The Transport Department intends to introduce the Road Accident Benefit Scheme Bill that will reduce the burden of the embattled Road Accident Fund on the national fiscus.
Image: GCIS
Transport Minister Barbara Creecy said her department is considering a new funding model that will reduce the burden of the embattled Road Accident Fund (RAF) on the national fiscus.
Tabling the department’s R102 billion budget and priorities for 2026/27 in the National Assembly on Tuesday, Creecy said the department is already reviewing the proposed Road Accident Bill to reduce contingent state liability by creating a no-fault system and a standardised injury compensation system.
“We are now researching options for a hybrid funding model that will include both private and public contributions, to lessen the burden on the fiscus going forward,” she said.
Deputy Minister Mkhuleko Hlengwa said the department was finalising a review of the legislative and compensation framework as part of efforts to address the long-term financial sustainability of the RAF.
“The current model is not financially sustainable,” he said.
Hlengwa also said they intended to introduce the Road Accident Benefit Scheme Bill to Parliament this year.
“The proposed framework provides for defined structured benefits on a no-fault basis,” he said.
In her budget vote, Creecy said targeted investments in maintaining, rehabilitating, upgrading, and expanding the road network remained key to the movement of people and goods.
She announced that the South African National Roads Agency will be allocated R31 billion this year for capital expenditure on the non-toll network, the Gauteng Freeway Improvement project operations, the N2 Wild Coast route for ongoing construction on major bridges, and new road sections on national highways, as well as the development of the Moloto Road corridor.
“These large-scale projects will continue to improve safety and shorten travel distances while creating over 35,000 job opportunities and supporting more than 2,000 small enterprises. “Investment in public infrastructure projects is a significant catalyst for job creation and economic development.
Creecy expressed concern about serious challenges at provincial and municipal levels, where financial resources and in-house capacity for road maintenance are often inadequate.
Since 2013, provincial governments have transferred 13,000 kilometres of provincial roads to the South African National Road Agency Limited (Sanral) for management and maintenance.
“This strategy is not sustainable in the long term and will ultimately impact Sanral’s ability to maintain the National Road Network without introducing widespread tolling.”
She said the National Treasury and Transport will next month host a joint forum of Ministers and MECs of transport and finance, respectively, to find a mechanism to frontload the Provincial Road Maintenance Grant so that provinces can upgrade more of their priority roads sooner.
Creecy further said the revitalisation of the passenger rail system continued to go from strength to strength, with yearly passenger journeys surpassing 100 million at the end of March 2026.
“This six-fold increase over four years reflects deliberate and sustained investment in infrastructure, rolling stock, security, and institutional reform.
“In Gauteng, KwaZulu-Natal, and the Western Cape, we are increasing train frequencies, improving security, reducing vandalism, and ensuring connectivity for communities previously excluded from reliable transport services.”
The minister also said a Request for Information process for passenger rail was launched at the end of 2025 to gauge the appetite for investment in rapid regional rail, depot modernisation, rolling stock leasing, automated fare collection, and optic fibre installation.
Creecy said they were in discussion with the National Treasury on front-loading mechanisms to conclude restoration of outstanding priority lines.
“Effective passenger rail systems must be integrated with other modes of transport to ensure safety and efficiency.”
She added that the taxi industry remained a key part of the national transport landscape and was also one of the largest black-owned sectors in the country, with its revenue estimated at between R60 and R100 billion annually.
“This year, we will conclude the review on the Taxi Recapitalisation Grant. Work is being done between the department, taxi associations, and financial institutions to de-risk the cost of new vehicles and provide affordable finance to taxi operators.”
Creecy said the formalisation of the taxi industry was an important factor in unlocking further value for the industry.
“Santaco has piloted a cashless route in Gauteng, which is a first step in regularising and de-risking the industry.”
mayibongwe.maqhina@inl.co.za