about the substantial e-toll debt incurred when tolling was scrapped.
E-tolls scrapped
The gantries of the controversial Gauteng freeway improvement project (e-toll) gantries were disconnected in April 2024, after the National Treasury agreed to cover 70% of the debt, while the province took responsibility for the remaining 30%.
ALSO READ: Sanral reports nearly R29bn in expected credit losses from toll debtors
The total debt owed by the Gauteng government amounted to R15.9 billion, including accrued interest.
Second payment
Maile said that on 30 September 2024, the Gauteng Provincial Government made the first instalment, amounting to R3.8 billion.
He said this instalment consisted of R3.2 billion historical debt and the maintenance portion of R546 million.
'Today, we wish to announce that tomorrow, the 30th of June 2025, the Gauteng Provincial Government will honour the province's obligation by paying the second instalment towards the e-tolls debt as disclosed in the 2025 Medium Term Expenditure Framework (MTEF).
'The amount due on the 30th of June 2025, based on the Memorandum of Agreement, is R3.377 billion in terms of historical debt. This is the amount that we will be paying to the National Treasury tomorrow as a second instalment as part of our 30 percent contribution,' Maile said.
WATCH: Lebogang Maile speaking about the E-Toll debt
[WATCH] Gauteng MEC for Finance Lebogang Maile says an amount of R5.76 billion will be paid tomorrow for the e-toll debt and towards SANRAL freeway upgrades. pic.twitter.com/NC8AmyC64T
June 29, 2025
Road maintenance
Maile added that over R2 billion will also be channelled towards road maintenance and over R3 billion for the actual debt.
'With regards to the financing of Sanral's Gauteng freeway projects, the current outstanding amount is R3.559 billion.
ALSO READ: Gauteng pays first R3bn of whopping R12.9bn debt
'In addition to the e-toll payment, tomorrow, the Gauteng Provincial Government will also transfer an amount of R2.099 billion as part of the contribution towards the backlog of rehabilitation to restore the GFIP 1 freeways to an acceptable condition before Sanral resumes its obligations for all future maintenance funded by the national fiscus,' Maile said.
Money better used
Maile said Gauteng could have used that money to build additional schools, hospitals and roads and added that if the province was not paying this R5.4 billion, it could, for example, be announcing that it is 'giving R2 billion to deal with all the potholes, R1 billion to deal with the robots'.
'The repayment does have an impact on service delivery because it means we have limited resources'.
Fiscal environment
The MEC said the provincial government is implementing various measures and reforms to ensure the sustainability of our fiscal environment.
These include active debt management strategies, spending restraint, improving compliance with rules and regulations in supply chain management, as well as revenue enhancement.
'Our Revenue Enhancement Strategy is already been actualised. Provincial departments are implementing various strategies to enhance revenue collection, anchored on a strategy that is underpinned by the following five principles:
Accelerating the completion of interventions that have already started.
Optimising the existing revenue sources.
Enhancing revenue collection processes and systems to increase efficiency, cost effectiveness, and eliminate leakages.
Identifying potential new revenue sources that have not been explored.
The use of alternative funding and implementation models to achieve more value.
Maintenance
In terms of the MoA, Maile said Sanral cannot use the funds it receives from the province for any purpose other than the nine projects that are financed by the province.
He said the R4.1 billion will be used for the following maintenance, upgrades and capacity expansion projects on 185 kilometres on the N1, N3, N12, N14 and R21:
14th Avenue to Buccleuch
Golden Highway to 14 th Avenue
Buccleuch to Brakfontein
Brakfontein to Scientia
Heidelberg Rd to Geldenhuys
Geldenhuys to Buccleuch
Uncle Charlies to Elands
Gillooly's to Tom Jones
Olifantsfontein to Hans Strydom
'These freeways are vital for facilitating efficient transportation and supporting economic activity by providing high-speed, controlled-access routes for vehicles in the broader Gauteng City Region,' Maile said
Sanral
In addition to settling this debt, the Gauteng Provincial Government has also made a commitment to contribute towards the rehabilitation of nine projects that Sanral is undertaking.
'These projects, part of the Gauteng Freeway Improvement Project I (GFIP I) are aimed at the amelioration of the Gauteng freeway network, and will cost the provincial government a total of R4.1 billion,' Maile said.
ALSO READ: 'R6 billion in the red'; Gauteng could face bankruptcy by 2025 amid e-tolls debt
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