Gauteng residents are paying R5.4 billion towards the failed e-toll project this week.
E-tolls (formerly known as the electronic toll collection process) were shut down over a year ago on 11 April, 2024.
The system was intended to help pay for Sanral’s Gauteng Freeway Improvement Project (GFIP) but was widely criticized by motorists who refused to pay yet another tax to use the roads.
This subsequently led to a widespread boycott where an estimated 80% of road users refused to pay their e-toll tabs.
The e-toll project, therefore, accumulated a massive amount of debt valued at roughly R43 billion, which eventually led to its shutdown in April last year.
However, the debt has not simply disappeared, as Gauteng and the country as a whole are still on the hook for the missing sum.
When the e-toll gantries were shut down, the Gauteng Provincial Government (GPG) and the national government reached a settlement where the former will pay for 30% of the outstanding debt, while the latter will assume responsibility for the remaining 70%.
This meant that the GPG would need to pay around R12.9 billion, while the national government would front the extra R30.1 million.
Gauteng made its first payment of R3.8 billion in October 2024, declaring that it had made its first contribution to its R20-billion debt.
This immediately drew the attention of groups like the Organisation Undoing Tax Abuse, who questioned why the debt amount had gone from R13 billion to R20 billion with no explanation.
“Our first question is, when did it get to R20 billion? It was R12 billion for the outstanding contribution to the Gauteng Freeway Improvement Project’s debt and then there was about R4 billion for some maintenance towards these roads,” said Outa CEO Wayne Duvenage.
“We just don’t know where does this R20 billion come from, they really just cannot explain where this money and where this debt is coming from.”
Outa further contended that the GPG should not pay a single cent towards the e-toll debt and should never have agreed to fund a portion of it, as the province neither came up with the idea for the tolling scheme nor owns the roads on which the gantries were installed.
“Be that as it may, [the GPG] is now setting out to settle some of this debt, and well, it has to cut its cloth to do this under very tight financial conditions at the moment because they are almost broke as a province,” said Duvenage.
“Our belief and view is that the provincial management right up to Panyaza Lesufi has just really got it wrong and shouldn’t have entered into this debt in the first place.”
We can’t afford it – But we’re paying it anyway
Regardless of the province’s financial situation, Gauteng is going ahead with its repayments towards the controversial e-toll project.
Gauteng Finance MEC Lebogang Maile confirmed in a press briefing on Sunday, 29 June that the GPG will pay its next instalment of R5.4 billion today, Monday 30 June 2025.
“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),” said the MEC.
“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 added that another R2 billion will be forwarded to road maintenance, while R3 billion has been set aside for the 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,” he said.
Maile commented during the briefing that the money could have been put to better use building schools, hospitals, and roads.
Likewise, he argued that the money could have been used to address the province’s deteriorating roads by fixing potholes and traffic lights.
“The repayment does have an impact on service delivery because it means we have limited resources,” he said.
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