12 May 2026

(6 minutes)

It is important to note that the African National Congress (ANC) leading the Government of National Unity (GNU) declares its support for the budget. We believe that the budget will allow government to enhance economic growth and development for the economy and our people, modernizing public transportation, repairing rail and enhancing safety, particularly in the taxi sector and student transportation are given top priority in the ANC’s 2024 Manifesto. Reducing commuter expenses, implementing eco-friendly technologies like electric cars and bolstering infrastructure to guarantee quicker, safer transportation are important objectives of the ANC. Rail and Logistics Reform is needed in South Africa (SA) to increase commerce, lower transportation costs and cut emissions, strict regulation of the taxi sector to handle unroadworthy cars, overloading and careless driving still remains a key focus area and reform in the transportation sector.

Implementing contemporary technology to boost operational efficiencies in the flow of people and commodities and making investments in transport infrastructure that promotes economic growth, the Department of Transport and its organizations continue to play a crucial role in furthering these aims. We support and understand the budget because we see its focus on improving the country’s Gross Domestic Product (GDP) and how it will help the transport sector to reduce lead times in our Supply Chain Management (SCM) Networks to assist government and business operations. The budget allows the department of transport to reduce logistical costs to promote an environment that is friendly towards global competitiveness for purposes of trade and attracting foreign investment and also contributing to road safety. An integrated, sustainable, dependable and secure transportation system is provided under the direction of the Department of Transportation.

The department anticipates receiving R313.5 billion over the MTEF period, with total spending rising to R112.3 billion by 2028–2029 while 94.4% (R296 billion) of this budget is made up of transfers and subsidies to entities, demonstrating the state-led investment in public infrastructure. Rail Recovery; between 2018–19 and 2025–2026, 35 lines have been completed and restored, with the remaining 5 being anticipated in the period 2026–2027. The Rail Transport program received R98 billion to support these operations, of which R95.6 billion goes to Passenger Rail Agency of South Africa (PRASA) for capital and operating expenses.

We must also remember in 2024–2025, R21.1 billion in capital spending created 71,730 new job opportunities and also in the same period, 354 people worked at PRASA as apprentices, interns, trainees and integrated workplace learners. On PRASA Signalling and Telecommunication System Upgrade; rail lines that have experienced significant theft and vandalism are being re-signalled as part of PRASA’s refurbishing and improvement program. Re-signalling will help achieve the objective of returning to pre-pandemic passenger numbers by increasing the frequency of passenger service. Signalling cost were at R 1.89 billion in 2024–2025 and this is according to PRASA’s own estimate, for every million dollars spent on signalling, 1.6 jobs will be created. Re-signalling’s wider economic impact will make rail services more accessible, giving working-class people access to job possibilities.

Port Efficiency; Transnet will get R1.8 billion in 2026–2027 for the north corridor restoration project for modernizing capacity to alleviate bottlenecks in operations by the entity. Phase 2b of the Cape Town container terminal, which will improve the handling capacity of 20-foot equivalent units (TEUs), will also receive R974.5 million. Road Safety; the goal of targeted road improvements is to guarantee that carriers carrying about 80% of South Africa’s freight load have access to safe roadways. R167.4 billion is given to the Road Transport program, of which R99.9 billion is allocated to SANRAL, with an expected budget of R127.3 million in 2025–2026 and R144.6 million in 2028–2029, the Cross-Border Road Transport Agency prioritizes law enforcement.

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Reduction of Greenhouse Gas Emissions & Just Transition; submitting the green transport strategy to Cabinet and holding public consultations on the transport just transition plan, the department hopes to reduce greenhouse gas emissions by March 2027. This entails updating rail to move freight from road to rail and putting the national road safety strategy into action, the ANC through its manifesto placed a high priority on lowering transportation-related greenhouse gas emissions through the modernization of commuter rail, the promotion of electric vehicles (EVs) and the transfer of freight from road to rail. The movement places a strong emphasis on a “just transition” that preserves jobs, increases industrial capacity for green technology and boosts the effectiveness of public transportation.

I thank you