The Passenger Rail Agency of South Africa (PRASA) has achieved a key milestone in its turnaround journey, securing its first unqualified audit opinion in nine years. Group CEO Hishaam Emeran made the announcement during the agency’s annual performance briefing at Umjantshi House in Johannesburg.
The unqualified audit represents more than a technical victory; it signifies restored financial discipline and a renewed culture of accountability within one of South Africa’s most vital state-owned enterprises. With an asset base ranking fourth among all SOEs, PRASA’s operational health carries significant implications for national mobility, employment, and infrastructure growth.
Emeran highlighted that the 2024/25 financial year had been one of sustained recovery and growth, following what he described as the “key turning point” of 2022/23, which saw the early fruits of governance reforms and infrastructure rehabilitation begin to show tangible results.
During the past year, PRASA recorded 77 million passenger trips, underscoring its central role in connecting South Africans to jobs, education, essential services, and also used for sporting and cultural events. Out of 40 rail corridors, 35 have been fully restored, a major leap in rebuilding a network that had suffered extensive damage and neglect over previous years. Service quality also saw marked improvement, with on-time performance reaching 91% and customer satisfaction rising to 75.8%.
Employment creation remains a significant outcome of PRASA’s capital investments. Through a R21.2-billion infrastructure programme, the agency facilitated the creation of 84,918 jobs, nearly half of which benefited young people. Fleet expansion continued at a pace, with 60 new Electric Multiple Unit (EMU) trains delivered, well above the annual target of 41.
The agency’s financial performance further reflected this upward trajectory. PRASA reported R707.82 million in commercial revenue, dramatically exceeding its initial target of R65 million. Much of this success stems from the activities of its property and investment arm, Intersite, which surpassed its budgeted contribution, delivering R708 million against a R675-million forecast. Intersite currently manages 26 projects nationwide, including student housing developments in Braamfontein and property ventures in the Western Cape. The subsidiary’s portfolio of transit-oriented developments is expected to generate R2.5 billion in value by 2035, strengthening PRASA’s non-fare revenue base.
Emeran said the performance underscores PRASA’s dual commitment to public service and commercial sustainability. “PRASA’s mandate is to contribute to the socio-economic objectives of the country,” he stated. “But sustainability is (equally) important, so we can meet our commitments.”
Over the last three years, PRASA has spent R52 billion on approved capital projects, a figure that reflects both an acceleration in delivery and a shift away from years of underspending. For the 2024/25 fiscal year, PRASA spent R21 billion, exceeding its government allocation of R12 billion by 83%. This over-expenditure, while significant, is attributed to the rapid execution of delayed infrastructure programmes, signalling a determined effort to catch up on long-stalled projects.
Operationally, PRASA met 93% of its annual targets, achieving 13 of 14 key objectives outlined for the year. The only area that fell short was long-distance passenger travel, where ridership remains below pre-pandemic levels. Nevertheless, the agency continues to make progress in modernising its network and restoring critical corridors, with 313 stations now recovered nationwide.
PRASA’s relationship with Transnet remains strategically important, particularly in the KwaZulu-Natal region, where collaboration on shared rail infrastructure has been key to maintaining national logistics efficiency.
Beyond operational figures, PRASA’s turnaround carries broader economic and social meaning. Reliable, affordable public transport is a cornerstone of South Africa’s inclusive growth agenda, and the agency’s financial stabilisation provides both confidence to government stakeholders and opportunities for investors in transport-linked infrastructure.
With its governance reforms bearing fruit, commercial revenues rising, and a growing emphasis on sustainability, PRASA’s leadership believes the agency has finally emerged from years of turbulence.