Gauteng Commits R4.1bn to Freeways Revival & E-toll Debt Resolution

The Gauteng provincial government in South Africa has made a decisive move towards boosting its infrastructure and public services by allocating R4.1 billion to the maintenance of its freeways. This considerable investment is part of a strategic compromise to dismantle the controversial e-toll system by the end of March, as announced by Gauteng finance MEC Jacob Mamabolo. The announcement came during the tabling of the province’s 2024/2025 financial year budget.

MEC Jacob Mamabolo shared with journalists the complexity and challenges faced during negotiations to resolve the e-tolling issue, which has dragged on for years, often sparking public dissent. The provincial government has agreed to shoulder 30% of the e-toll debt that amounts to R12.9 billion, a commitment made towards the Gauteng Freeway Improvement Project (GFIP). This decision follows the National Treasury's commitment in 2022 to handle the remaining debt, thereby concluding the e-toll saga.

The province's plan to finance this settlement includes approaching various financial institutions, indicating a proactive stance to meet its obligations. The demise of the e-tolls will transition into tangible outcomes as the government prepares to halt toll collections and cease all associated billing activities. Despite gantry lights and cameras remaining operational, their purpose will shift exclusively to support other law enforcement functions.

Adding to the province's robust financial plan, the total Gauteng budget for the 2024/2025 financial year has seen an increase of 2.5%, now sitting at R165.8 billion. Funding in crucial areas such as education and health has been prioritized with each sector witnessing a 4% increase in their budget. The education sector, in particular, has been bolstered significantly, receiving the largest budget slice at R65.8 billion. It includes comprehensive funding for various educational programs and aims to extend universal access to grade R.

Similarly, the health sector has also been allocated R64.83 billion, a testament to the government's commitment to improving public health services. Together, education and health account for a staggering 90% of the Gauteng government workforce, proving their critical importance within the provincial budget priorities.

Additionally, focused endeavors to fight crime have led to an increased allocation for the department of community safety, now set to receive R2.3 billion with anticipated growth over the next few years. This boost is designed to improve law enforcement capabilities with the inclusion of innovative crime-fighting tools such as drones and a provincial integrated command center.

Another substantial allocation is the R3.2 billion earmarked for the Gauteng department of infrastructure development. This funding is dedicated to the maintenance of provincial assets, laying a foundation for sustainable development and progressive public asset management.

The unveiling of the province’s fiscal strategy points towards an age of reinvigorated infrastructure, enhanced public services, and a commitment to safety and well-being of its citizens. Such a detailed budget underscores a promising future for Gauteng, as it paves the way for the province to thrive without the burden of the e-toll system.