Africazine:
South Africa is adjusting its Road Accident Fund Levy to enhance road safety funding.
The levy will rise to R3.00 per litre, a strategic response to a 5% revenue decline to R48.1 billion in the 2025/26 financial year. This decrease is attributed to reduced fuel volumes, prompting the Road Accident Fund (RAF) to seek new revenue streams.
South Africa’s Road Accident Fund Levy Increase Explained
The increase in the Road Accident Fund Levy to R3.00 per litre signifies a crucial shift in South Africa’s funding strategy for road safety. This adjustment aims to counteract the financial challenges faced by the RAF, which has seen a notable drop in revenue.
In the 2025/26 financial year, the RAF’s revenue fell to R48.1 billion. The decline is primarily linked to decreased fuel consumption, which has impacted the fund’s financial stability.
South Africa: Key figures on Road Accident Fund Levy
- R3.00 per litre
- R48.1 billion
- 5%
Exploring Additional Revenue Sources for the RAF
To further strengthen its financial position, the RAF is considering additional revenue sources. These include potential levies on foreign-registered vehicles and adjustments to vehicle registration fees. Such measures aim to diversify funding and ensure the sustainability of road safety initiatives.
Next Steps for the Road Accident Fund
- Implementation of the R3.00 per litre levy
- Exploration of levies on foreign-registered vehicles
- Review of vehicle registration fees
South Africa is taking decisive steps to secure funding for road safety through increased levies.
