SANRAL secures R7 billion loan. Image: SANRAL Facebook page
(The Post News)- The South African National Roads Agency (SANRAL) has secured a R7 billion loan from the New Development Bank (NDB), an institution formed by the BRICS nations in 2015 to finance infrastructure and sustainable development projects in member states and other emerging economies.
The funds will support the upgrade of key national freeways, including:
- The N2 in KwaZulu-Natal
- The N3, linking Johannesburg and Durban
- The N1, a central north-south corridor through Gauteng
SANRAL CEO Reginald Demana, speaking at the signing ceremony in Johannesburg, said the agency is awaiting guidance from the State Law Adviser regarding legal processes. Additionally, final approval of the loan is subject to foreign exchange clearance by the South African Reserve Bank.
In 2019, SANRAL had tried to secure a loan from the NDB which fell through due to the lack of a government guarantee. During this application National Treasury had raised concerns over the agency’s debt linked to the controversial tolling system.
Following the government’s decision to cancel the tolling system in 2024, SANRAL has since received a R16.5 billion assistance from government. Demana emphasized that the agency will still require further funding from local institutions, development finance entities, and international lenders to meet its long-term infrastructure goals.
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