South Africa’s R313 billion plan to fix its transport sector

The Department of Transport (DoT) has a projected medium-term budget of R313 billion that it aims to use to fix South Africa’s crumbling transport infrastructure.

The Select Committee on Public Infrastructure and Minister in the Presidency has already considered and adopted its report on the department’s Budget Vote and annual performance plan (APP).

The report was drawn up following engagements with the DoT regarding its priorities, financial allocations and performance targets for the 2026/27 financial year and the medium term.

“The committee noted the department’s central role in providing policy direction, regulatory oversight and coordination across South Africa’s transport ecosystem,” it said.

“The committee welcomed the department’s frank assessment of prevailing challenges within the sector, particularly those relating to dilapidated infrastructure and governance, accountability and operational inefficiencies.”

Committee members noted that stronger oversight and improved institutional performance remain crucial in South Africa achieving a safe, reliable and integrated transport system.

The DoT’s R313 billion budget over the Medium-Term Expenditure Framework (MTEF) allocated a majority of its funds towards transfers and subsidies to public entities, as well as conditional grants.

However, it did highlight key spending priorities, including road infrastructure maintenance, passenger rail modernisation, public transport subsidies and overall logistics reform.

In turn, the committee highlighted rail transport as a key, strategic priority that will support South Africa’s economic recovery, reduce congestion on the road network, and improve commuter mobility.

“Investments in signalling systems and network rehabilitation were welcomed,” noted the public infrastructure committee.

“Road transport remains the largest area of expenditure, with programmes aimed at enhancing road safety, improving freight efficiency and supporting labour-intensive job creation initiatives targeted at women, youth and persons with disabilities.”

Raising serious concerns

Members of the committee raised serious concerns regarding the continued financial instability and governance risks facing South African Airways (SAA).

These include the concerns already raised by the Auditor-General (AG) regarding the airline’s sustainability and continued reliance on state support mechanisms.

“Members emphasised the importance of ensuring that public funds allocated to state-owned entities deliver measurable value, operational sustainability and improved governance outcomes,” the portfolio committee noted.

“The committee further stressed that the broader transport sector cannot achieve long-term stability while key entities remain financially vulnerable and dependent on recurring interventions.”

Further concerns raised by the committee include the accessibility and affordability of South Africa’s public transport, especially for low-income households in rural areas.

In response, the department noted that subsidies provided through its public transport grants are intended to reduce fare pressures, despite these not covering the full cost of transport operations.

Committee members urged the Transport Department to seriously consider coordinated interventions to improve service delivery at national, provincial and local government levels.

They also highlighted recent conflicts between taxi and e-hailing operators in the Western Cape, KwaZulu-Natal and the Eastern Cape.

The committee questioned the department about the implementation of regulations that were issued last year aimed at regulating the industry.

The DoT responded to this, claiming that provincial regulatory entities are in the process of converting operating licences for e-hailing operators.

It added that it will soon implement regulations which aim to improve passenger security in the e-hailing industry.

Following consultations between the parties, the committee adopted recommendations that are outcome-based and measurable, including:

• A detailed report on the return on investment from departmental bursary and graduate programmes, including completion rates and employment outcomes;
• Evidence of the growth and development of emerging contractors supported through public procurement; and
• A comprehensive register of concession agreements, including contract durations, local participation requirements and skills transfer provisions.

The committee noted that it will continue to monitor the implementation of the DoT’s plans to ensure that public resources are utilised effectively to deliver safe, efficient and accessible transport services.