Semester 2 2025 – DUE 26 September 2025; 100% correct
solutions and explanations.
1. Funding of Non-Tolled Roads in South Africa
Introduction
Road infrastructure is the backbone of South Africa’s economic and
social development. Efficient road networks facilitate trade,
mobility, and service delivery. While tolled roads are financed
largely through user charges, non-tolled roads rely on other
funding mechanisms. Evaluating the viability of these methods is
essential to ensure sustainable infrastructure development and
maintenance.
Current Funding of Non-Tolled Roads
Non-tolled roads in South Africa are generally funded through:
1. Government Budget Allocations – The national and
provincial treasuries allocate funds to the South African
National Roads Agency Limited (SANRAL), provinces, and
municipalities.
2. Fuel Levy – A general tax collected from the sale of fuel,
which indirectly contributes to road infrastructure funding.
3. Equitable Share Transfers – Municipalities receive funds
through intergovernmental fiscal transfers, some of which are
used for road maintenance.
4. Conditional Grants – Specific road-related grants, such as the
Provincial Roads Maintenance Grant (PRMG), provide
earmarked funding for non-tolled road upkeep.