SANRAL Spends R27.1 Billion on Road Infrastructure, Exceeding Key Targets for 2023/24

SANRAL CEO Reginald Demana emphasized that the investment underscores SANRAL's commitment to improving South Africa’s road infrastructure.

Focus on Maintenance, Job Creation, and Black-Owned Enterprises

The South African National Roads Agency SOC Limited (SANRAL) reported a significant expenditure of R27.1 billion on road infrastructure in the 2023/24 financial year, with R4.1 billion allocated to toll roads and R23 billion for non-toll roads. Of the non-toll road expenditure, R12.3 billion went towards capital projects and R10.7 billion was spent on road maintenance.

SANRAL CEO Reginald Demana emphasized that the investment underscores SANRAL's commitment to improving South Africa’s road infrastructure. "These investments are essential to ensuring safer, more efficient mobility for all South Africans," Demana said.

In terms of financial performance, SANRAL’s total assets grew by 17% to R772 billion, with operating and investing activities increasing by 23% and 7%, respectively. Demana highlighted the organization’s achievements, stating that many targets had not only been met but significantly exceeded.

Exceeding Targets for Road Maintenance and Black-Owned Enterprise Participation

SANRAL reported resurfacing 1,984 km of roads, surpassing its original target of 1,200 km—an impressive increase from 687.9 km in the previous year. This reflects the agency's strong focus on maintaining and managing its assets.

In addition to engineering projects, SANRAL exceeded its goals in job creation, transformation, and support for Black-owned small, medium, and micro enterprises (SMMEs). The agency achieved 99.6% of its routine road maintenance (RRM) work through Black-owned SMMEs, against a target of 75%.

SANRAL had aimed for 1,800 SMMEs to participate in its projects but surpassed this with 2,249 involved, up from 1,928 in the previous year. Moreover, SANRAL created 12,652 full-time equivalent (FTE) jobs, exceeding the target of 12,000 and improving on last year's figure of 11,366.

Future Outlook: Solid Financial Standing and Continued Growth

Looking ahead, SANRAL is well-positioned for further expansion, with R87 billion allocated by the National Treasury over the next three years. The agency’s borrowing capacity has also increased to R16.5 billion, enabling it to fund larger-scale projects.

Demana noted that SANRAL currently manages a 24,384 km network, with an additional 3,350 km of provincial roads under assessment for potential transfer. "It has been a challenging year, but we have risen to those challenges, maintaining our commitment to infrastructure development, economic growth, and transformation," Demana said.

He emphasized SANRAL's ongoing dedication to job creation, community upliftment, and economic empowerment, particularly through the inclusion of Black-owned enterprises. "Our projects will continue to catalyze positive change for generations to come," Demana concluded.

With increased funding, borrowing capacity, and accelerated project execution, SANRAL is set to further enhance South Africa's road infrastructure while contributing significantly to job creation and economic development.