Skip to main content

By invitation: Africa’s road funds are under pressure

Ali Ipinge is CEO of the Road Fund Administration (RFA) of Namibia and, since early 2021, presides over the 35-member African Roads Maintenance Funds Association (ARMFA). Ahead of the 18th IRF World Meeting & Exhibition which he will be keynoting, Ipinge highlighted developments in the quest for sustainable road maintenance funding in the African continent
November 8, 2021 Read time: 3 mins

 

The traditional sources of funding for road maintenance projects and programmes in Africa has been confined to fuel levies, vehicle license and registration fees, road tolls, weight-distance charges, abnormal load charges and weighbridge fines, as well as cross border/ports of entry charges. Grants and loans from development partners are also accumulated as contributory funding. In some member states, Government subvention is provided from the central fiscus from tax revenue.

In the late 1980s a paradigm shift swept across the African continent, leading to the transformation of Government departments responsible for Infrastructure, Public Works and Transport. These changed into semi-commercial and autonomous entities dedicated to funding the provision and preservation of road infrastructure. With the reforms, the establishment of dedicated road funds sought to secure adequate funds based on road user-pay principles. Over the years, however, the erosion of the revenue base has rendered the funding inadequate - leading to rapid deterioration of the road networks on the continent.

The sustainability of traditional sources of road user charges revenue, specifically the fuel levy, necessitates strategies to seek alternative and long-term funding solutions for road maintenance. This comes against the backdrop of declining fuel consumption due to the introduction of e-vehicles and cleaner, more fuel-efficient vehicles.

If these alternative funding strategies are not explored, road construction and maintenance will be severely compromised on the continent. With funding being insufficient to provide for road maintenance needs, ARMFA member states require innovative strategies to be investigated and implemented.

Innovative and alternative sources of road financing on the African continent, such as tolling and distance-based road user charges, have been investigated and are in part being implemented.

Extensive literature is available on tolling and its history, technology and application across Africa.  Zambia enacted the Toll Act of 2011 to provide for the establishment and operation of toll roads. Road tolling in Zambia today has progressed to the point where there are approximately 20 inland toll gates and an automated e-Toll payment system. The successful implementation of the Zambian toll model has seen increased revenue and enhanced efficiencies in the maintenance of its 67,671km road network.

IRF2It is argued that a road user charge such as fuel levy is discriminatory, in the sense that it favours the well-off, being able to afford fuel efficient vehicles and travel more kilometres. New funding advances should be geared towards charging road users for the amount of road use and not the fuel consumed. Such a model would then require the capturing of distance travelled, the quality of road traversed and the vehicle mass. Tracking technology fitted onto vehicles with identifiers, readers and onboard units, will allow for the transmission and processing of key data to enable efficient calculation of road use and ultimately the billing thereto.

The probable, most equitable and sustainable method is a road charge based on distance as it allows road users the choice and decision on the need for the trip, and usage of the road asset provided.

The Paris Accord has implored the nations of the world to reduce carbon emissions. The developed nations have responded to the call to aggressively manufacture and produce hybrid and electric vehicles. It is incumbent upon Africa to follow suit and position itself accordingly, in anticipation of technological advancement in generating revenue for roads.

For more information on companies in this article

Related Content

  • Road transport key to Africa's trade links
    February 17, 2012
    Road transport is the key to improving Africa's links within its own territory, and further afield as Patrick Smith reports. Development of road transportation is the key to the future of the African economy, and countries on the continent are making great strides. According to a report by a transport infrastructure expert at the New Partnership for Africa's Development (NEPAD), within the next 15 years the value of trade in Africa could reach US$250 billion if a $32 billion investment is made to integrate
  • New African infrastructure roadmap
    February 9, 2012
    An ambitious plan to boost transport infrastructure in Africa is being unveiled at the inaugural Africa Roads & Rail Infrastructure Summit 2010 is being held in Kigali, Rwanda from 22nd-23rd April. International transport specialists will focus on the region along with key decision makers from African governments, the World Bank and economic communities.
  • Crossing the Alps for five decades
    March 24, 2020
    Italy’s A22 Autostrada route is a key transport connection for Europe and also a model for efficient operational management
  • The IRF is committed to Africa’s Transport Agenda
    March 13, 2014
    Regional Congress to take place June 4-6 in Abuja, Nigeria The 17th IRF World Meeting & Exhibition created opportunities for stakeholder discussions around global as well as regional agendas. More than 50 participants representing heads of government agencies, development partners, academia, and contractors took part in an interactive roundtable discussion on the supply and provision of transport infrastructure on the African continent. Topics ranging from safety to the qualifications needed for th