Roads Fund Revenue

Sources of Roads Fund Income

According to the Roads Fund Administration Act, the designated sources of income of the Roads Fund consist of:

  1. Appropriation by Parliament for the purposes of the Roads Fund;
  2. Roads Fund fuel levy; International transit fees;
  3. A percentage of road user levies including tariffs, taxes and tolls;
  4. and Such monies as may be paid to the Roads Fund by way of loans, grants or donations.

Since the RFA became operational in May 2007, the revenues for the Roads Fund have been derived only from Fuel Levy and International Transit Fees. The other three designated sources have remained unavailable to the Roads Fund. The RFA continues to lobby the Ministry of Finance to start collecting revenues from these other sources.

In February 2016 the Roads Fund Administration obtained cabinet approval to introduce road tolls in Malawi. The Administration is in the process of identifying consultants to undertake a feasibility study.

The Roads Fund Administration plans to negotiate with local financial institutions for a roads fund bond. The idea is to front-load financing of periodic maintenance of the paved public road network there by reducing the accumulated paved roads maintenance backlog.