Sanral secures R7bn NDB loan to upgrade SA freeways

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The funds will support a R12.7bn project to improve four key freeways and other strategic transport routes.

Sanral chief executive officer Reginald Demana confirmed that while the agreement has been concluded, access to the funds is pending final legal and regulatory steps, including a legal opinion from the state law adviser—expected within two weeks—and foreign-exchange approvals from the South African Reserve Bank.

Breakthrough infrastructure funding

Established by the Brics bloc in 2015, the NDB is mandated to support infrastructure and sustainable development projects across member states and emerging markets. This marks a major breakthrough for Sanral after its failed attempt to secure a similar loan in 2019, when National Treasury declined to back the deal due to unresolved debt linked to the now-defunct Gauteng e-tolling system.

With the e-toll issue now resolved, the government has approved a R16.5bn debt cap for Sanral, offering the agency more headroom for future borrowing. “We still need to go to the market to raise additional funding,” said Demana, adding that further capital will be sourced from local bond markets, banks, and development finance institutions.

The NDB is also reportedly open to rand-denominated funding, indicating further opportunities for collaboration.

This loan represents a strategic shift in Sanral’s financing model and reinforces South Africa’s growing alignment with Brics development frameworks amid pressing infrastructure needs.