A presentation by Mr Stefan Neubrech, principal of Infrastructure Advisory at Aurecon, South Africa. Delivered during a Transport Forum Special Interest Group event in Pretoria on 6 December 2018.

1. Road Funds and road user
charging in SADC
Transport forum
6 December 2018

2. 2
• Lack of road maintenance has been major contributory factor in
deterioration of SADC road network
• Adequate funding of road maintenance critically important for
safeguarding investments in road Infrastructure
• Appropriate system of cost recovery through levying of a RUC generally
viewed as an efficient instrument for providing a source of funding for
road maintenance
IMPORTANCE OF FUNDING FOR ROAD
MAINTENANCE

3. 3
• Article 4.2-Road Infrastructure Policy: “In order to attain road
infrastructure objectives, Member States agree to develop a harmonized
regional road infrastructure policy…”
• Article 4.5.2-Funding Sources : “In order to promote harmonized
national RUC systems, Members States shall develop a common
understanding in respect of the types of road user charging and the
levels of such charges and introduce in their respective territories on
basis of regular exchange of information”
OVERVIEW OF SADC PROTOCOL

4. 4
The SADC Protocol on transport, communications and meteorology:
Scope and
objectives of
protocol
• The protocol sets
the platform for how
the roads subsector
should be managed
in each of the
member states
• Member States to
provide efficient,
cost-effective and
fully integrated
infrastructure and
operations
Strategic goals
• Integration of
transport
• Restructure state
enterprises and
public utilities which
are financially
independent and
commercially viable
• Optimal utilisation of
financial, human and
other resources
Road infrastructure
objectives
• Member states
undertake to ensure
and sustain the
development of an
adequate road
network in support
of socio-economic
growth by providing,
maintaining and
improving all roads.

5. 5
The SADC Protocol on transport, communications and meteorology:
Road infrastructure
policy
• Monitoring the
adequacy and
quality of road
infrastructure
• Coordinate to
benefit the region
• Strategies to reduce
cost of construction
and maintenance
National roads
authorities
• Member states
undertake to
establish
autonomous and
accountable national
roads authorities,
with both
representatives from
the public and
private sectors to
govern these
authorities and with
clearly defined
responsibilities
Road funding
• The protocol
propagates the need
for adequate,
sustainable and
appropriate sources
of funding, including
general revenue,
road user charges
and other funds

6. 6
Typical functions
Minister responsible for
roads
•Determines and publishes the country’s
roads policy
•Provides in addition policy guidelines to
the road agency and the road fund
•Appoints the boards who are
responsible for governing the road
agency and the road fund and agency
•The general oversight to ensure
functioning of road agency and the road
fund in accordance with relevant acts of
parliament acts and policy guidelines.
Roads agency
•Provision of roads
•Network planning
•Road demand forecasting
•Co-ordinate road planning activities with
other road authorities
•Construct, upgrade, rehabilitate and
maintain roads under its jurisdiction
•Procurement and outsourcing of road
works
•Perform project and contract
management and quality control
•Set technical standards
•Operate and manage toll roads or
private toll operators
•Build and operate weigh-bridges and
undertake overload control activities
•Recommend classification of roads to
minister
•Road information and management
systems
•Technical facilitation
•Research
•Phasing out force account operations.
Roads fund
•Approve financial plan of applying the
road fund
•Determine road user charges - subject
to ministerial approval
•Declare toll roads and authorise the
collection of tolls by the road agency
•Adopt formulae for unbiased allocation
and distribution of funds
•Allocate and disburse funds
•Review fuel levies
•Verify that the road fund is financially
sound
•Advise minister on new or additional
revenue sources
•Collect user charges or delegate this
function
•Ensure financial discipline
•Ensure financial accountability
•Day-to-day management of the road
fund

7. 7
Road Funds and
Agencies in SADC

8. 8
Road Network Comparison
ANGOLA
BOTSWANA
DRC
LESOTHO
MALAWI
MOZAMBIQUE
NAMIBIA
SOUTH AFRICA
SWAZILAND
TANZANIA
ZAMBIA
ZIMBABWE
SADC
0,001
0,01
0,1
1
10
100
0,00001 0,0001 0,001 0,01 0,1 1
PavedRoadNetwork(km)/Area(km2)
Paved Road Network (km)/Total Population
Paved Road Network/Population vs Road Network /Area

9. 9
Road Network Comparison (excluding SA)
ANGOLA
BOTSWANA
DRC
LESOTHO
MALAWI
MOZAMBIQUE
NAMIBIA
SWAZILAND
TANZANIA
ZAMBIA
ZIMBABWE
SADC
0,01
0,1
1
0,0001 0,001 0,01 0,1 1
RoadNetwork(km)/Area(km2)
Road Network (km)/Total Population
Road Network/Population vs Road Network /Area

10. 10
Funding sources
Southern African Development Community (SADC)
Angola Central government funding
Botswana Central government funding
DRC Central government funding
Lesotho Levy on petrol and diesel
Road Toll* Gate Fees
Vehicle License Fees
Madagascar Central government funding
Malawi Parliament appropriations
Roads Fund Fuel Levy
International Transit Fees
A percentage of road user charges including taxes, tariffs and tolls
Loans, grants and donations
Note: revenues have thus far been derived only from Fuel Levy and International Transit Fees
Mauritius Central government funding
Mozambique Fuel charges,
Transit charges
Bridge tolls
Note: The central government does not contribute to road maintenance funding
Namibia Fuel Levy
Vehicle registration and licensing fees
Cross border charges
Mass distance charges(local and foreign)
Abnormal load fees
Note: * In these cases tolls refer to transit related charges or cross border charges

11. 11
Road User Charging Instruments
Southern African Development Community (SADC)
Seychelles Central government funding
South Africa Tolling on specific roads. Central government funding
Swaziland Central government funding
Tanzania Fuel levy
Overloading Fees
Abnormal load permits
Transit Charges
Heavy vehicle license fees
Note: The heavy vehicle license fees collected by Revenue Authority do however not accrue to the RFB
Note: * In these cases tolls refer to transit related charges or cross border charges

12. 12
Road User Charging Instruments
Southern African Development Community (SADC)
Zambia Moneys appropriated by Parliament
Fuel levy
License fees,
Vehicle registration fees
International transit fees
Weigh bridge charges & fines for Vehicle overloading offences
Road user levies including tariffs, Taxes and tolls as may be determined by the Minister
Loans, grants or donation.
Zimbabwe Appropriations from parliament
Grants
Vehicle license fees
Fuel levy
Toll roads
Transit fees
Abnormal Load Fees
Overload Fees
Note: * In these cases tolls refer to transit related charges or cross border charges

13. 13
Utilisation of Road Funds
Country Maintenance
Development
Rehabilitation
New
Construction
Namibia ✓ ✓ ✓
Lesotho ✓ - -
Zimbabwe ✓ ✓ -
Tanzania ✓ Only 10%
Malawi ✓ ✓ ✓
Zambia ✓ ✓ ✓

14. 14
TYPES OF CHARGES PAYABLE AT
BORDER POSTS
Transit Charge
Levied
Ang Bot DRC Les Mal Moz Nam RSA Swz Tan Zam Zim
Fixed Fee per Entry X X X X X X X X
Distance based X X X X
Foreign registered +
domestic vehicles
X
No Charge X

15. 15
▪ Clear framework created by SADC Protocol
▪ Implementation differs greatly between member countries
▪ Road Funds are essentially Road Maintenance Funds
▪ Road Funds ensure ring-fenced funding
▪ Road Funds face challenges in terms of their mandate
SUMMARY