UNIVERSITY OF SOUTH AFRICA
College of Economic and Management Sciences
⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄⋄
TRL3702: Transport Economics
Assessment 1 — Semester 1, 2026
⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄⋄
TRL3702
Module Code:
Transport Economics
Module Name:
Infrastructure Investment and Economic
Assignment Topic:
Growth in SA
[Student Full Name]
Student Name:
[Student Number]
Student Number:
Assessment 1
Assignment Number:
[Unique Number]
Unique Number:
Submitted in partial fulfilment of the requirements for TRL3702 — UNISA 2026
, UNISA | TRL3702 Transport Economics
Question 1.1: Economic Growth Effects of the Moloto Road Upgrade on Rural Commu-
nities
The 160-kilometre Moloto Road corridor, linking Gauteng, Mpumalanga, and Limpopo, has
historically been one of South Africa’s most dangerous and economically underserved routes.
The South African government’s R4.5 billion investment to upgrade the road under the man-
agement of the South African National Roads Agency (SANRAL) represents far more than an
engineering project; it is a deliberate intervention to unlock economic potential in rural com-
munities that have long been disconnected from national markets, services, and opportunity
(SANRAL, 2024; SAnews, 2023). The sections below outline the key economic growth effects
this upgrade is expected to generate.
1.1.1 Improved Market Access for Rural Businesses
Improved road infrastructure directly reduces transport costs and travel time, which lowers
the barrier for rural businesses to reach urban markets (World Bank, 2020). The upgraded
Moloto Road, widened to four lanes and fitted with modern safety features, will enable local
businesses in the 55 villages of the Dr JS Moroka municipality and 50 villages in the Them-
bisile Hani Local Municipality to distribute goods to Pretoria and Johannesburg more quickly
and at lower cost (News24, 2024). Transport Minister Mbalula confirmed that the upgrade
would enable small farmers to bring their produce to markets and facilitate the movement
of goods, services, and people (SAnews, 2023). For small traders who previously could not
reliably transport goods due to road damage, the upgrade represents a structural opening of
new commercial channels.
1.1.2 Increased Employment Opportunities and Labour Mobility
Road upgrades stimulate employment at two levels: during the construction phase and over
the long term through improved labour mobility. The Moloto Road project alone is projected
to generate approximately 12,500 jobs, with specific targets for women, youth, persons with
disabilities, and military veterans (TimesLive, 2024). SANRAL has committed that a mini-
mum of 30% of the project value will be subcontracted to SMMEs with at least 51% black
ownership, directly channelling economic activity into the communities surrounding the road
(News24, 2024). At the labour mobility level, an upgraded road enables workers from rural
areas to commute reliably to employment centres in Tshwane and other urban nodes, expand-
Page 2 of 14
College of Economic and Management Sciences
⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄⋄
TRL3702: Transport Economics
Assessment 1 — Semester 1, 2026
⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄⋄
TRL3702
Module Code:
Transport Economics
Module Name:
Infrastructure Investment and Economic
Assignment Topic:
Growth in SA
[Student Full Name]
Student Name:
[Student Number]
Student Number:
Assessment 1
Assignment Number:
[Unique Number]
Unique Number:
Submitted in partial fulfilment of the requirements for TRL3702 — UNISA 2026
, UNISA | TRL3702 Transport Economics
Question 1.1: Economic Growth Effects of the Moloto Road Upgrade on Rural Commu-
nities
The 160-kilometre Moloto Road corridor, linking Gauteng, Mpumalanga, and Limpopo, has
historically been one of South Africa’s most dangerous and economically underserved routes.
The South African government’s R4.5 billion investment to upgrade the road under the man-
agement of the South African National Roads Agency (SANRAL) represents far more than an
engineering project; it is a deliberate intervention to unlock economic potential in rural com-
munities that have long been disconnected from national markets, services, and opportunity
(SANRAL, 2024; SAnews, 2023). The sections below outline the key economic growth effects
this upgrade is expected to generate.
1.1.1 Improved Market Access for Rural Businesses
Improved road infrastructure directly reduces transport costs and travel time, which lowers
the barrier for rural businesses to reach urban markets (World Bank, 2020). The upgraded
Moloto Road, widened to four lanes and fitted with modern safety features, will enable local
businesses in the 55 villages of the Dr JS Moroka municipality and 50 villages in the Them-
bisile Hani Local Municipality to distribute goods to Pretoria and Johannesburg more quickly
and at lower cost (News24, 2024). Transport Minister Mbalula confirmed that the upgrade
would enable small farmers to bring their produce to markets and facilitate the movement
of goods, services, and people (SAnews, 2023). For small traders who previously could not
reliably transport goods due to road damage, the upgrade represents a structural opening of
new commercial channels.
1.1.2 Increased Employment Opportunities and Labour Mobility
Road upgrades stimulate employment at two levels: during the construction phase and over
the long term through improved labour mobility. The Moloto Road project alone is projected
to generate approximately 12,500 jobs, with specific targets for women, youth, persons with
disabilities, and military veterans (TimesLive, 2024). SANRAL has committed that a mini-
mum of 30% of the project value will be subcontracted to SMMEs with at least 51% black
ownership, directly channelling economic activity into the communities surrounding the road
(News24, 2024). At the labour mobility level, an upgraded road enables workers from rural
areas to commute reliably to employment centres in Tshwane and other urban nodes, expand-
Page 2 of 14
