Infrastructure growth drives economy

Infrastructure development as a primary driver of the economy was a major emphasis in the budget in February. However, in reporting and discussing the budget, the focus was on aspects that directly touch consumers - like the hike in VAT.

In this regard two aspects of the government's emphasis stand out. One is that most of the initiatives announced in the budget to transform the economy, create jobs and accelerate delivery of government services are dependent on a well-managed road network.

The second, which cannot be read separately from the first, is that the thorny issue of funding the high-quality roads in the country was addressed. The budget statement left no doubt about its two-pronged approach: it reiterated the government's commitment to road tolling and added that a cabinet committee is considering a tariff determination framework to oversee the setting of road tolls.

Currently only 13% of the Sanral road network of more than 22 000 km is funded through tolling.

The remarks in the budget on tolling follow closely on President Cyril Ramaphosa's commitment to policy certainty and the creation of a stable environment to attract investment and economic activity.

Pressure on the national roads agency is, however, increased by the fact that its budget allocation was cut by R2.6 billion.

Included in the agency's R29.1 billion budget for capital investment in non-toll roads are allocations for the upgrade of the Moloto Road (R4.3 billion), the N2 Wild Coast highway (R2.1 billion) and the strengthening and maintenance of roads (R18.2 billion).

The budget also highlighted government achievements in the management of public-private partnerships on important infrastructure projects, including Sanral-led initiatives such as the N3 and N4 toll roads and the Gauteng Freeway Improvement Project.

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