Government Mulls Annual Charge for South African Motorists to Fund Road Accident Fund

South African motorists could soon face a new annual charge added to their vehicle licence renewals as the government searches for ways to fund the struggling Road Accident Fund (RAF). Minister of Transport Barbara Creecy has confirmed that her department is considering a major overhaul of how the RAF is funded, with one option being a mandatory fee linked to vehicle registrations and licence disc renewals.

The RAF is currently financed through the Road Accident Fund Levy, which is added to every litre of petrol and diesel sold in South Africa. This system has worked for decades because motorists effectively contribute every time they fill up their tanks. However, the growing number of electric vehicles (EVs) on South African roads has created a challenge. Since EVs do not use petrol or diesel, their owners do not contribute to the fuel levy despite still using public roads and potentially benefiting from RAF cover.

According to Creecy, there is merit in considering a separate mandatory RAF fee attached to vehicle registration or annual licence disc renewals. But the proposal is not set to take effect immediately. The Department of Transport and the RAF have launched a structured review of the fund's financing framework, which is expected to be completed during the 2026/27 financial year.

As part of this review, the government is evaluating possible funding models to ensure that all road users contribute, regardless of the type of vehicle they drive. The review aims to identify a new funding model that is equitable, sustainable, and appropriate for South African conditions.

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Minister Barbara Creecy has been at the helm of the Department of Transport since her appointment by President Cyril Ramaphosa in 2019. Her tenure has been marked by efforts to address South Africa's struggling transportation sector, including the RAF. Creecy has expressed her commitment to ensuring that the RAF is sustainable and accessible to all road users.

A mandatory RAF fee linked to vehicle registration or annual licence disc renewals is still in the early stages of consideration. The proposal is part of the government's broader review of the RAF's financing framework, which is aimed at identifying a new funding model that is fair, sustainable, and meets the needs of all road users in South Africa.

The Department of Transport has launched a structured review of the RAF's financing framework, which is expected to be completed during the 2026/27 financial year. The review aims to evaluate possible funding models and identify a new funding model that is equitable, sustainable, and appropriate for South African conditions.

South African motorists will soon face the challenge of a new annual charge to fund the struggling Road Accident Fund. The proposal is under review, with Minister Barbara Creecy hinting at a mandatory fee linked to vehicle registrations and licence disc renewals.

If the proposal is implemented, the new charge will be added to the vehicle licence renewal fees that motorists pay annually. This means that all vehicle owners will contribute to the RAF, regardless of whether they drive petrol, diesel, or electric vehicles.

The South African government is considering a new way to fund the Road Accident Fund (RAF), which is facing financial challenges. A mandatory RAF fee linked to vehicle registration or annual licence disc renewals is one of the options being evaluated.

The RAF provides compensation to victims of road accidents and their families. With the growing number of electric vehicles on South African roads, the current funding model is no longer sustainable.

If the new proposal is implemented, it will mean that all vehicle owners will contribute to the RAF, regardless of the type of vehicle they drive. This will ensure that the fund remains sustainable and accessible to all road users in South Africa.