You may or may not be shocked to learn that South Africa had plans to shut down e-tolls by the end of 2022. You definitely won’t be shocked to learn that the shutdown has been delayed until some time in 2023. In South Africa, we’d be more worried if the shutdown had taken place when it was supposed to.
Back in November, finance minister Enoch Godongwana announced that the National Treasury had set a date of 31 December for the scheme to be shut down.
On 31 December, the Gauteng Premier’s Office released a statement, stating that “due to the need to finalise key components of the MOU (memorandum of understanding) between the National Government and the Provincial Government, the matter will be finalised in the new year (2023)”. The statement failed to mention any solid dates the public could expect to stop paying for e-tolls. Well, pretending to pay, anyway.
“Over the past few years, the authorities have indicated several dates and deadlines for the defunct scheme to be scrapped and missed them all,” said the civil action group, Outa.
Read More: Government considering a ‘hybrid model’ to pay off R12.9 billion e-tolls debt
Footing the bill
The official shutdown must be preceded by an official statement from the Department of Transport declaring Gauteng’s freeways are no longer toll roads. The e-toll switch-off will only take place two weeks after the release of the gazette notice. Until the MOU has been agreed upon, Sanral will still be able to charge for e-tolls.
The e-toll shutdown isn’t all we have to worry about. There’s still the matter of e-toll debt to worry about. Back in November, the Gauteng provincial government pledged R12.9 billion to pay off some of the debt. Yes, some. The total debt owed is somewhere in the region of R43 billion.
Gauteng premier Panyaza Lesufi announced that a ‘hybrid model’ would be launched in an effort to try and repay Gauteng’s portion of the debt over the long term. We’re still in the dark about how this model will work, and who exactly would be paying the bill. A provincial tax is on the table, though we’re (obviously) hoping the government doesn’t go this route.
For now, e-tolls are sticking around. But that shouldn’t be the case for much longer (we hope).
