The South African National Roads Agency SOC Limited (Sanral) reported a substantial expenditure of R27.1 billion for the 2023/24 financial year. This investment was divided between toll and non-toll roads, with R4.1 billion allocated to toll roads and R23 billion to non-toll roads. Of the non-toll road budget, R12.3 billion went to capital projects, while R10.7 billion was dedicated to maintenance efforts. “These investments in both toll and non-toll roads reflect our commitment to improving South Africa’s road infrastructure, aiming for safer and more efficient transportation,” said Sanral CEO Reginald Demana.
Sanral’s total assets reached R772 billion, marking a 17% increase from the previous year. Operating and investing activities also saw growth, rising by 23% and 7%, respectively.
Demana highlighted that many goals were not only met but significantly surpassed.
“In terms of engineering, we aimed to resurface 1,200 kilometers of our network but managed to complete 1,984 kilometers, a significant increase from 687.9 kilometers in the previous year. This demonstrates our strong focus on maintaining and managing our assets,” said Demana.
Transformation and Job Creation
Beyond engineering, Sanral exceeded targets in areas like transformation, job creation, road safety, and capacity development. The agency achieved 99.6% of its Routine Road Maintenance (RRM) work through Black-owned small, medium, and micro enterprises (SMMEs), surpassing its target of 75%.
Sanral also exceeded its target for SMME participation in agency projects, reaching 2,249 SMMEs, compared to the target of 1,800 and the previous year’s total of 1,928.
In terms of job creation, Sanral aimed to create 12,000 full-time equivalent (FTE) jobs but surpassed that goal with 12,652 jobs, up from 11,366 in the previous year.
Looking ahead, Sanral’s financial outlook remains strong, with R87 billion allocated by the National Treasury over the next three years. The agency’s borrowing capacity has increased to R16.5 billion, enabling it to fund larger-scale projects. The rapid pace of project execution has led to a reduction in cash reserves due to faster spending.
Infrastructure Development
Demana credited these achievements to strategic and operational growth.
“Sanral continues to grow, with our network now extending over 24,384 kilometers, along with an additional 3,350 kilometers of roads under assessment for potential transfer from provincial authorities.
“It’s been a challenging year in many respects, but we’ve met those challenges head-on, driven by our commitment to infrastructure development that supports economic growth and transformation.
“Our focus on creating opportunities for Black-owned enterprises remains at the core of our mission. Moving forward, we will ensure that our projects contribute to job creation, community upliftment, and the economic empowerment of South Africans.
“We are committed to these developmental goals, and through our investments, we will continue to drive positive change for future generations,” Demana concluded.
