UNIVERSITY OF SOUTH AFRICA (UNISA)
College of Economic and Management Sciences
⋄
TRL3702 ASSESSMENT 01
Semester 1, 2026
⋄
Module Code: TRL3702
Module Name: Transport Economics
Student Name: [Insert Your Name]
Student Number: [Insert Student Number]
Assignment No.: 01
Due Date: [Insert Due Date]
Semester: Semester 1, 2026
Unique Number: [Insert Unique Number]
Submitted in partial fulfilment of the requirements for TRL3702: Transport Economics
at the University of South Africa.
, UNISA | TRL3702 Transport Economics Assessment 1
Question 1: The Moloto Road Upgrade and Its Economic Growth Effects
The Moloto Road (R573) is a 138-kilometre corridor that traverses Gauteng, Mpumalanga,
and Limpopo, linking Pretoria to densely populated rural settlements and small towns along
the route. In 2020, the South African government confirmed a major investment of over R4.5
billion through the South African National Roads Agency (SANRAL) to upgrade the road to
a four-lane carriageway with improved lighting, fencing, traffic circles, and safety features
(SAnews, 2020). Transport Minister Barbara Creecy confirmed in November 2024 that the
upgrade was advancing steadily, with economic impact positioned as a central objective
of the project (Times Live, 2024). This question examines the economic growth effects of
that upgrade on rural communities along the corridor and presents a short report on those
impacts.
1.1 Economic Growth Effects of the Moloto Road Upgrade on Rural Communities
Improved Market Access for Rural Businesses
A well-maintained, high-capacity road directly reduces transport costs for businesses operat-
ing in rural areas along the Moloto corridor. Lower vehicle operating costs and reduced travel
times translate into broader market reach for goods and services that were previously con-
fined to local trade. Rural entrepreneurs in towns such as KwaMhlanga and Marble Hall, for
example, can now move products to Pretoria and Johannesburg with greater reliability and at
a lower cost per trip (Hlotywa and Ndaguba, 2017). According to the theory of infrastructure-
led growth, investment in transport infrastructure reduces the effective distance between
production sites and markets, stimulating private sector activity and raising incomes in under-
served areas (Aschauer, 1989, cited in Hlotywa and Ndaguba, 2017).
Increased Employment Opportunities and Labour Mobility
The upgrade project is itself a significant employment generator. SANRAL confirmed that the
project is expected to create approximately 12,500 jobs, with deliberate inclusion of women,
youth, persons with disabilities, and military veterans (Times Live, 2024). Beyond direct con-
struction employment, the improved road increases labour mobility; workers living in settle-
ments along the corridor can more reliably commute to employment centres in Tshwane and
the East Rand. This spatial integration of labour markets is a well-documented mechanism
Page 1 of 14
College of Economic and Management Sciences
⋄
TRL3702 ASSESSMENT 01
Semester 1, 2026
⋄
Module Code: TRL3702
Module Name: Transport Economics
Student Name: [Insert Your Name]
Student Number: [Insert Student Number]
Assignment No.: 01
Due Date: [Insert Due Date]
Semester: Semester 1, 2026
Unique Number: [Insert Unique Number]
Submitted in partial fulfilment of the requirements for TRL3702: Transport Economics
at the University of South Africa.
, UNISA | TRL3702 Transport Economics Assessment 1
Question 1: The Moloto Road Upgrade and Its Economic Growth Effects
The Moloto Road (R573) is a 138-kilometre corridor that traverses Gauteng, Mpumalanga,
and Limpopo, linking Pretoria to densely populated rural settlements and small towns along
the route. In 2020, the South African government confirmed a major investment of over R4.5
billion through the South African National Roads Agency (SANRAL) to upgrade the road to
a four-lane carriageway with improved lighting, fencing, traffic circles, and safety features
(SAnews, 2020). Transport Minister Barbara Creecy confirmed in November 2024 that the
upgrade was advancing steadily, with economic impact positioned as a central objective
of the project (Times Live, 2024). This question examines the economic growth effects of
that upgrade on rural communities along the corridor and presents a short report on those
impacts.
1.1 Economic Growth Effects of the Moloto Road Upgrade on Rural Communities
Improved Market Access for Rural Businesses
A well-maintained, high-capacity road directly reduces transport costs for businesses operat-
ing in rural areas along the Moloto corridor. Lower vehicle operating costs and reduced travel
times translate into broader market reach for goods and services that were previously con-
fined to local trade. Rural entrepreneurs in towns such as KwaMhlanga and Marble Hall, for
example, can now move products to Pretoria and Johannesburg with greater reliability and at
a lower cost per trip (Hlotywa and Ndaguba, 2017). According to the theory of infrastructure-
led growth, investment in transport infrastructure reduces the effective distance between
production sites and markets, stimulating private sector activity and raising incomes in under-
served areas (Aschauer, 1989, cited in Hlotywa and Ndaguba, 2017).
Increased Employment Opportunities and Labour Mobility
The upgrade project is itself a significant employment generator. SANRAL confirmed that the
project is expected to create approximately 12,500 jobs, with deliberate inclusion of women,
youth, persons with disabilities, and military veterans (Times Live, 2024). Beyond direct con-
struction employment, the improved road increases labour mobility; workers living in settle-
ments along the corridor can more reliably commute to employment centres in Tshwane and
the East Rand. This spatial integration of labour markets is a well-documented mechanism
Page 1 of 14
