South Africans skeptical that R7 billion BRICS loan will improve roads
South Africans doubt that the funds will actually be spent on upgrading roads and highways nationwide.
On Wednesday, reports confirmed that the South African National Roads Agency (Sanral) plans to secure a R7 billion loan from the New Development Bank (NDB) to finance major upgrades to the country’s transport infrastructure.
Sanral CEO Reginald Demana said the deal still requires final approval, including a legal opinion from the state law adviser and foreign exchange clearance from the South African Reserve Bank.
The agency has allocated the funding toward a R12.7 billion upgrade of four major freeways and other 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.
South Africans are sceptical
However, many South Africans doubt whether the money will actually go toward fixing the country’s roads and highways.
Here are just a few comments shared by sceptical citizens:
Where is Ramaphosa & his band of ANC bandits building his next “BRICS” mansion? – Trevor
Only 1 million is left as we speak – Victor
New swimming pool for Cyril – Anton
The only road fixed will be to the bank – Ingrid
Ready, steady loot – Nick
Gonna fix there pockets – Faadhil
Obviously 70% is going to Ramaphosa’s pocket – Misheck
We can be assured that 70 to 80 percent will be filling the pockets of the gravy cabal – Faried
Are they nuts giving South Africa money – Heather
More likely to fix the roads to fat cats villa’s in Dubai – Ken
From deadlock to green light
In 2019, the National Treasury raised concerns about legacy debt from the now-scrapped Gauteng e-toll system, causing Sanral’s attempt to secure funding from the NDB to fail.
The government had introduced the e-toll system to finance freeway expansions in the country’s economic hub, but public and political backlash derailed it.
Now that the tolling issue is resolved, the state approved a R16.5 billion debt ceiling for Sanral, paving the way for the agency to borrow more for infrastructure projects.
BRICS-backed infrastructure boost
The BRICS bloc (Brazil, Russia, India, China, and South Africa) established the New Development Bank in 2015 to support infrastructure and sustainable development projects across member and emerging economies.
By granting the loan to Sanral, the bank demonstrates the expanding role of BRICS-aligned institutions in backing key infrastructure investments in South Africa.
Once authorities approve the loan, it will speed up essential freeway upgrades that enhance 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.