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You are here: Home / News / The Vital Role of Transportation in the South African Economy

The Vital Role of Transportation in the South African Economy

26 June 2025 by Guest

Republic of South Africa: The Parliament
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The Chairperson of the Select Committee on Public Infrastructure and the Minister in the Presidency, Mr Rikus Badenhorst, emphasised the vitality of the role of transportation in the South African economy when the Department of Transport appeared before the committee yesterday to brief it on the department’s strategic plan for the 2025-26 financial year.

Mr Badenhorst outlined the ambitious targets of the department for increasing rail freight and commuter services. He acknowledged the financial and structural challenges faced by the department, making more emphasis on the need for efficient and effective transport systems to stimulate economic growth.

The department's presentation, detailed the alignment of the strategic plan with the Medium-Term Development Plan. Key targets highlighted included enhancement of economic growth through private sector involvement, reduction of road fatalities by 50% by 2030, the improvement of freight movement, and infrastructure investment. The department told the committee about the necessity of increased investment in transport infrastructure to bolster economic growth and job creation.

The committee raised concerns regarding the Driving License Card Account (DLCA), particularly the backlog in card production stemming from machine issues and procurement irregularities. The projected budget for the upcoming financial year indicated a revenue expectation of R321 million against expenses of R379 million. The department shared its insights into the budget allocation, underscoring the importance of infrastructure development.

Committee members expressed concern regarding governance within public entities, the department's reliance on consultants, and the challenges of policy implementation amid fiscal constraints. The committee requested a detailed report on the Road Accident Fund (RAF) and the state of the entity’s governance.

Members of the committee highlighted the negative consequences of governance deficiencies on public entities and proposed the development of a taxi fare index to promote balance within the taxi industry. The regulation of scholar transport, and digital driver licenses were also discussed.

On digital drivers’ licences, the department confirmed that the current backlog stands at approximately 680,000 cards while efforts are underway to clear it within three months. The complexities of transitioning to a digital identification system were highlighted.

Mr Badenhorst reiterated the committee's commitment to oversight and accountability. He said the department serves as a catalyst for economic prosperity. He stressed the importance of collaboration of the department with other key role-players in the transport sector for further enhancement of the transportation system in the country.

Distributed by APO Group on behalf of Republic of South Africa: The Parliament.

The Chairperson of the Select Committee on Public Infrastructure and the Minister in the Presidency, Mr Rikus Badenhorst, emphasised the vitality of the role of transportation in the South African economy when the Department of Transport appeared before the committee yesterday to brief it on the department’s strategic plan for the 2025-26 financial year.

Mr Badenhorst outlined the ambitious targets of the department for increasing rail freight and commuter services. He acknowledged the financial and structural challenges faced by the department, making more emphasis on the need for efficient and effective transport systems to stimulate economic growth.

The department’s presentation, detailed the alignment of the strategic plan with the Medium-Term Development Plan. Key targets highlighted included enhancement of economic growth through private sector involvement, reduction of road fatalities by 50% by 2030, the improvement of freight movement, and infrastructure investment. The department told the committee about the necessity of increased investment in transport infrastructure to bolster economic growth and job creation.

The committee raised concerns regarding the Driving License Card Account (DLCA), particularly the backlog in card production stemming from machine issues and procurement irregularities. The projected budget for the upcoming financial year indicated a revenue expectation of R321 million against expenses of R379 million. The department shared its insights into the budget allocation, underscoring the importance of infrastructure development.

Committee members expressed concern regarding governance within public entities, the department’s reliance on consultants, and the challenges of policy implementation amid fiscal constraints. The committee requested a detailed report on the Road Accident Fund (RAF) and the state of the entity’s governance.

Members of the committee highlighted the negative consequences of governance deficiencies on public entities and proposed the development of a taxi fare index to promote balance within the taxi industry. The regulation of scholar transport, and digital driver licenses were also discussed.

On digital drivers’ licences, the department confirmed that the current backlog stands at approximately 680,000 cards while efforts are underway to clear it within three months. The complexities of transitioning to a digital identification system were highlighted.

Mr Badenhorst reiterated the committee’s commitment to oversight and accountability. He said the department serves as a catalyst for economic prosperity. He stressed the importance of collaboration of the department with other key role-players in the transport sector for further enhancement of the transportation system in the country.

Distributed by APO Group on behalf of Republic of South Africa: The Parliament.

 

Per Kind Favour of APO

Africa Fact: Africans cultivated crops 12,000 years ago, the first known advances in agriculture. Professor Fred Wendorf discovered that people in Egypt’s Western Desert cultivated crops of barley, capers, chick-peas, dates, legumes, lentils and wheat. Their ancient tools were also recovered. There were grindstones, milling stones, cutting blades, hide scrapers, engraving burins, and mortars and pestles.

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  1. Sw33per

    26 June 2025 at 5:23 pm

    Fun South African Fact: The first successful heart transplant was in a Cape Town hospital

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    26 June 2025 at 5:18 pm

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