The South African National Roads Agency Limited (Sanral) has sealed a R7-billion loan agreement with the New Development Bank (NDB) to finance critical upgrades along some of the country’s busiest national toll routes.
The deal was officially signed on Tuesday in Sandton, Johannesburg, and marks a major milestone in South Africa’s ambitious infrastructure drive, with Sanral board member Mahesh Fakir describing the funding as “long overdue”.
Four flagship projects
“This loan agreement comes at a time when our government, under President Cyril Ramaphosa, has committed nearly a trillion rand over the next three years to national infrastructure development,” said Fakir.
“We are proud to say these funds will now help us widen carriageways, build extra lanes, and modernise key stretches of national roads.”
The loan will directly support four flagship projects:
• N3 Paradise Valley to Marianhill Toll Plaza;
• N3 Marianhill Toll Plaza to Key Ridge;
• N1 Zandkraal to Scottland; and
• N1 Scottland to Winburg South.
Combined, these projects are valued at over R12.7-billion.
More than R3.8-billion will be set aside for small, medium, and micro enterprises (SMMEs) and other targeted groups, while close to R1-billion will drive labour-intensive inclusion efforts.
Sanral estimates the projects will generate around 6 600 job opportunities for local communities along the corridors.
Reginald Demana, Sanral’s CEO, said the loan will enable the agency to pursue “massive investment in new infrastructure while also maintaining existing road networks”.
“This agreement allows us to continue paving the way to progress for both the economy and the public,” said Demana.
“It becomes effective once all standard conditions precedent are met. The remaining balance of our R16.5-billion borrowing limit, approved by National Treasury, will be raised through domestic bonds and bilateral or syndicated loans.”
Quality road infrastructure
NDB vice-president and chief financial officer Monale Ratsoma praised the partnership, noting that the R7-billion facility is rand-denominated to shield the fiscus from currency risks.
“We’re proud to finance this in local currency, which cushions against exchange rate volatility and protects corporate and state balance sheets,” said Ratsoma.
“This is about enabling commerce and improving lives through quality road infrastructure.”
Ramaphosa previously announced in his State of the Nation Address that the government intends to unlock R100-billion in infrastructure investment, with over R940-billion earmarked for infrastructure over the next three years — including R375-billion from state-owned enterprises.
“This funding wilrevitalise South Africa’s roads and bridges; build dams; modernise ports and airports;s, and power the economy,” Ramaphosa said.
The Sanral-NDB partnership stands as a prime example of how multilateral cooperation and local enterprise can co-drive national development.
