Minister of Transport Barbara Creecy has revealed that the Department of Transport, together with the Road Accident Fund (RAF), has begun a formal review
Image: Supplied / Department of Transport
Minister of Transport Barbara Creecy has revealed that the department , together with the Road Accident Fund (RAF), has begun a formal review of the fund’s funding framework as the government looks at possible changes to how it is financed.
The fund is currently being funded mainly through a levy on every litre of petrol and diesel sold in South Africa, which contributes to payouts for road accident victims.
In a written parliamentary reply, Creecy confirmed that the Department of Transport and the RAF have initiated a structured review of the current funding model, including possible alternative and supplementary funding options.
She said the review is being guided by a formal business case and is still in its early stages, with no final funding model yet decided.
"The Department of Transport, in collaboration with the Road Accident Fund (RAF), has initiated a structured review of the RAF funding framework, guided by a formal business case. Once this process is completed, it will be communicated publicly"
"It is anticipated that the evaluation of the above-mentioned proposed funding options will be concluded during the 2026/27 financial year, after which the preferred model will be presented for further policy, legislative, and stakeholder processes".
She added that any proposed model must be designed to ensure it is equitable, sustainable, and appropriate for the South African context.
"As part of the research and assessment, the proposed model must be designed to ensure it is equitable, sustainable and appropriate for the South African context, such that there are no unintended disparities across different categories of vehicle users".
The Democratic Alliance (DA) has also previously criticised any move that could result in additional costs for motorists, saying South Africans are already under financial pressure from rising fuel prices and inflation.
The party argues that the Road Accident Fund’s challenges are not due to insufficient contributions from motorists, but rather issues of mismanagement and inefficiency within the system.
"The RAF is not in crisis because motorists are not paying enough. The RAF is in crisis because years of mismanagement, corruption, waste and poor governance have left it financially crippled. South Africans should not be forced to foot the bill for government’s failures".
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