The Gauteng provincial government has made significant progress in settling its R20 billion e-toll debt, paying nearly half of its share to the National Treasury. This week, the province transferred R5.4 billion as part of its commitment to take over the debt and relieve residents of the payment obligation.
Under an agreement between the provincial and national governments, Gauteng is responsible for 30% of the total e-toll debt, amounting to R12.9 billion, while the national government covers the remaining 70%. However, additional costs, including interest and road maintenance backlogs, bring Gauteng’s total financial obligation to R20 billion over five years.
Residents No Longer Liable for E-Tolls
Gauteng MEC for Finance and Economic Development, Lebogang Maile, confirmed that motorists would no longer be required to pay e-toll fees. “Residents will no longer be obligated to pay their e-toll debt,” Maile stated. “The province and national government have taken on the responsibility to settle it.”
The move aims to ease the financial burden on Gauteng commuters, who have long protested the e-toll system. However, Maile acknowledged that the debt repayment has strained the provincial budget.
Financial Strain, but Essential Services Protected
While the repayments have diverted funds from other projects, Maile assured residents that critical services such as education, healthcare, and social services would remain prioritized. “It will obviously divert resources meant for other things, but we must stick to the agreement,” he said. “The good news is that we can still fund essential services and pay salaries.”
The MEC admitted that without the debt, the province could have allocated more funds to infrastructure and development. Nevertheless, he emphasized that Gauteng remains financially capable of meeting its obligations.
Negotiations for Extended Payment Period
To mitigate the financial impact, the provincial government is exploring additional revenue streams and negotiating with the National Treasury to extend the repayment period. This would allow Gauteng to balance debt servicing with other pressing responsibilities.
The e-toll system, introduced over a decade ago to fund road upgrades, faced widespread resistance, leading to low compliance rates. The current debt takeover marks a significant step toward resolving the long-standing issue, though Gauteng’s financial planners now face the challenge of managing repayments without compromising service delivery.
As the province works toward fully settling the debt, residents can expect continued updates on repayment progress and potential adjustments to the financial agreement with National Treasury.
