South Africa has taken another major step toward closing one of the country’s most controversial road funding disputes, with Cabinet approving the write-off of historic E-toll debt linked to the Gauteng Freeway Improvement Project (GFIP).
The decision allows the South African National Roads Agency Limited (Sanral) to stop pursuing outstanding E-toll payments from motorists and businesses who failed to settle their accounts while the electronic tolling system was in operation.
However, road users who paid their E-toll fees over the years will not receive any refunds.
According to government, the toll charges were legally imposed at the time, meaning payments made before the toll declarations were withdrawn remain valid and cannot be reclaimed.
President Cyril Ramaphosa’s Cabinet approved the move as part of a broader effort to bring certainty to motorists, Sanral and the national fiscus after years of public opposition, legal challenges and political debate surrounding the system.
Government seeks final closure to E-toll dispute
Minister in the Presidency Khumbudzo Ntshavheni said Cabinet had considered Sanral’s recommendations and agreed that motorists who had already paid E-toll fees would not be compensated.
The Department of Transport said the approval effectively ends any further collection of unpaid historical GFIP debt and supports the orderly closure of the E-toll scheme.
Transport Minister Barbara Creecy and Deputy Minister Mkhuleko Hlengwa welcomed the decision, describing it as an important step in resolving a matter that has remained contentious for more than a decade.
Government also approved measures aimed at resolving outstanding litigation linked to E-tolls, including legal action initiated by the Organisation Undoing Tax Abuse (Outa). Officials said the objective is to eliminate any remaining legal uncertainty associated with historical debt recovery efforts.
The department stressed that the write-off is intended to provide finality rather than establish a precedent for future infrastructure projects.
User-pays principle remains part of road funding model
While E-tolls have effectively been brought to an end, government has reiterated that the user-pays principle remains part of South Africa’s long-term infrastructure funding framework.
Officials said future tolling arrangements would need to meet stricter conditions, including public acceptance, legal certainty, transparent structures and clear policy direction.
The E-toll system was originally introduced to help fund the Gauteng Freeway Improvement Project, a major upgrade of the province’s road network. However, it quickly became one of the most unpopular public infrastructure funding mechanisms in South Africa, with widespread resistance from motorists, businesses and civil society groups.
Efforts to resolve the issue have been underway for several years. In his 2022 Budget Speech, Finance Minister Enoch Godongwana announced that national government and the Gauteng provincial government had agreed to share responsibility for Sanral’s debt obligations, contributing 70% and 30% respectively.
Although discussions about ending E-tolls gained momentum thereafter, the formal decision to discontinue the system only came into effect on 12 April 2024.
The total amount of debt being written off has not been disclosed. However, Outa previously stated that one of its court cases involved 2,028 individuals and companies with outstanding E-toll debt amounting to approximately R265 million.
With Cabinet now approving the debt write-off and legal closure process, the long-running E-toll saga appears to be entering its final chapter, ending one of South Africa’s most debated transport funding experiments.
Source: Department of Transport / Cabinet Statement