StratEcon has been providing rigorous, independent economic analysis to justify investment and set policy to decision-makers for over two decades.
Roads are the backbone of Southern Africa’s transport network. Whether the question is the economic case for upgrading a major national route, the feasibility of a toll-funded corridor, or the optimal design of a public transport system, decision-makers need rigorous, independent economic analysis to justify investment and set policy. StratEcon has been providing exactly that for over two decades.
Transport economics sits at the intersection of engineering, finance and public policy. Getting the analysis right matters enormously, not just for project funders and road agencies, but for the communities whose lives are shaped by how their infrastructure is designed, priced and maintained.
The central question in any road investment appraisal is whether the benefits to society outweigh the costs. StratEcon conducts cost-benefit analyses of road upgrades, bypasses and greenfield construction, quantifying travel time savings, vehicle operating costs, accident reductions, emission benefits and macroeconomic multiplier effects. We also assess what the project contributes to national GDP and employment, which is increasingly important for projects seeking public funding.
When a road is to be funded through tolling, the analysis becomes more demanding. It is not sufficient to show that the project is economically efficient in aggregate. It is also necessary to assess whether individual road users benefit sufficiently to justify the toll, section by section and user type by user type, and whether proposed tariffs are affordable relative to journey frequency and household income. StratEcon has extensive experience in toll feasibility analysis and in supporting road agencies through the regulatory and tender processes that follow.
Public transport appraisal requires the identification and measurement of a wide range of benefits: direct gains such as reduced travel times, lower costs and improved safety for those switching modes; broader economic benefits including agglomeration, labour mobility and land use change; and less tangible impacts such as reduced commuting stress and improved accessibility. StratEcon has developed methodologies that capture these layered benefits credibly, providing the analytical foundation that funders and government approvers require.
StratEcon has been undertaking transport economics engagements since 2002, building one of the deepest track records in this field in South Africa. Our clients include the South African National Roads Agency (SANRAL), the Gautrain Management Agency, PRASA, national and provincial government departments and several municipal authorities.
In roads, our work has included economic assessments of upgrade options on major corridors across South Africa, including the N3 between Pietermaritzburg and Durban, the N2 between Umdloti and Isipingo, the Gauteng Freeway Improvement Scheme, bypass alternatives at Butterworth and Dutywa in the Transkei, and tolling feasibility on multiple national routes. We have served as transaction and economic advisors to SANRAL on the Western Cape Toll Roads and the N1/N2 tender adjudication process. Internationally, we assessed road upgrade and financing options for the Mauritius Road Decongestion Programme under the Equator Principles framework and the national road EN4 in Mozambique.
In public transport, we have provided economic analysis for the post-2026 Gautrain operations (including the BFI funding application to National Treasury), an assessment of high-speed rail corridors for GTAC and the National Department of Transport, and the economic narrative for the Gauteng Rapid Rail Integrated Network Expansion. We are currently assisting the City of Cape Town with an economic assessment of formalised public transport scenarios and developing guidelines for the cost-benefit analysis of their transport projects.
Transport economics is a specialist field. It demands familiarity with established appraisal methodologies, an understanding of how road agencies and transport authorities commission and review analysis, and the ability to defend conclusions in complex, often contested, public processes.
StratEcon has been active in this field since 2002. Our work has spanned national highways, urban corridors, rural access roads and major public transport systems. Few firms in South Africa can point to a comparable breadth and depth of transport economics experience. Furthermore, StratEcon is busy developing the appraisal handbook for transport projects for the City of Cape Town. We understand not only the theory behind cost benefit analysis but also the practical application.
StratEcon works with national road agencies, transport authorities, municipalities and project sponsors on transport economics across South Africa and Africa. Contact us to arrange a no-obligation introductory discussion.