Road Accident Fund News February 2026: Budget Levy Increases and Supreme Court Ruling Shake Up RAF

Major Developments in South Africa’s Road Accident Fund – February 2026

February 2026 has been a pivotal month for South Africa’s Road Accident Fund (RAF), with significant developments that will impact both motorists and the healthcare sector. From Budget 2026 announcements to crucial Supreme Court rulings, here’s everything you need to know about the latest RAF news.

Budget 2026: RAF Levy Increases Despite System Criticisms

Finance Minister Enoch Godongwana’s Budget 2026 speech delivered on February 25, 2026, brought unwelcome news for South African motorists. The Road Accident Fund levy will increase by 7 cents per litre, bringing the total RAF levy to R2.25 per litre from April 1, 2026.

This increase is part of broader fuel levy adjustments that will see motorists paying an additional 21 cents per litre across all fuel taxes:

• General Fuel Levy: +9 cents per litre (petrol), +8 cents per litre (diesel)
• Carbon Fuel Levy: +5 cents per litre (petrol), +6 cents per litre (diesel)
• Road Accident Fund Levy: +7 cents per litre (both fuel types)

Industry Criticism: “Throwing Money at a Broken System”

The RAF levy increase has drawn sharp criticism from industry bodies and tax advocacy groups. Bobby Ramagwede, CEO of the Automobile Association, stated that “the prevailing inefficiencies of RAF won’t be remedied by ‘throwing more money’ at the problem.”

The Organisation Undoing Tax Abuse (OUTA) expressed particular concern about the continued increases. CEO Wayne Duvenage noted that the annual fuel levy for the RAF contributes over R45 billion per annum, which falls well below the long-term provisions for the fund at R387.4 billion, expected to increase to R426.2 billion by 2028/29.

Supreme Court of Appeal Dismisses RAF Appeal in Hospital Claims Case

In a significant legal development, the Supreme Court of Appeal (SCA) dismissed with costs an application by the Road Accident Fund to appeal a judgment regarding 181 court orders in favour of Sunshine Hospital in Benoni.

The Sunshine Hospital Case: A R300 Million Debt

The case highlights the RAF’s ongoing payment challenges:

• Sunshine Hospital was owed R300 million by the RAF for outstanding claims
• By October 2025, this debt had accumulated R21 million in interest
• The hospital issued 6,285 summonses against the RAF that the fund failed to pay
• The hospital was ultimately forced to close its doors due to the unpaid debt

Acting SCA Judge Boissie Mbha, with concurrence from SCA Judge Xola Petse and Acting SCA Judge Daniel Dlodlo, rejected the RAF’s contentions and described their application as “opportunistic.”

Court Orders Breakdown

The 181 court orders that the RAF refused to honour consisted of:

• 116 Magistrate’s Court orders
• 44 Regional Court orders
• 21 High Court orders

Importantly, Judge Mbha noted that “all 181 court orders were valid: not a single one was impugned on appeal or reviewed.”

Parliamentary Oversight and Ongoing Investigations

The Standing Committee on Public Accounts (SCOPA) continues its oversight of the RAF, holding hearings with the RAF interim board and the Transport Ministry. This follows a ten-week enquiry during which the committee received extensive briefings about the fund’s operations and challenges.

Judicial Misconduct Allegations

Adding to the RAF’s troubles, Free State High Court Judge Mpina Mathebula faces trial over alleged theft of RAF funds. Mathebula is accused of stealing funds that were paid into his law firm’s trust account by the Road Accident Fund, with the trial proceedings ongoing as of February 2026.

Impact on Healthcare Providers and Road Accident Victims

The RAF’s payment delays and disputes continue to have severe consequences:

• Hospital closures: Sunshine Hospital’s closure demonstrates the real-world impact of RAF non-payments
• Healthcare access: Reduced capacity for treating road accident victims
• Legal costs: Mounting legal expenses as healthcare providers pursue unpaid claims
• System inefficiency: Resources diverted from patient care to debt collection

Looking Ahead: Structural Reforms Needed

Despite the additional R1.5 billion per annum that the levy increase will generate, critics argue that fundamental structural reforms are needed rather than simply increasing funding for a “broken system.”

Key areas requiring attention include:

• Streamlining claims processing procedures
• Improving payment timelines to healthcare providers
• Addressing the growing liability gap
• Enhancing oversight and accountability measures
• Implementing technology solutions for better claims management

What This Means for South African Motorists

From April 1, 2026, motorists will face:

• Higher fuel costs due to increased levies
• Continued uncertainty about RAF service delivery
• Potential delays in claim processing and payments
• Questions about value for money from RAF contributions

Conclusion

February 2026 has highlighted the ongoing challenges facing South Africa’s Road Accident Fund. While the government seeks to address funding shortfalls through levy increases, the Supreme Court ruling and hospital closure demonstrate that systemic issues require more than additional funding.

The RAF’s ability to fulfill its mandate of compensating road accident victims remains under scrutiny, with stakeholders calling for comprehensive reforms rather than incremental funding increases. As the fund’s liabilities continue to grow faster than its income, the need for structural changes becomes increasingly urgent.

Stay informed about the latest Road Accident Fund developments and their impact on South African motorists and healthcare providers by following our regular updates on this critical issue.