How will the Road Accident Fund's financial demands affect the South African government?
Government faces massive financial burden due to Road Accident Fund deficit The Road Accident Fund's liabilities, estimated at R387.4 billion for 2025/26, place a significant financial strain on the South African government. To address the fund's deep deficit, the government is being forced to consider major policy changes, including studying new revenue sources like third-party vehicle insurance. Furthermore, the government is working to finalize amendments to the Road Accident Fund Act to make the scheme sustainable.
- Effect
- Strong negative
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How it reaches government
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The National Treasury set the annual fuel levy, which was previously raised by 7 cents to R2.25 a litre on April 1, 2026. Separately, the Road Accident Fund (RAF) requested increased funding from Parliament, proposing a fuel levy of R3 a litre. The RAF also disclosed that it spent R13 million on disciplinary hearings involving executive leadership and that nearly R30 million in taxpayer money was spent on salaries for at least 16 suspended executives.
The full event2independent outlets -
The Road Accident Fund presented its 2025/26 annual report, revealing liabilities estimated at R387.4 billion (about US$23 billion) and outstanding claims of R449 billion (about US$27 billion). This deep deficit and the fund's financial state weigh heavily on public finances, requiring the government to find new funding models.
1 report connects these two. Brind only summarizes; follow a link to read the reporting itself.
- riotimesonline.com Oct 7
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system or group of people governing an organized community, often a state
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The facts so far
As reported. Each one links to where it comes from.
- The Road Accident Fund's liabilities for 2025/26 were estimated at R387.4 billion (about US$23 billion).riotimesonline.com
- The fund currently owes R449 billion (about US$27 billion) in outstanding claims.riotimesonline.com
- The government expects gross government debt to stabilize at 78.9% of GDP in 2025/26.riotimesonline.com
- The current Road Accident Fund levy is R2.25 (about US$0.14) a litre.riotimesonline.com
Why it matters
The Road Accident Fund is a state fund responsible for compensating road users for losses from motor vehicle accidents in South Africa. Its massive deficit and high liabilities represent a significant contingent liability for the state, directly impacting the government's ability to manage its national finances and debt levels.
This financial pressure is forcing the government to move away from simple levy increases, as Deputy Transport Minister Mkhuleko Hlengwa favors a hybrid model. The government is actively studying new revenue sources, such as requiring foreign visitors to carry travel insurance, to find a sustainable solution for the fund.
What we don't know yet
- Will the government adopt a hybrid funding model or rely on increased levies?
- When will the amendments to the Road Accident Fund Act be tabled in Parliament?
Is this still moving?
- Reports
- 2
- Developments
- 2
- Repetition
- 0%
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Reporting
- riotimesonline.comOct 7
- timeslive.co.zaOct 10
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