There are of course a number of reasons behind South Africa’s growing competitiveness amongst global markets in the last decade or more, however one that stands out in particular is the country’s modern transportation sector. South Africa’s roads, railways and ports are already regarded as a crucial engine for economic growth and social development, and stand to develop further still through the government’s stated intent to invest billions of Rand in the years to come.
Measuring some 747,000 kilometres South Africa’s road network is the largest found anywhere on the continent, with the drive from Musina on the country’s northern border to Cape Town in the south representing a 2,000 kilometre journey alone.
While South Africa’s Department of Transport is responsible for overall policy, road building and maintenance falls under the remit of the South African National Roads Agency Limited (SANRAL), as well as nine provinces and local governments.
SANRAL was established as an independent statutory company, operating along commercial lines, through an Act of Parliament in April 1998. The purpose of the company is to maintain and develop South Africa’s expanding national road network and to manage assets with a depreciated replacement value of 238 billion Rand, excluding land.
Operating under the terms of its founding legislation, The South African National Roads Agency Limited and National Roads Act (Act No. 7, 1998), SANRAL is governed by a board of eight people, six of whom are appointed by the Minister of Transport; the Chief Executive Officer, who is appointed by the Board; and a representative of the Minister of Finance.
SANRAL has proactively sought alternative sources of finance for road infrastructure and opportunities to reduce dependence on tax-based revenues. It has done so be harnessing the core skills and experience in road development and management of a highly motivated, professional and passionate team of people.
SANRAL’s principal tasks are to strategically plan, design, construct, operate, rehabilitate and maintain South Africa’s national roads in order to mobilise the country’s economy, generate revenues from the development and management of its assets, and undertake research and development to enhance the quality of life of all South African citizens.
Further to this, the agency exists to advise the Minister of Transport on matters relating to South Africa’s roads, and finance, plan, construct, provide, operate and maintain roads in neighbouring countries upon request from the Minister of Transport and in agreement with the respective countries.
These tasks are in line with the strategic objectives of SANRAL, as defined in its strategic vision. These include the management of a national road network ensuring best value for money, to continuously improve the efficiency of business practices, to maintain market confidence, to carry out the government’s targeted programmes to better the life of all citizens, and to work in co-operative partnership with road users, transport providers, relevant authorities and the private sector.
The agency has two primary sources of income that help fund its activities. Non-toll roads are funded from allocations made by South Africa’s National Treasury, while toll roads are funded from borrowings on the capital and money markets – bonds issued on the Bond Exchange of South Africa (BESA) in the name of the South African National Roads Agency Limited, or through the concession of roads to private sector consortia. SANRAL actually introduced and consolidated the concept of Public Private Partnerships in South Africa, a move that culminated in the internationally acclaimed Maputo Development Corridor.
In meeting the objectives set by the government, SANRAL leverages its procurement process to empower people, strengthening the capacity of individuals and communities to enable them to better the course of their lives. This form of economic empowerment is critical to meeting the Millennium Development Goals as set out by the United Nations in 2000.
Furthermore, SANRAL is committed to eradicating poverty through the creation of opportunities for the engagement in productive activities by poor people, especially those residing in rural areas. This takes the form of targeted procurement of works and services, training people to become economically active and the promotion of small, medium and micro enterprises (SMMEs).
This particular strategy enhances the provision of basic services, builds capacity, advances gender equity, acts as a catalyst for development in other growth areas, creates employment, and develops small and medium enterprises which alleviates poverty and improves the status of women. This brings women into the mainstream of the economy, which is particularly important in respect to unemployed rural women who are the most disadvantaged sector of our society.
Since it was established, SANRAL has been an active participant in communities throughout South Africa. The national road network itself makes a vital contribution towards security, safety, economic growth and social development, while also influencing both the cost and flexibility of the country’s economy, and the business and recreational opportunities of South Africa’s citizens.
Written by Will Daynes, research by Abi Abagun
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