Gauteng Govt Pays R3.3bn in Second Instalment Toward E-Tolls Debt Settlement

The Gauteng Provincial Government (GPG) has confirmed its payment of R3.3 billion toward the settlement of outstanding e-tolls debt, marking the second instalment of its commitment to resolve the long-standing financial burden associated with the Gauteng Freeway Improvement Project (GFIP). This announcement was made by MEC for Finance and Economic Development, Lebogang Maile, during a media briefing held on Sunday.

This latest payment, made to the National Treasury, comes as part of a broader agreement reached last year between the GPG and National Treasury, which led to the official scrapping of the controversial e-toll system. The decision to end e-tolls followed over a decade of public dissatisfaction and resistance from Gauteng motorists.

Paying Down a Historic Debt

MEC Maile detailed that the R3.3 billion payment forms part of Gauteng's 30% share of the historical e-tolls debt, as laid out in the 2025 Medium Term Expenditure Framework (MTEF) and governed by a Memorandum of Agreement with the Treasury.

“The amount due, based on the signed agreement, is R3.3 billion, which we are now paying as our second instalment,” Maile explained.

This follows the first instalment of R3.8 billion, which the provincial government paid on September 30, 2024. That initial contribution included R3.2 billion toward the historic debt and an additional R546 million earmarked for road maintenance.

According to Maile, Gauteng’s total obligation amounts to R15.9 billion, which includes R12 billion in principal debt and R3.3 billion in interest. The provincial government has agreed to pay this amount over five equal annual instalments, using the government’s five-year interest rate structure.

E-Tolls Era Ends, but Financial Responsibility Continues

The e-tolls system, introduced more than a decade ago under the GFIP by the South African National Roads Agency (SANRAL), was originally intended to help finance improvements to the province’s freeway network. However, the system quickly became a point of contention due to issues of affordability, lack of consultation, and enforcement concerns. Public backlash and widespread non-compliance made the scheme unsustainable.

In 2023, the national and provincial governments finally reached an agreement to terminate e-tolls. As part of the deal, the Gauteng government agreed to shoulder 30% of the total outstanding debt, while National Treasury would assume the remaining 70%.

Infrastructure Commitments Beyond the Debt

In addition to debt repayment, MEC Maile revealed that GPG has also committed R4.1 billion toward the rehabilitation of nine critical infrastructure projects under the Gauteng Freeway Improvement Project Phase 1 (GFIP1). These projects are overseen by SANRAL and aim to improve road safety, reduce congestion, and modernize transport infrastructure across the province.

“These nine projects are crucial to the ongoing functionality and economic viability of our province’s freeway network,” Maile said. “They align with our long-term vision for sustainable infrastructure investment and improved mobility.”

The provincial government has pledged to include provisions for these obligations in the 2024 fiscal framework, ensuring that these payments are made without compromising other critical services or development initiatives.

Fiscal Discipline and Long-Term Vision

Maile emphasized that the Gauteng government has maintained strict fiscal discipline since committing to the e-tolls settlement. “Since making this announcement… we have ensured that budgetary allocations reflect our commitment, without jeopardizing our broader development goals,” he said.

He reiterated that the province’s strategic approach balances its commitment to national infrastructure priorities with the need for financial sustainability and local economic development.

This development underscores a shift in public finance strategy and infrastructure planning in South Africa's most populous province, setting a precedent for transparent and accountable governance in the post-e-toll era.

Looking Ahead

As the GPG continues to make annual payments and invest in freeway rehabilitation, the government hopes to restore public trust and deliver improved road infrastructure that benefits all road users. The complete removal of e-tolls has been widely welcomed by residents, but attention now turns to ensuring the long-term sustainability of road infrastructure financing.

The Gauteng Provincial Government’s decisive action in resolving the debt and investing in infrastructure is viewed as a step toward both economic recovery and social consensus, signaling a broader commitment to responsible governance.