The South African National Roads Agency SOC Limited (SANRAL) has signed a significant R7 billion loan agreement with the New Development Bank (NDB) to fund major upgrades within its toll portfolio. The signing ceremony took place today in Sandton, Johannesburg, and was attended by senior officials from both entities.
The agreement was formally concluded by SANRAL Chief Executive Officer Reginald Demana and NDB Vice President and Chief Financial Officer Monale Ratsoma. SANRAL Board Member Mahesh Fakir hailed the funding as a critical boost for the agency, stating it will play a pivotal role in enabling SANRAL to fulfil its infrastructure development mandate.
“This loan agreement comes against the backdrop of the South African Government’s ambitious plan to invest nearly a trillion rand over the next three years in infrastructure development,” said Fakir. “We are proud to say that these funds will be used to upgrade our national road networks, widen carriageways, build extra lanes, and address various elements related to the road infrastructure.”
The NDB loan will support four key 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.
Together, these projects represent an investment of more than R12.7 billion. Over R3.8 billion will be allocated to SMMEs and targeted enterprises, and close to R1 billion will be directed towards labour-driven initiatives to promote inclusive economic participation. The projects are expected to create approximately 6,600 job opportunities in surrounding communities and deliver significant improvements in logistics, safety, and mobility along key national trade corridors.
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Demana stated that the loan will become effective once standard conditions precedent are met. He also confirmed that the balance of SANRAL’s borrowing limit, which stands at R16.5 billion as approved by National Treasury, will be utilised through additional fundraising in the domestic market via bonds, and syndicated or bilateral loans.
“The loan agreement allows SANRAL to continue investing in critical infrastructure that supports the economy and improves the quality of life for our people,” said Demana. “It is a much-needed injection that will assist in the realisation of several overdue national projects.”
NDB’s Monale Ratsoma reaffirmed the bank’s commitment to supporting South Africa’s development. “We are proud to finance this initiative in local currency, which reduces exposure to currency volatility and supports fiscal and corporate stability,” Ratsoma said. “This partnership demonstrates our shared vision to drive sustainable development and improve connectivity for all South Africans.”
The loan agreement aligns with broader government plans, as outlined by President Cyril Ramaphosa during his 2025 State of the Nation Address. The president confirmed that over R940 billion will be invested in infrastructure over the next three years, with R375 billion coming from state-owned enterprises. This includes revitalising roads and bridges, building dams, modernising ports and airports, and enhancing energy infrastructure.
President Ramaphosa further announced the launch of a new project preparation bid window aimed at accelerating investment readiness. Coupled with revised regulations for public-private partnerships, this initiative is expected to unlock increased private sector participation and funding.
The SANRAL-NDB loan agreement marks a crucial step in realising the government’s infrastructure vision and reinforces SANRAL’s role as a cornerstone in the development of South Africa’s national transport network.
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