Road Accident Fund (RAF) South Africa: Key Updates, Crisis & Reforms – July 2026

Introduction

South Africa’s Road Accident Fund (RAF) continues to dominate headlines in mid-2026, with a perfect storm of financial instability, landmark court rulings, governance scandals, and sweeping funding reform proposals threatening to reshape the institution entirely. From a potential end to the fuel levy model to criminal charges against a former CEO, here is a comprehensive roundup of the most important RAF news and developments as of July 2026.

1. Minister Creecy Hints at Radical New RAF Funding Model

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

The current system — funded through a levy on every litre of petrol and diesel sold in South Africa — is under increasing pressure as the rise of electric vehicles (EVs) reduces fuel consumption and, consequently, RAF revenue. Creecy stated that the evaluation of proposed funding options is expected to be concluded during the 2026/27 financial year, after which a preferred model will be presented for further policy, legislative, and stakeholder processes.

Any new model, she emphasised, 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 criticised any move that could result in additional costs for motorists, arguing: “The RAF is not in crisis because motorists are not paying enough. The RAF is in crisis because years of mismanagement, corruption, waste and poor governance have left it financially crippled.”

2. New Vehicle Licence Fees on the Cards for South African Motorists

Linked to the funding review, South African motorists could soon face additional fees when renewing their vehicle licence discs. The Department of Transport is researching a vehicle owner contributory scheme to supplement RAF funding — a proposal that has sparked significant public debate.

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 funding alone. He pointed to South Africa’s alarmingly high road casualty rate, which exceeds international norms by a significant margin.

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

With the RAF receiving approximately 100,000 claims per year at an average value of R328,000 per claim, Klopper described the current system as fundamentally unsustainable. He also warned that returning to a compulsory motor insurance model — South Africa’s pre-1986 system — could cost individual motorists between R5,000 and R10,000 per year in premiums.

3. RAF’s Staggering R500 Billion Liability

The scale of the RAF’s financial obligations is difficult to overstate. While figures of around R30 billion have previously been cited in public discourse, Parliament’s Standing Committee on Public Accounts (SCOPA) has discussed estimates placing the RAF’s total outstanding liabilities at approximately R500 billion. Between 300,000 and 400,000 claims are currently outstanding.

Professor Klopper noted that the RAF has had 10 chief executive officers since 2002, with each promising to turn the organisation around — yet the financial situation has continued to deteriorate. He described the government’s neglect of the RAF as “scandalous.”

Experts warn that introducing a completely new compensation model would create additional financial challenges, as any replacement scheme would likely need to operate alongside the current system for a transitional period, requiring significant parallel funding.

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 upon 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.

Among the affected claimants is Rory Meintjies, a 29-year-old who was left permanently paralysed from the waist down after a devastating road accident four years ago. Despite a court award having been granted in his case, he and his family are still waiting for payment. Another claimant, Sanet du Toit, a Gauteng business owner who nearly died in a head-on collision, has been forced to rely on overdraft facilities of around R500,000 to keep her business afloat while awaiting her RAF payout.

“Once a matter is settled or a court order is granted, there is a legitimate expectation that payment will follow within a reasonable and defined period. Continued delays undermine that expectation and prolong hardship for people who should already have received their compensation.” — Michael de Broglio, de Broglio Attorneys

5. SCOPA Lays Criminal Charges Against Former RAF CEO Collins Letsoalo

In a landmark accountability move, Parliament’s Standing Committee on Public Accounts (SCOPA) voted to lay criminal charges against former RAF CEO Collins Letsoalo for failing to comply with a parliamentary summons. Letsoalo had been summoned to answer questions about his management decisions on 25 and 26 November 2025, but failed to appear on the first day. His legal team instead issued a formal demand to the SCOPA chairperson to “cease and desist” from what they called an “unlawful oversight inquiry.”

The charges have intensified scrutiny of the RAF’s governance and accountability, and have raised broader concerns about oversight, financial management, and the consequences of non-compliance within the institution.

6. Supreme Court Ruling Opens Door for Undocumented Foreign Nationals to Claim — R390 Million Liability

The RAF faces an additional R390 million in potential liability following a Supreme Court of Appeal (SCA) ruling that found the RAF must compensate all road accident victims, including undocumented foreign nationals. The court found that “any person” in the RAF Act includes undocumented foreigners, striking down a RAF directive that required foreign nationals to prove legal presence in South Africa at the time of injury.

Minister Creecy confirmed that approximately R390 million in claims previously classified as non-payable could now become payable following the judgment. The RAF Board is still taking legal advice on whether to seek leave to appeal the ruling at the Constitutional Court.

The ruling has sparked political debate, with the African Transformation Movement (ATM) calling for RAF payouts to be limited to South African citizens only, arguing that foreign nationals should rely on travel insurance or their home countries for compensation.

7. RAF1 Claim Form Declared Unlawful — 600,000 Rejected Claims Could Be Resubmitted

In a major legal setback for the RAF, the Supreme Court of Appeal upheld a Gauteng High Court ruling declaring the RAF’s controversial RAF1 claim form unlawful, unconstitutional, and invalid. The form, introduced in 2022, imposed stricter documentation requirements on claimants that the courts found exceeded the RAF’s statutory and constitutional authority.

As a result, the RAF has been ordered to revert to the older 2008 claim form, and claimants whose submissions were previously rejected due to the unlawful form have been given until 30 September 2026 to resubmit their claims. It is estimated that up to 600,000 claims were rejected as a result of the unlawful form — a potential financial headache running into billions of rands for the already cash-strapped fund.

SCOPA’s draft RAF oversight inquiry report warned that the impact could have “severe financial consequences on the business of the RAF… and society as a whole.”

8. Signs of Recovery? Transport Committee Chair Weighs In

Despite the overwhelming challenges, the Transport Committee Chair has noted that the RAF is showing some signs of recovery, while stressing that reform efforts must accelerate. The RAF’s stated operating model aims to fast-track the payment of claims, with a target of settling all new claims within 120 days and reducing legal costs as a proportion of total expenditure.

The RAF also hosted a Settlement Drive at Ngwelezane Hospital in February 2026 — the second instalment of its settlement initiative — aimed at resolving outstanding claims more efficiently.

9. Road Safety: The Root Cause That Must Be Addressed

Experts consistently point out that no funding model or administrative reform will be sufficient without a serious commitment to improving road safety in South Africa. The World Health Organisation rates South Africa’s road traffic law enforcement at just 30% — far below international standards.

Professor Klopper argues that government road safety efforts rely too heavily on roadblocks, while many of those injured or killed on South African roads are pedestrians. He highlights head-on collisions and poor compliance with traffic laws as major contributors to serious injuries and deaths.

“The solution is two-pronged. First of all, genuinely look at road safety.”

What Does This Mean for RAF Claimants?

If you have been injured in a road accident in South Africa, or if you are waiting for an outstanding RAF claim to be paid, here is what you need to know:

• If your claim was rejected due to the RAF1 form: You have until 30 September 2026 to resubmit your claim using the older 2008 form.
• If you are an undocumented foreign national: The SCA ruling means you may now be entitled to claim from the RAF, regardless of your documentation status at the time of the accident.
• If your finalised claim has not been paid: Legal action is being taken to compel the RAF to explain and remedy payment delays. Consult a qualified RAF attorney if your payment is overdue.
• Statutory cap increase: As of 31 January 2026, the RAF officially increased the statutory cap for loss of income and loss of support claims — check with your attorney whether this affects your claim.

Conclusion: A Fund at a Crossroads

The Road Accident Fund stands at a critical crossroads in 2026. With an estimated R500 billion in outstanding liabilities, a funding model under threat from the EV revolution, hundreds of thousands of unpaid and re-opened claims, and a governance crisis that has led to criminal charges against a former CEO, the pressure for meaningful reform has never been greater.

The coming months — particularly the conclusion of the Department of Transport’s funding review and the September deadline for resubmission of rejected claims — will be pivotal in determining the future of road accident compensation in South Africa.

For road accident victims, attorneys, and motorists alike, staying informed about RAF developments is more important than ever.

Sources: EWN, IOL Business, Moneyweb, Gert Nel Inc Attorneys, Africa24TV | Published: 5 July 2026