South Africa’s government is evaluating a new funding model for the Road Accident Fund (RAF), raising the possibility that motorists could see changes to how the country’s road accident compensation system is financed in the coming years.
Transport Minister Barbara Creecy confirmed that the Department of Transport, together with the RAF, is reviewing the existing funding framework to identify a model that is financially sustainable while remaining fair to different categories of road users.
The review comes as the RAF continues to face longstanding financial pressures, operational challenges and administrative backlogs despite receiving billions of rand each year through the national fuel levy.
Currently, every litre of petrol and diesel sold in South Africa includes a2.18-rand RAF levy, which funds compensation for people injured or affected by road accidents.
According to Creecy, the assessment is expected to be completed during the2026/27financial year before government selects a preferred funding model for policy development, public consultation and possible legislative amendments.
Alternative funding options remain under discussion
Although the department has not announced its preferred option, Creecy previously suggested that an additional RAF-related charge linked to annual vehicle licence disc renewals could be considered in the future.
The proposal was presented as a possible transitional measure as South Africa gradually adopts electric vehicles, which could eventually reduce fuel levy revenue if petrol and diesel consumption declines.
However, the idea has attracted criticism because owners of conventional petrol and diesel vehicles could effectively pay twice—once through the fuel levy and again when renewing their vehicle licences.
The minister has stressed that any future model must avoid creating unfair financial burdens between different categories of motorists and should reflect South Africa’s specific economic and transport environment.
Industry groups call for operational reform before new charges
The Automobile Association of South Africa (AA) argues that improving the RAF’s administration should take priority over introducing additional fees.
AA Chief Executive Officer Bobby Ramagwede said the organisation believes the fund already collects sufficient revenue but continues to struggle because of operational inefficiencies rather than inadequate funding.
He also questioned whether the relatively slow pace of electric vehicle adoption justifies introducing new charges for motorists at this stage.
Some transport experts have suggested replacing the RAF with compulsory third-party motor vehicle insurance, arguing that it could achieve similar objectives while shifting responsibility to private insurers.
Others remain unconvinced. Organisation Undoing Tax Abuse (OUTA) CEO Wayne Duvenage has previously warned that compulsory insurance may prove difficult to enforce because many motorists already fail to comply with existing legal requirements.
According to Duvenage, eliminating the RAF entirely could create new risks if uninsured motorists are involved in serious crashes, leaving injured victims without adequate protection.
For now, the Department of Transport says the review remains underway, and no final decision has been made. Any proposed changes will undergo further policy consideration and stakeholder consultation before implementation.
Source: Department of Transport and parliamentary responses.