South Africa’s Public Transport Network Grant, established in 2007 to modernize the country’s transit systems, will be phased out over the next three years following a comprehensive review that found the program consistently failed to meet its goals. National Treasury and Transport Department officials conveyed the decision to Parliament’s Portfolio Committee on Transport, emphasizing a strategic reallocation of resources toward initiatives with greater potential impact.
The grant was initially launched as part of a broader effort to upgrade public transport infrastructure ahead of the 2010 FIFA World Cup, with 13 cities selected to receive funding. Over its lifespan, the program was appropriated just under 95 billion rand. Of that amount, 88 billion rand was transferred to implementing entities, and just over 75 billion rand was ultimately spent.
Despite this substantial investment, officials reported that only a limited number of projects achieved meaningful outcomes. Commuter adoption remained low, particularly when compared to other transport options such as the minibus taxi industry. Transport Minister Barbara Creecy acknowledged the program’s shortcomings, stating, “It can’t be acceptable for a publicly funded grant, a grant that is funded by taxpayers’ money, to underperform for almost 20 years.”
Officials highlighted several implementation challenges, including municipalities facing difficulties with planning, technical capacity, and effective utilization of allocated funds. In certain instances, projects failed to progress beyond the conceptual stage. In response, the department announced a strategic pivot: moving away from an infrastructure-heavy model toward an operations-focused framework. Future transport contracts will prioritize measurable outcomes related to passenger movement rather than capital expenditure on physical assets alone.
During the committee session, MPs raised pointed questions about the program’s oversight and legacy. Lawmakers asked why warning signs were not acted upon sooner, what will happen to incomplete projects, and how the phase-out will affect daily commuters who depend on public transport. One member of the committee remarked, “There has not been sufficient or enough oversight on this project. We cannot continue to pump money into something which is not working,” urging both Treasury and the Transport Department to present a clear path forward.
As the grant enters its three-year wind-down period, authorities face the dual challenge of ensuring continuity for commuters while redirecting public funds toward more effective, sustainable transport solutions. The shift underscores a broader commitment to accountability and results-driven public investment.