Road Accident Fund (RAF) in Crisis: Funding Overhaul, Unpaid Claims & Key Developments – July 2026

The Road Accident Fund (RAF) continues to dominate South African headlines in mid-2026, with a wave of significant developments spanning a potential funding model overhaul, court action over unpaid claims, a landmark ruling on foreign nationals, and ongoing debates about the fund’s long-term sustainability. Here is a comprehensive roundup of the latest RAF news as of 15 July 2026.

1. Minister Creecy Hints at End of the RAF Fuel Levy

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

Currently, the RAF is funded primarily through a dedicated levy on every litre of petrol and diesel sold in South Africa. However, the rise of electric vehicles (EVs) — which do not contribute to the fuel levy — is threatening the long-term viability of this model.

In a written parliamentary reply, Minister Creecy stated:

“The Department of Transport, in collaboration with the Road Accident Fund (RAF), has initiated a structured review of the RAF funding framework, guided by a formal business case. It is anticipated that the evaluation of the proposed funding options will be concluded during the 2026/27 financial year, after which the preferred model will be presented for further policy, legislative, and stakeholder processes.”

The minister emphasised that any new model must be equitable, sustainable, and appropriate for the South African context, ensuring no unintended disparities across different categories of vehicle users.

The Democratic Alliance (DA) has pushed back against any changes that could increase costs for motorists, arguing that the RAF’s crisis stems from “years of mismanagement, corruption, waste and poor governance” — not insufficient contributions from road users.

2. New Vehicle Licence Fees on the Cards?

As part of the funding review, South Africans could face new vehicle licence fees as one of the options being explored to replace or supplement the fuel levy. This possibility has raised alarm among motorists already under financial pressure from rising fuel prices and inflation.

Emeritus Professor Hennie Klopper, a practising attorney and professor of private law at the University of Pretoria, warned that the RAF’s challenges go far deeper than its funding model:

“The problem is not as much getting money to pay for it, but stopping the bleeding.”

Professor Klopper highlighted that the RAF receives approximately 100,000 claims per year, with the average claim amounting to roughly R328,000. He also noted that the fund has had 10 chief executive officers since 2002, with each promising to turn the organisation around — yet the problems persist.

The fund’s outstanding liabilities are staggering. While figures of around R30 billion have previously been cited, Parliament’s Standing Committee on Public Accounts (SCOPA) has discussed estimates placing the total liability at approximately R500 billion.

3. Court Action Launched Over 430+ Unpaid Finalised Claims

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

Many claimants have waited more than two years for compensation that has already been legally agreed to or ordered by a court. In some tragic cases, claimants have reportedly died before receiving their compensation.

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 payment period.

Michael de Broglio, director of de Broglio Attorneys, said:

“These are not numbers on a spreadsheet. They are individuals whose lives have already been fundamentally changed by serious road accidents. Where compensation has been determined by agreement or court order, there is no ambiguity about what is owed. Delays of many months and, in some cases, years, raise serious concerns about accountability and the effective administration of justice for vulnerable road accident victims.”

The case has brought renewed scrutiny to the RAF’s governance and accountability, particularly following SCOPA’s decision to lay criminal charges against former RAF CEO Collins Letsoalo for failing to comply with a parliamentary summons.

4. Landmark Court Ruling: Foreign Nationals Entitled to RAF Claims

In April 2026, the Supreme Court of Appeal (SCA) ruled that foreign nationals are entitled to claim and receive benefits from the Road Accident Fund. The ruling upheld a High Court decision that the interpretation of “any person” in the RAF legislation does not exclude foreign nationals from claiming under the scheme.

The Chairperson of the Portfolio Committee on Transport, Mr Donald Selamolela, welcomed the ruling, stating:

“The RAF funding is intended for victims of road accidents, a purpose for which no one should interfere based on nationality. Failures elsewhere in the migration system should not be translated as meaning the RAF system is closed to foreign nationals.”

Mr Selamolela noted that the ruling highlights the urgent need to review and update RAF legislation, and suggested that South Africa could look at models used by Botswana and Namibia, where foreign nationals are required to take out short-term insurance cover before entering the country.

5. Signs of Recovery — But Reform Must Accelerate

Despite the many challenges, Parliament’s Portfolio Committee on Transport has expressed cautious optimism. In February 2026, Committee Chairperson Donald Selamolela stated that the RAF is showing “signs of recovery”, with improved governance and payment systems being put in place.

Deputy Minister of Transport Mr Mkhuleko Hlengwa told the committee that reforming the RAF remains a government priority, likening the process to “fixing an aeroplane while airborne.”

The committee has called on the department to speed up the review of RAF legislation to close all loopholes and ensure the fund can serve its core mandate: compensating road accident victims.

6. The Road Safety Imperative

Experts agree that no funding model can sustainably support the RAF without a serious commitment to improving road safety. South Africa’s road casualty rate significantly exceeds international norms, and the World Health Organisation rates South Africa’s road traffic law enforcement at just 30%.

Professor Klopper argued that government road safety efforts rely too heavily on roadblocks, while many of those injured or killed on South African roads are pedestrians. He called for a two-pronged approach: genuine road safety improvements and a sustainable, well-governed compensation system.

What This Means for South Africans

The RAF’s ongoing crisis has wide-ranging implications for all South Africans:

• Motorists may face new fees or levies as the government seeks alternative funding mechanisms.
• Road accident victims continue to face unacceptable delays in receiving compensation they are legally entitled to.
• Taxpayers are indirectly affected by the fund’s R500 billion liability overhang.
• Legal professionals and claimants must navigate an increasingly complex and contested claims environment.

The coming months will be critical as the Department of Transport concludes its funding review and presents its preferred model for public and legislative scrutiny. Whether the RAF can be reformed from within — or whether a fundamentally new system is required — remains one of South Africa’s most pressing policy questions.

Stay Informed About the Road Accident Fund

If you or a loved one has been involved in a road accident in South Africa, it is important to understand your rights under the RAF. Consult a qualified attorney to ensure your claim is properly lodged and followed up. Given the current delays and governance challenges, professional legal assistance is more important than ever.

Sources: IOL Business, Moneyweb, Eyewitness News (EWN), Parliament of South Africa, Africa24 TV — July 2026.