Finance Minister Enoch Godongwana’s proposed 2025 Budget is not without controversy, given the incremental VAT increase on the table, but it does bring good news for infrastructure development.
Godongwana announced during his Budget Speech on March 12 that over R1 trillion would be spent on public infrastructure over the next three years, including R402 billion for transport and logistics.
In the transport sector, R100 billion has been allocated to the South African National Roads Agency (SANRAL) in the medium term for the upkeep of the country’s road network.
To that end, provincial roads departments will reseal over 16,000 lane-kilometres of roads, Treasury said.
The funding will also double the number of kilometres under active resurfacing contracts, from 950km in 2024/25 to 2,000km in 2025/26.
This will have far-reaching benefits, says Troy van der Westhuisen, MD at MVIA Insure, including improved road safety, reduced vehicle maintenance and economic benefits associated with faster delivery times.
“Better road infrastructure also has far-reaching ripple effects, including job creation in construction and engineering, increased tourism through better access for visitors, and enhanced trade and investment opportunities, with efficient logistics networks positioning the country as an attractive hub for global business,” Van der Westhuyzen said.
“This funding marks a step in the right direction, but sustained, strategic investment is needed to fully modernise South Africa’s roads, improve road safety, and unlock economic potential.”
However, the increased funding also comes amid a R197 billion backlog in road maintenance, underlining the importance of long-term maintenance.
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