The South African National Roads Agency SOC Limited has announced that it is injecting at least R50 billion into the country’s economy.
THE SOUTH African National Roads Agency SOC Limited (Sanral) has revealed plans to boost the country’s economy with an investment of at least R50 billion.
Currently, Sanral is assessing 96 tenders valued at R35 billion, and since the beginning of the 2024/25 financial year on April 1, 2024, it has already awarded 86 contracts worth R15 billion.
These tenders are spread across various regions:
- 34 tenders worth R16.5 billion
- 24 tenders worth R3.8 billion
- 12 tenders worth R2 billion
- 12 tenders worth R11.7 billion
- 14 tenders worth R839 million
Sanral’s CEO, Reginald Demana, highlighted the significance of this achievement, especially in light of the procurement challenges faced in the 2023/24 financial year.
“This achievement is a testament to Sanral’s commitment to economic recovery for the road construction sector and South Africa at large. It follows a significant setback to our procurement processes in 2023/24 when legal challenges to Sanral’s Preferential Procurement Policy (PPP) brought all tenders to a halt,” said Demana.
He further explained that the awarded contracts, valued at R15 billion, along with the tenders worth R35 billion currently under evaluation, are being adjudicated under the Interim PPP adopted in late 2023 after extensive consultations with stakeholders.
Demana noted that Sanral’s progress reflects improved operational stability, citing the appointment of a chief procurement officer on July 1, 2024, as a key development. He emphasised the agency’s determination to surpass the R51 billion worth of tenders awarded in the 2022/23 financial year, with an additional R1.8 billion worth of tenders to be advertised soon.
“Sanral’s objective is not only to ensure that we maintain the existing national road network and to build new road infrastructure to facilitate economic growth, but to use the state’s spending power to see even more impact; this not only in terms of improved infrastructure but also economic opportunities that transform the economy and change people’s lives,” he said.
With maintenance being critical to the national road network’s upkeep, new five-year Routine Road Maintenance (RRM) tenders are planned across the country, particularly for roads recently transferred to Sanral.
Sanral said it is making significant progress on several major construction projects across South Africa, with key developments including the R20 billion N2 Wild Coast Road project, the R1.2 billion R56 Matatiele improvement, and the R573 Moloto Road upgrades.
These projects are creating jobs, supporting local suppliers, and enhancing road infrastructure nationwide. Additionally, Sanral is advancing plans for the N2 Cape Town upgrade, the R52 Rustenburg-Koster road, and the Huguenot Tunnel upgrade, among others, all aimed at improving road safety, reducing congestion, and boosting economic opportunities across the country.
Recently, Sanral’s management team, led byDemana, inspected the N2WCR and N2/N3 projects, expressing satisfaction with the progress on these priority initiatives.
“Sanral has numerous multibillion-rand projects under way across the country which ensure that the construction industry is thriving, creating jobs and new opportunities for small, medium and micro enterprises (SMMEs),” said Demana. “Sanral will continue to use its mandate of developing, financing and maintaining the national road network to improve the lives of all South Africans, one kilometre at a time.”
