Gauteng Provincial Government Moves Forward with E-Toll Debt Payments
In a significant financial commitment, the Gauteng Provincial Government (GPG) is set to pay R3.3 billion today to settle a portion of its outstanding e-tolls debt. This announcement was made by Gauteng’s MEC for Finance and Economic Development, Lebogang Maile, during a media briefing over the weekend. The move marks another step in a long-standing negotiation aimed at streamlining transportation funding in the province.
The contentious e-toll system, which faced widespread opposition from road users, was scrapped last year after a mutual agreement between the provincial government and the National Treasury. This decision has since paved the way for a fresh financial strategy where GPG committed to covering about 30% of the historic debt owed, which portrays a proactive approach towards addressing the issue.
MEC Maile elaborated on the financial details, “The Gauteng Provincial Government will honour its obligation by paying the second instalment towards the e-tolls debt, disclosed in the 2025 Medium Term Expenditure Framework. This specific amount, per the Memorandum of Agreement, is R3.3 billion of the historic debt we owe.” This latest payment follows a previous instalment of R3.8 billion made on September 30, 2024, which included R3.2 billion in historical debt along with R546 million dedicated specifically to maintenance.
The total financial liability concerning the e-tolls structure amounts to R15.9 billion, which factors in interest payments along with the principal debt. To effectively manage this significant payment, GPG has structured the repayments into five equal annual installments based on government interest rates.
In addition to fulfilling its debt obligations, the Gauteng Provincial Government has further committed R4.1 billion to rehabilitate nine major projects under the Gauteng Freeway Improvement Project 1. This initiative aims to enhance the road network within the province, ultimately contributing to improved infrastructure and transportation efficiency.
MEC Maile emphasized the province’s commitment to fiscal responsibility, noting, “Since making this announcement, we have maintained the necessary fiscal discipline to ensure adherence to this commitment.” The proactive steps taken by Gauteng in managing the e-tolls debt demonstrate a commitment to not just stable governance but also to the improvement of transportation infrastructure across the province.
With these developments, Gauteng sets a strong precedent for other provinces, illustrating how sound fiscal policies and community engagement can transform contentious issues into collaborative regional progress.
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