A Toll Order

Botswana may already be collecting enough money from road users to maintain its roads, yet the government is contemplating toll gates to supplement road funding. Critics argue the problem may not be a lack of revenue, but weaknesses in the management of existing road levies. The Road Levy Collections Fund, a fuel-based user-pay system introduced in 2001, is estimated to generate roughly P1.4 billion annually, based on a levy of P1.10 per litre on about 1.3 billion litres of petrol and diesel consumed in Botswana. On paper, this revenue should cover the maintenance and rehabilitation of the country’s road infrastructure. Lack of transparency However, Auditor-General reports and economists indicate that a significant portion of the funds remain unspent or are being spent inefficiently, prompting a debate over whether Botswana needs a new toll system or simply better management of the revenue it already collects. Lack of transparency in these funds, which fall under special funds, is another concern, as it makes it difficult to track how the money is used. “There is a problem with the management of existing road financing resources, and there is limited transparency regarding the level of funding in the Road Levy Fund, its management and use,” Keith Jefferis, an economist, has said. Public information about the fund’s operations is limited. Historical data appears in the Annual Statement of Accounts compiled by the Auditor-General, but these reports are typically published several years after the financial year in question. The figures that are available, according to Jefferis, nevertheless indicate that substantial resources have accumulated in the fund, which has not been used for road maintenance as intended. The diversion of funds from their intended purposes has been a recurring issue in Botswana, with resources from other coffers previously channelled to entities such as the National Petroleum Fund, which was reportedly emptied through corruption. While the Road Levy Fund is estimated to now raise approximately P1.4 billion a year, there is no up-to-date information on how much of this is actually spent on road maintenance. “For 2021-22, the Road Levy Fund had an opening balance of P414 million and revenue of P1,084 million, giving total available resources of P1,498 million. Of this, less than half (P743 million) was used, and the Fund closed the year with a balance of P755 million,” Jefferis elaborated. Inefficiency Audits also illustrate a recurring pattern in road projects financed through the Fund: projects receiving substantial payments but failing to reach completion within scheduled timelines. In 2021, the Auditor General reported that the Nokaneng–Gumare Road overlay project, valued at P53.5 million, was only 49 percent complete and already 10 months behind schedule by July 2021 after equipment breakdowns and prolonged inactivity by the contractor. Similarly, the Tutume–Maitengwe road project, awarded for P46.5 million, stalled at 49 percent completion after the contractor failed to perform according to contract terms, prompting authorities to recall the performance bond and triggering a legal dispute. Road Levy Limitations The current road infrastructure funding system shows both efficiency and limitations. Fuel levies are easy to administer and inexpensive to collect. By charging petrol and diesel, the system follows a basic “user pays” principle: those who drive more generally consume more fuel. However, Douglas Rasbash, Scholar and Researcher, notes that while the P1.4 billion from the Road Levy Fund may seem substantial, the scale of Botswana’s road network exposes its limits. The country has about 30,000 km of roads, including 10,000 km of paved and 20,000 km of unpaved roads. The Fund is primarily earmarked for state roads, 7000 km of paved and 3,000 km of unpaved roads, totaling 10,000 km. The remaining 20,000 km, mostly under local government responsibility, receives far less funding. Roughly two-thirds of Botswana’s road network sits outside the Fund’s mandate, forcing local authorities to maintain a large network with limited resources. “This structural gap partly explains the uneven quality of rural roads and the persistent maintenance backlog in many districts,” he said Enter Toll Gate Amid these challenges, the government is exploring tolling as part of a long-term revenue strategy. Tolling is a form of direct user charging, where drivers pay to use specific roads, typically through toll plazas or electronic systems. Plans are underway to toll the 640 km A1 corridor, Botswana’s main north-south highway and the Minister of Transport and Infrastructure Noah Salalakae confirmed that a feasibility study is expected to conclude before the end of the 2026/27 financial year. Tolling has clear advantages. Rather than distributing costs broadly across all fuel users, toll systems impose direct charges on vehicles travelling along specific corridors. Revenues are typically used either to repay loans taken to build major highways or to fund ongoing maintenance of heavily trafficked routes. Many countries have successfully used toll roads to fund major highways. However, Rasbash notes, toll gates also have limitations: they are expensive to operate, can cause traffic delays, and sometimes divert traffic onto secondary roads. “Existing funding mechanisms are efficient and cheap to collect. Establishing a tolling network would be expensive to build and operate,” Jefferis adds. Traffic Density Question In countries where tolling has been implemented successfully, traffic density is a crucial determinant of financial viability. The economics of toll infrastructure depend on high and consistent traffic flows capable of generating sufficient revenue to cover operating costs, maintenance, and, where applicable, debt servicing. The World Bank and other transport finance institutions generally consider traffic volumes between 10,000 and 15,000 vehicles per day (vpd) as the standard threshold for a toll road to be bankable or financially self-sustaining without external subsidies. Botswana’s relatively low population density suggests that only a few corridors generate sufficient traffic volumes to make tolling financially viable. “Major routes such as the A1 corridor or international transit routes like Kazungula may support tolling, but many rural roads would not,” Rasbash said. Jefferis adds that publicly available data on traffic volumes is limited, making it difficult to predict whether tolls would generate meaningful revenue at tolerable fees, given the long-distance roads that traverse sparsely populated areas. “However, detailed information and analysis regarding traffic volumes, collection costs, and motorists’ willingness to pay may show that tolling of certain busier routes could be feasible,” he noted. Collections costs Even where traffic levels are adequate, tolling introduces additional costs that do not arise in fuel-levy systems. Toll roads require physical infrastructure such as plazas, electronic payment systems, traffic monitoring equipment, enforcement mechanisms, and staffing. These operational requirements mean that a significant share of toll revenue is often absorbed by collection costs. “It is likely that a significant portion of toll revenues would simply be spent on the cost of collecting them,” Jeffries said. Fuel systems are weakening Rasbash argues that Botswana should also consider alternatives beyond traditional toll booths. Fuel levy systems are weakening globally as vehicles become more fuel-efficient and electric vehicles enter the market. Fuel consumption declines, but road maintenance needs remain constant. What other countries are doing “For this reason, many countries are now exploring distance-based road user charging, often referred to as satellite tolling,” he said. Satellite tolling uses GNSS technology and on-board units to measure distance travelled, with charges calculated based on vehicle type, road class, and location. Heavy trucks that cause more road damage can be charged higher rates, while charges vary between highways and local roads. Countries including Germany, Singapore, the Czech Republic, and New Zealand already operate versions of this system. There is also a regional dimension. Southern Africa has one of the most integrated road freight systems in Africa, but road charging remains fragmented across countries, with differing tolls and levies. “A harmonised system of road pricing across SADC could improve efficiency, transparency, and revenue collection,” Rasbash said. Satellite-based distance charging could provide a platform for this, enabling freight vehicles to be charged consistently across borders while reducing administrative complexity. SA's dual model South Africa’s national road network is managed by SANRAL, which operates a dual model: about 13 percent of roads are toll-funded while 87 percent are tax-funded. This allows high-traffic corridors to be maintained at world-class standards while relieving the national budget. However, SANRAL has faced challenges, including public resistance to Gauteng’s e-tolls, leading to massive debt write-offs. Toll revenue remains critical for high-traffic routes, with SANRAL collecting R4.9 billion in toll revenue for 2024 -25. Botswana Bus Operators Association Weighs In Locally, stakeholders are cautious but open to tolling if revenue is properly ring-fenced. Tirafalo Mponang, chairperson of the Botswana Bus Operators Association, stresses that tolls should be dedicated solely to road infrastructure and not diverted to unrelated government spending. He suggested that toll revenue should ideally be used to maintain the specific highways from which it is collected. For instance, funds generated from the A1 corridor should be directed towards maintaining that route rather than being diverted to other roads. He highlighted deteriorating sections of the A1, where poor maintenance has increased operational costs through frequent vehicle repairs. Impact on Transport Fares However, the association cautioned on the economic trade-off; toll fees would ultimately become part of operators’ running costs and would inevitably have implications for passenger fares. “If they are introduced, it will trigger a call from our side for a review of transport fares,” he said. Balancing Act In the short term, the Rasbash said the Road Levy Fund remains the backbone of road financing, but governance, transparency, and allocation efficiency can be strengthened. In the medium term, targeted tolling on high-traffic freight corridors could supplement funding. Over the longer term, Botswana could gradually transition to satellite-based road user charging, aligning its road pricing system with emerging international practice and potentially positioning the country as a regional hub for modern road pricing systems within SADC. “Ultimately, sustainable road infrastructure funding must balance financial sustainability, economic efficiency, and equitable access for all road users,” he said. Botswana currently want to position itself as a transit hub, with major road projects being planned.

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A Toll Order

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