R20 Billion E-Toll Debt Forces Gauteng to Cut Deep Into Budget

The Gauteng provincial government has paid nearly R7.2 billion towards its share of the R20 billion e-toll debt, with more multi-billion rand instalments scheduled over the next four years — a move that is placing growing pressure on the province’s public services and financial reserves.

Gauteng Premier Panyaza Lesufi confirmed that the province remains committed to settling its 30% portion of the historical e-toll debt, estimated at R15.9 billion, plus an additional R4.1 billion allocated for the rehabilitation of major freeways. This brings the total long-term financial burden to nearly R20 billion.

Multi-Billion Rand Instalments Already Paid

The province made its first payment of R3.8 billion in September 2024, followed by a second payment of R3.377 billion in June 2025. According to provincial officials, annual payments of between R2 billion and R3 billion will continue until 2028/29 to complete the settlement.

Despite the financial strain, Lesufi said the payments are essential to finalise the long-delayed phase-out of the e-tolling system, which was officially deactivated in April 2024.

“This is a debt inherited by the people of Gauteng. While we are under fiscal pressure, we are making these payments responsibly and will protect essential services,” Lesufi told reporters at a press briefing.

Civil society groups, including the Organisation Undoing Tax Abuse (OUTA), have raised alarms over the impact of the debt repayments on Gauteng’s budget. Reports of delayed funding to NGOs, education programs, and public health services have increased in recent months.

“We are concerned that Gauteng residents are being made to bear the cost of a failed scheme through reduced service delivery,” said OUTA CEO Wayne Duvenage.

The provincial treasury has not confirmed whether any specific departments will face cuts, but acknowledged that “hard decisions” are being made in the annual budgeting process to accommodate the debt.

Motorists Still Liable for Outstanding E-Toll Bills

Although the e-toll gantries were switched off in April 2024 and no new charges are being issued, motorists with unpaid tolls from before that date remain liable.

The South African National Roads Agency (SANRAL) confirmed that it retains the right to pursue outstanding debts. This could include linking unpaid tolls to vehicle registration renewals or using other enforcement mechanisms.

“Switching off the gantries does not erase the debt. Motorists should settle outstanding amounts where possible,” SANRAL said in a recent statement.

With the end of tolling, the responsibility for funding Gauteng’s freeway infrastructure now falls on the general tax base. All residents — drivers or not — will help finance maintenance and upgrades through indirect taxation.

The Gauteng Department of Roads and Transport has allocated over R4.1 billion for freeway rehabilitation projects, separate from the debt repayments. These include upgrades to key corridors such as the N1, N3, and R21.

The next scheduled debt instalment is expected in mid-2026, with the province affirming its commitment to complete repayments without compromising core services.