BRICS loan secures R7 billion for South Africa’s road upgrades

The South African National Roads Agency (Sanral) will secure a R7 billion loan from the New Development Bank (NDB) to finance major upgrades to the country’s transport infrastructure.

Officials announced the deal during a loan agreement signing ceremony held in Johannesburg on Tuesday.

Sanral CEO Reginald Demana confirmed that the loan still requires final approval, including legal clearance from the state law adviser and foreign exchange authorisation 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.

Sanral will use the funding to support a R12.7 billion upgrade of four major freeways, along with other national road projects.

This deal gives a major boost to infrastructure development, coming shortly after the government resolved challenges linked to Sanral’s controversial e-tolling system.

From deadlock to green light

In 2019, Sanral failed to secure funding from the NDB after the National Treasury raised concerns about legacy debt tied to the now-defunct Gauteng e-toll system.

The government had introduced the system to fund freeway expansions in the country’s economic hub, but it sparked widespread public and political opposition.

Now that the tolling issue has been resolved, the state has approved a R16.5 billion debt ceiling for Sanral, paving the way for further infrastructure loans.

“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, which the BRICS bloc (Brazil, Russia, India, China, and South Africa) founded in 2015, focuses on funding infrastructure and sustainable development projects in member and emerging economies.

By granting the loan to Sanral, the bank is reinforcing its growing role in backing key infrastructure investments in South Africa.

Once the necessary approvals are finalised, the loan is expected to fast-track crucial freeway upgrades that boost trade, improve mobility, and drive 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.