02 July 2025
We come to you as the African National Congress (ANC) through the Government of National Unity (GNU) at a time where we celebrate 70 years of the freedom charter and recently celebrated the youth month on the 16th June 2025. Indeed, history has no blank pages, it was in Kliptown in the year 1955 on the 26th of June where we submitted that freedom must come with; freedom of peaceful assembly, freedom of thought & belief, freedom of association, freedom of the press and other media of communication, freedom of opinion and expression and that the land belongs to all those who work it. It was the learners of 1976 on June 16 who marched against the injustice they experienced with the education system not respecting their culture, heritage, languages and providing a less primitive education when compared to the education system provided to whites in our land.
As the ANC through the GNU support this budget vote as we believe that it will provide the foundation to further the agenda of enhancing inclusive Economic Growth through Efficient and Effective Transportation System in South Africa (SA). The budget vote inspires confidence as it is in alignment with the department’s medium-term goals which are to maintain SA’s road network, support integrated road-based public transport networks and invest in infrastructure to revitalize passenger rail services, freight, and logistics infrastructure. This will enable favourable groundwork for expansion and employment development via service accessibility and inclusive economic activity. We want a budget that will have an impact on the Gross Domestic Product (GDP) of our country.
The department’s overall budget for the next three years is expected to be R287.3 billion, of which an estimated 91.5% will come from transfers and subsidies to provinces and municipalities at an amount of R101.3 billion and public entities and departmental agencies will have R161.8 billion through various grants.
It is anticipated that spending will rise from R86.4 billion in 2024 to 2025 to R95.2 billion in 2027 to 2028 at an average annual rate of 3.3%. With a substantial GDP contribution, the SA transportation industry is an essential part of the national economy. The industry which includes freight, road, rail, air, sea, and logistics, is estimated to contribute between approximately 6.5% and 9.3% of the GDP. The success of other economic sectors depends on this contribution, which affects everything from trade and tourism to job generation and general economic progress.
We believe that the current budget will invest in rail corridors infrastructure to revitalise passenger and freight rail services. R40.8 billion of the expected R66.1 billion in total transfers to the agency over the medium term are designated for capital expenditures. To fill financing gaps in the rolling stock fleet replacement program, the Passenger Rail Agency of South Africa has been given priority over the South African National Roads Agency for R2.8 billion for the MTEF term. The plan is to cut down on lead times, the nation must prioritize infrastructure upgrades, boost logistics effectiveness and use technology to improve visibility and management in South Africa’s transportation-related supply chain.
This entails making investments in rail, ports and roadways; streamlining transportation routes and using technology such as automation and real-time tracking. We believe this budget will maintain our countries road transport program supports efforts to maintain road networks, construct and upgrade road infrastructure while providing sufficient access to safer roadways. Over the Medium-Term Expenditure Framework (MTEF) period, the program is expected to receive R161.7 billion, of which R106.8 billion will go to the South African National Roads Agency, which is the main agency responsible for carrying out these goals.
The non-toll network will receive R54.9 billion of the agency’s share, while the Gauteng Freeway Improvement Project will receive R19.3 billion, the N2 Wild Coast project will receive R4.3 billion, the R573 (Moloto Road) development corridor will receive R3.2 billion and R94.2 million will be used to test and deploy a single-ticketing system for Gauteng public transportation that will enable commuters to use all public transportation facilities with a single pass. To increase trade within the Southern African Development Community (SADC), SA’s transport infrastructure must be regionally integrated. To enable the free flow of people and commodities, this integration entails creating a unified regional transportation policy, enhancing transportation infrastructure such as roads and railroads and expediting trade and customs processes.
Integrated public transportation systems based on roads
In Cape Town, Ekurhuleni, George, Johannesburg, Nelson Mandela Bay, Polokwane, Rustenburg and Tshwane, the department will distribute the public transport network grant to municipalities for infrastructure improvements and to cover the indirect costs of bus rapid transit services. Over the medium term, R22.4 billion will be allocated for the grant. Road-based public transportation services offered by provincial transportation authorities are subsidized by the public transport operations grant. We remain committed as this government to the reduction of logistical costs for global competitive environment to attract foreign investment. We do however understand that in order to lower logistical costs, boost global competitiveness and draw in foreign investment, South Africa’s transportation industry is essential.
Efficient logistics systems and better transportation infrastructure can save expenses for distributors and manufacturers alike, speed up deliveries, cut down on waste and increase access to business knowledge. This increases the nation’s appeal to foreign investors and providers. We need to acknowledge that we still need to improve our systems as government to be better prepared for an unpredictable economic climate which directly affects transportation plans in this country. The transportation industry in our country has always been cyclical and highly dependent on the state of the economy. We need to address supply chain challenges which are affected by the economy through a rising cost-of-living, extreme inflationary pressure and sharply rising interest rates have all forced many businesses to adjust in recent years.
Maintaining successful operations in the face of all of these challenges is a never-ending task, particularly when future events are unpredictable. For us, we believe that as we support the budget, there must be a mechanism to make sure that we implement our budgetary obligations. We need to create and develop strategies that will guarantee that underspending is further minimized by asking National Treasury to remove cost containment restrictions pertaining to departmental openings so that appropriately qualified candidates can be appointed to management roles. Projects and implementation programs will benefit from this.
I thank you