The South African National Roads Agency (Sanral) is set to access a R7 billion loan from the New Development Bank (NDB) to fund major upgrades to the country’s transportation infrastructure.
The announcement was made during a loan agreement signing ceremony in Johannesburg on Tuesday.
Sanral CEO Reginald Demana confirmed that final approval is pending legal and regulatory processes, including a legal opinion from the state law adviser and foreign exchange clearance from the South African Reserve Bank.
“The state law adviser must give a legal opinion that it’s all sound; we expect that to come within the next two weeks,” said Demana.
The funding will go toward a R12.7 billion upgrade of four major freeways, alongside additional national road projects.
The deal marks a significant boost for infrastructure development following the government’s recent resolution of issues surrounding Sanral’s controversial e-tolling system.
From deadlock to green light
In 2019, Sanral’s attempt to access funding from the NDB faltered due to the National Treasury’s concerns over legacy debt linked to the now-scrapped Gauteng e-toll system.
That system had been introduced to finance freeway expansions in the country’s economic hub but faced public and political backlash.
With the tolling matter now resolved, the state has approved a R16.5 billion debt ceiling for the agency, clearing the path for more infrastructure borrowing.
“We still need to go to the market to raise additional funding,” Demana said, adding that Sanral is engaging domestic institutions, bond investors, banks, and other development finance institutions to meet its broader funding needs.
“The NDB might also be interested to look at more rand funding as part of that.”
BRICS-backed infrastructure boost
The New Development Bank, established in 2015 by the BRICS bloc (Brazil, Russia, India, China, and South Africa), aims to support infrastructure and sustainable development projects across member and emerging economies.
The loan to Sanral highlights the growing role of BRICS-aligned institutions in supporting strategic infrastructure investments in South Africa.
Once all approvals are secured, the loan is expected to accelerate progress on much-needed freeway upgrades that support trade, mobility, and economic growth.
Key freeway upgrades to be funded by the loan
According to Sanral, the loan specifically targets critical economic corridors, namely:
- N2 – especially crucial sections in KwaZulu-Natal that support port access and regional commerce
- N3 – the primary trade route between Johannesburg and Durban, vital for freight movement
- N1 – a central north-south artery running through Gauteng and beyond
These upgrades will include adding lanes, resurfacing pavement, and rehabilitating related infrastructure such as bridges and intersections.
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