1887

n IMIESA - The road funding conundrum - roads & bridges

Volume 45 Number 1
  • ISSN : 0257-1978

Abstract

South Africa needs R86 billion to sustain its current road network. To address the identified backlog, a further R30.1 billion is needed. “The total cost requirement is therefore R116 billion and for 2017 we were allocated only R67 billion,” Saied Solomons, CEO, Sabita, told delegates at CAPSA 2019. The fuel levy serves as one of the main methods of collecting funds for road construction and maintenance; however, there would need to be substantial increases in this levy for it to cover the real costs. “To reach the R116 billion we need, we would need a R2.85 increase in the levy per annum, and that will never happen – politically, socially, economically, it cannot be done,” said Solomons. In fact, he argued that the efficiency of the fuel levy is decreasing year on year. More concerning still is that older vehicles have higher fuel consumptions and are generally owned by poorer individuals. “Those that are less well-off are paying more to travel the same distance on the road. That’s one of the inequities of the current fuel levy mechanism,” said Solomons. With this in mind, it is important to consider the various mechanisms available to collect road funding.

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/content/journal/10520/EJC-1be3e75c02
2020-01-01
2020-09-30

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