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Breaking the regravelling trap: A fiscal-federalism contract for upgrading South Africa’s unpaved roads

Author

Listed:
  • Don Ross

    (UCT, Georgia State University, University College Cork)

  • Matthew Townshend

    (DNA Economics)

  • Vincent van der Westhuizen

    (DNA Economics)

Abstract

South Africa’s provincial and municipal road networks are dominated by low-volume gravel roads that are essential for service delivery and market access but are chronically under-upgraded. This paper argues that the persistence of repeated regravelling, reactive repairs, and post-disaster reinstatement is not primarily an engineering failure; it is an intergovernmental public investment problem. Responsibilities are decentralised across multiple principals and agents, benefits from upgrading are partly non-excludable and spill across jurisdictions, and budget holders face short-horizon fiscal constraints. The resulting wedge between national welfare and sub-national private incentives generates an underinvestment equilibrium in which economically justified upgrades are deferred and recurrent maintenance liabilities compound.

Suggested Citation

  • Don Ross & Matthew Townshend & Vincent van der Westhuizen, 2026. "Breaking the regravelling trap: A fiscal-federalism contract for upgrading South Africa’s unpaved roads," ERSA Working Paper Series 341, Economic Research Southern Africa.
    • Handle: RePEc:rza:ersawp:341
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    File URL: https://ersawps.org/index.php/working-paper-series/article/view/341/206
    File Function: First version, 2026
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    Keywords

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    JEL classification:

    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures

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