National Treasury has announced the phased termination of the Public Transport Network Grant, citing nearly two decades of underperformance against its modernization objectives. Officials presented the decision to Parliament’s Portfolio Committee on Transport, outlining plans to wind down the program over the next three years to redirect funding toward higher-impact priorities.
First launched in 2007 as part of an ambitious strategy to upgrade South Africa’s public transport infrastructure—with the 2010 FIFA World Cup accelerating initial investment—the grant targeted 13 cities with substantial funding. According to Treasury data presented to MPs, the program was allocated just under 95 billion rand, with 88 billion rand transferred to implementing entities and just over 75 billion rand actually expended.
Despite the significant investment, officials acknowledged that outcomes have fallen short of expectations. Transport Minister Barbara Creecy stated that the model has failed to achieve its core objectives. “It can’t be acceptable for a publicly funded grant, a grant that is funded by taxpayers’ money, to underperform for almost 20 years,” Creecy told the committee.
Treasury officials noted that only a handful of projects delivered meaningful results, with commuter uptake remaining low compared to other transport modes, particularly the minibus taxi industry. Challenges cited included municipalities struggling with planning capacity, technical expertise, and effective deployment of allocated funds; in some cases, projects never progressed beyond initial stages.
The department signaled a strategic shift from an infrastructure-heavy approach toward operations-focused interventions. Future transport contracts will prioritize passenger movement outcomes rather than capital expenditure on physical infrastructure alone.
Members of the Portfolio Committee expressed concern over the announcement, questioning why warning signs were not addressed earlier, what will become of incomplete projects, and how daily commuters will be affected. One committee member noted, “There has not been sufficient oversight on this project. We cannot continue to pump money into something which is not working,” and pressed officials to outline concrete next steps from both Treasury and the Transport Department.
As the grant enters its three-year phase-out period, authorities face mounting pressure to ensure a seamless transition that safeguards commuter access while redirecting resources toward more effective public transport solutions.
