Road Accident Fund (RAF) South Africa: Key News & Updates – July 2026

The Road Accident Fund (RAF) continues to dominate South African headlines in mid-2026, with major developments spanning funding reform, landmark court rulings, governance scrutiny, and a growing crisis of unpaid claims. Here is a comprehensive roundup of the most important RAF news as of 4 July 2026.

1. Is the RAF Fuel Levy Coming to an End? Minister Creecy Hints at Radical New Funding Model

In one of the most significant RAF developments of the year, Transport Minister Barbara Creecy has confirmed that the Department of Transport and the RAF have initiated a formal review of the fund’s current funding framework. The review, guided by a formal business case, is exploring possible alternative and supplementary funding options beyond the existing fuel levy model.

Currently, the RAF is funded primarily through a levy on every litre of petrol and diesel sold in South Africa — a model that collects between R45 and R48 billion annually. However, with the rise of electric vehicles and a government push for “road-to-rail” transport, this revenue stream is expected to decline significantly over time.

Deputy Minister of Transport Mkhuleko Hlengwa has proposed a hybrid funding model that would combine the existing fuel levy with a new third-party insurance component — a responsibility to be borne directly by drivers. He has also suggested an additional fee on licence disc renewals.

“It is elementary that you are going to have a reduction in your revenue generation if your sole model of income is the levy at the pumps.” — Deputy Minister Mkhuleko Hlengwa

Minister Creecy stated that the evaluation of proposed funding options is expected to be concluded during the 2026/27 financial year, after which the preferred model will be presented for further policy, legislative, and stakeholder processes.

The Democratic Alliance (DA) has strongly opposed any new financial burden on motorists, with DA Transport Spokesperson Chris Hunsinger calling for the RAF to be scrapped entirely and replaced with a more efficient and sustainable fund. The DA argues that the RAF’s crisis stems from “years of mismanagement, corruption, waste and poor governance” — not insufficient contributions from motorists.

2. RAF Technically Insolvent: R40 Billion Liability and a R2.32 Billion Deficit

The RAF’s financial position has deteriorated sharply. According to recent reports, the fund’s unpaid claims liability stands at approximately R40 billion, while it recorded a deficit of R2.32 billion during the 2024/25 financial year — a staggering 45.9% increase compared to the previous year.

The fund’s total liabilities now sit at almost triple its total assets, placing it in a state of technical insolvency. Despite this, the RAF continues to pay out substantial claims, with individual payouts ranging from over R2 million to nearly R10 million per claim.

DSC Attorneys partner Kirstie Haslam has urged claimants not to be deterred by the fund’s financial difficulties:

“This perception that the RAF has no money and therefore cannot compensate victims is simply not accurate, despite the system being under significant pressure. While claims can take time to finalise, valid claims continue to result in substantial compensation that can fundamentally change the lives of injured victims and their families.”

Haslam also warned claimants against accepting unfair out-of-court settlements, particularly given the RAF’s controversial 2020 decision to stop using panel attorneys in order to cut legal costs.

3. Landmark Supreme Court Ruling: RAF Must Compensate Undocumented Foreign Nationals

In a landmark April 2026 ruling, the Supreme Court of Appeal (SCA) confirmed that the RAF must compensate all road accident victims in South Africa — including undocumented foreign nationals.

The SCA dismissed the RAF’s appeal against a Gauteng High Court ruling that had struck down a RAF directive requiring foreign nationals to prove legal presence in South Africa at the time of injury. A full bench of three judges, led by Judge Norman Davis, found that the RAF Act makes no exclusion based on immigration status, and that the phrase “any person” in the Act includes all road accident victims regardless of nationality or documentation status.

“These accidents don’t discriminate in respect of the victims thereof between race, gender, age or between illegal foreigners and citizens of this country.” — Judge Norman Davis

The Transport Committee Chairperson welcomed the ruling, stating that “RAF funding is intended for victims of road accidents, a purpose for which no one should interfere based on nationality.”

4. Court Action Over 430+ Unpaid Finalised Claims

In June 2026, de Broglio Attorneys launched a formal court application against the RAF following the continued non-payment of more than 430 finalised claims — despite settlement agreements having been concluded or court orders already granted.

In some instances, claimants have waited more than two years for compensation that has already been legally agreed to or ordered by a court. The court application seeks an order compelling the RAF to provide full reasons and detailed explanations for its failure to effect payment within the prescribed 180-day timeframe.

Director Michael de Broglio highlighted the human cost of these delays:

“These are not numbers on a spreadsheet. They are individuals whose lives have already been fundamentally changed by serious road accidents. In some cases, claimants have reportedly died before receiving compensation that had already been finalised.”

One of the affected claimants is Rory Meintjies, a 29-year-old who suffered a spinal cord injury and permanent paralysis from the waist down in a road accident four years ago. Despite a court award having already been granted in his case, he and his family are still waiting for payment.

5. Governance Crisis: Parliamentary Scrutiny and Executive Suspensions

The RAF has been under intense parliamentary scrutiny throughout 2026. The Standing Committee on Public Accounts (Scopa) laid criminal charges against former RAF CEO Collins Letsoalo for failing to comply with a parliamentary summons — a development that has intensified concerns around oversight, financial management, and accountability within the fund.

Transport Minister Creecy previously dissolved the RAF board, citing ongoing governance and operational failures. An interim board has since been appointed, but it too faces scrutiny amid executive suspensions and ongoing reform plans.

Despite these challenges, the Portfolio Committee on Transport Chairperson Donald Selamolela expressed cautious optimism in February 2026:

“We are satisfied that indeed there is work happening to improve governance and stabilise the operation of RAF. The committee accepts that RAF is a challenged entity of government, besieged by historical factors that unnecessarily frustrated the work of the entity.”

6. RAF Settlement Drive and Direct Claims Strategy

In a bid to reduce its massive backlog, the RAF hosted a Settlement Drive at Ngwelezane Hospital in February 2026 — the second instalment of its settlement initiative. The RAF board reported that it had already made R3.3 billion in payouts to claimants through this drive.

Acting CEO Collins Letsoalo had previously introduced a new strategic plan focused on moving away from litigation towards direct claims management — a strategy aimed at reducing legal costs and speeding up payouts to accident victims.

What Does This Mean for RAF Claimants?

If you or a loved one has been injured in a road accident in South Africa, here are the key takeaways from the latest RAF news:

• You are still entitled to claim — despite the RAF’s financial difficulties, valid claims continue to be paid out.
• Do not accept low settlement offers — courts continue to award substantial compensation, and claimants should seek legal advice before accepting any offer.
• All persons qualify — the Supreme Court has confirmed that all road accident victims, regardless of nationality or documentation status, are entitled to claim.
• Delays are common but not final — if your finalised claim has not been paid, legal recourse is available, as demonstrated by the de Broglio Attorneys court application.
• Monitor funding changes — the proposed hybrid funding model could affect how the RAF is financed in the future, potentially impacting motorists’ costs.

Conclusion: A Fund at a Crossroads

The Road Accident Fund stands at a critical juncture in 2026. Technically insolvent, under parliamentary scrutiny, and facing a wave of legal challenges over unpaid claims, the RAF is simultaneously navigating landmark court rulings and a fundamental rethink of its funding model. The coming months will be decisive — both for the future sustainability of the fund and for the hundreds of thousands of South Africans who depend on it for compensation after life-altering road accidents.

Stay informed and consult a qualified RAF attorney if you have a pending or unpaid claim.

Sources: IOL Business, Daily Investor, Moneyweb, Africa24 TV, Parliament of South Africa — July 2026