Cabinet has approved the write-off of nearly R29 billion in outstanding historical Gauteng Freeway Improvement Project (GFIP) e-toll debt, effectively closing the book on one of South Africa’s most contested infrastructure funding systems.
The South African National Roads Agency (Sanral) will no longer pursue recovery of any remaining historical e-toll debt following the decision, which comes after the official closure of the GFIP e-toll scheme and the withdrawal of toll declarations in April 2024.
However, government confirmed that motorists who complied and paid e-tolls while the system was legally in force will not be refunded.
Transport Minister Barbara Creecy and Deputy Minister Mkhuleko Hlengwa welcomed the decision, describing it as a necessary step toward finalising the long-running dispute.
“This decision is long overdue and allows us to bring closure to the GFIP e-toll matter in an orderly and responsible manner,” the department said, adding that it provides “certainty and resolves historical debt matters.”
Government also stressed that the broader funding principle remains unchanged, stating that “the user-pay principle remains an important part of South Africa’s road infrastructure funding framework,” provided it is applied in a legally sound and agreed-upon manner.
The Organisation Undoing Tax Abuse (Outa) also welcomed the move, saying the system had effectively collapsed due to poor compliance.
“This system was launched in 2013… you would think this should have been resolved 10 years ago because the writing was on the wall,” said Outa CEO Wayne Duvenage.
He added that the decision was “the final nail in the coffin” for e-tolls, although some legal disputes between Outa and Sanral remain unresolved.
Sanral previously reported that nearly R29 billion in e-toll receivables had been fully impaired, meaning they were considered effectively uncollectable due to low recovery prospects.
The policy shift follows government’s broader agreement on how the debt will be absorbed, with the Gauteng Provincial Government covering 30% and National Treasury covering the remaining 70%, alongside additional funding for road maintenance.