South Africa: Road tolls stalemate and political implications

Electronic toll gate structure on Gauteng highway. PHOTO/Yuri Madonsela

South African unions and big business are united in opposition to proposed tolls to pay for road upgrades in a debate that raises troubling questions about the governing African National Congress’ (ANC) ability lead democratic South Africa through troubled economic waters.

The ANC government announced late last month that the start of tolls, already repeatedly delayed in the commercial hub of Johannesburg, would be postponed another month while it seeks other ways to pay back the billions of dollars borrowed to build the tolls system and upgrade highways in and around Johannesburg.

If a precedent is set that users should not pay for new or improved roads, or that the government will always step in, it could mean South Africa will have fewer options for raising money for future projects.

Copyright 2012 The Associated Press.