The South African road agency losing R21 billion every month

• The Road Accident Fund (RAF) paid out R25 billion every month while receiving only R4 billion in return, resulting in a loss of R21 billion every month.
• The RAF is paying R21 billion more than it receives every month, and would not recover from this financial situation. The entity plans to reduce its dependence on the fuel levy, especially given the rise of electric vehicles.
• The RAF has announced plans to increase the tax by 33%, blaming reduced fuel sales for impacting its current funding model and plans to increase the current R2.25-per-litre levy on petrol and diesel sold in South Africa to R3 per litre.