MEC Lebogang Maile
Second instalment for e-toll debt highlights ongoing financial strain as South Africa’s economic powerhouse tackles controversial road toll legacy
The Gauteng Provincial Government is set to transfer a staggering R5.476 billion on Monday, June 30, 2025, marking the second instalment of what has become one of South Africa’s most contentious infrastructure debts. This massive payment represents both a commitment to fiscal responsibility and a poignant reminder of the cost of the now-defunct e-toll system that plagued motorists for over a decade.
The E-Toll Legacy: From Public Outcry to Financial Burden
The electronic toll collection system, formally known as the Gauteng Freeway Improvement Project (GFIP), was introduced in December 2013 to fund highway upgrades connecting Johannesburg and Pretoria. However, the system faced widespread criticism and defiance from motorists who found the charges unaffordable, leading to a decade-long battle between government authorities and the public.
Following Finance Minister Enoch Godongwana’s announcement during his 2022 Mid-Term Budget Policy Statement that e-tolls would be scrapped, the gantries were officially disconnected on 11 April 2024. Yet the financial consequences continue to reverberate through Gauteng’s provincial budget.
Breaking Down the R5.5 Billion Payment
Monday’s transfer comprises two critical components that illustrate the complex financial web left behind by the e-toll system. The second instalment of historical debt amounts to R3.377 billion, representing Gauteng’s 30% contribution under the Memorandum of Agreement with the National Treasury, which covers the remaining 70%.
Additionally, R2.099 billion will be channelled towards the rehabilitation backlog of nine GFIP freeway projects, covering maintenance, upgrades, and capacity expansions across 185 kilometres of the N1, N3, N12, N14, and R21 routes. These arterial roads remain vital for South Africa’s economic hub, facilitating efficient transportation and supporting commercial activity across the broader Gauteng City Region.
The Human Cost: Services Under Pressure
Finance MEC Lebogang Maile has openly acknowledged the difficult compromises this debt payment requires. “If this R4.5 billion, or R20 billion over a while, were available, it would mean we could increase the number of schools we can build … the number of clinics we can build; it means we can improve the quality of services”, Maile explained during a recent briefing.
The figures paint a sobering picture: whereas Gauteng allocates R69.6 billion to education and R66 billion to health for the 2025/2026 financial year, only R300 million has been designated for pothole repairs across all provincial roads – a fraction of what the e-toll payment represents.
A Decade of Resistance: The Public Victory That Came at a Cost
Civil action group Organisation Undoing Tax Abuse’s (OUTA) CEO, Wayne Duvenage, hailed the scrapping of e-tolls as a victory, celebrating “the power of the public to overcome bad laws.” The resistance movement, which saw millions of motorists refuse to pay the charges, ultimately proved that public opposition could force government policy reversals.
However, the cost of this victory is substantial: SANRAL reported a staggering R28.7 billion in debt and anticipated losses associated with the scrapped system by March 2024, with collection efforts from non-compliant motorists yielding less than R300,000 – a collection rate of under 1%.
Looking Ahead: Sustainable Road Funding Challenges
With three more annual payments of approximately R3 billion each still to come, Gauteng faces the challenge of maintaining fiscal discipline while protecting essential services. The province is implementing a comprehensive revenue enhancement strategy, focussing on optimising existing revenue sources, improving collection processes, and identifying new funding streams.
Despite facing a broader financial strain of approximately R50 billion from various sources, including budget cuts and population overstatement clawbacks, Maile assured the public that the province is taking proactive measures to protect essential services.
As Gauteng continues to service this contentious debt, the e-toll saga serves as a powerful reminder of the importance of public consultation in major infrastructure decisions. The true cost of the decade-long resistance movement extends far beyond the abandoned gantries – it lives on in every school not built, every clinic not funded, and every pothole left unrepaired while this massive debt is slowly extinguished.
