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Greetings to all
The Portfolio Committee on Transport takes this platform to extend its heartfelt condolences to the families of the victims of the taxi violence, which has taken place in certain places in the country.
- Taxi Recapitalisation Programme
The taxi industry is the largest public transportation mode in South Africa, estimated to transport approximately 15 million commuters per day. This translates into 68% of all commuters. It was against that backdrop that government decided to revise the Taxi Recapitalisation Programme (TRP) to meet the current and future needs of commuters and to stimulate the economic potential of the industry. The Revised Taxi Recapitalisation Programme (RTRP) is part of an extended scope of the TRP implemented from 2006 to 2018.
In March 2019, the Department of Transport appointed Anthus Services 84 (Pty) Ltd (Anthus) as the technical partner responsible for the administration and management of the RTRP. In accordance with the mandate of the Department, Anthus established the Taxi Recapitalisation SA (TRSA) as the trading entity which implements the RTRP.
The TRP was initially approved for implementation by the Cabinet in 2006, for a period of seven years, at a total cost of R7.7 billion. This was one of the many interventions that the government introduced to transform and restructure the taxi industry, improving its service delivery to make it safer and more reliable. The TRP initially focused on the replacement of unsafe, unreliable and unroadworthy taxi fleets with purpose-built new taxi vehicles. In this regard, a total of 135 894 taxi vehicles were identified for scrapping in 2006. By the end of September 2018, a total of 72 653 of the 135 894 old taxi vehicles had been scrapped, and R4.4 billion in scrapping allowance had been paid.
Launching the RTRP in 2019, the government contended that the programme was intended to extend the scope beyond the scrapping of the balance of the 135894 old taxi vehicles to include the following:
- Commercialisation: The development of sustainable commercially-viable RTRP management solutions leveraging and exploiting opportunities available in the minibus taxi industry’s entire value chain with taxi operators as active and meaningful participants.
- Illegal operations and verification process: This refers to the determination of the extent of illegal taxi operations across the country by conducting a nationwide survey to populate a comprehensive database of minibus taxi industry operators and operations.
- Change management and unity: The department intends to use the RTRP as a catalyst for change to the taxi industry’s operating model.
Currently, the industry operates on an individual taxi ownership model and collaborative route management structure through local taxi associations, regional, provincial and national taxi councils. It is argued that the individual ownership model and taxi association route management model are at the heart of the endemic conflict and violence which have bedevilled the taxi industry for decades. To this end, the department seeks to use the RTRP to unify the taxi industry by introducing collaborative ownership and operating models, using structures such as cooperatives and corporatisation.
The department should provide the committee with the amount spent by the TRSA on the RTRP. In addition, the department should furnish the committee with the provincial breakdown of the number of taxi vehicles scrapped by the TRSA under the RTRP to date, as well as the amount spent in this regard. The RTRP continues to deal with the scrapping of unroadworthy vehicles but also aims to regularise and professionalise the minibus taxi industry by improving safety and incorporating the industry into transport planning.
- E-hailing services
New legislation is being introduced to better regulate the e-hailing industry, following a substantial increase in violence against e-hailing drivers in Soweto and KZN.
The Minister of Transport recently said that the National Land Transport Amendment (NLTA) Act would introduce regulations for e-hailing services like Bolt and Uber, and could help ease tensions with the taxi industry.
While this announcement is likely a response to the Maponya Mall incident last month, which saw an e-hailing driver killed, the NLTA has been on the books for well over a decade and was assented to by President Cyril Ramaphosa in 2024. Under this legislation, e-hailing drivers will no longer need to use charter permits and meter taxi operating licenses and instead receive an official e-hailing operating license. Vehicles will also carry or be branded with a sign indicating they are e-hailing vehicles, and their licenses will indicate the geographic areas in which they are approved to operate.
Drivers will be vetted and subject to criminal record checks under the new regulations, and a professional driving permit will also be required.
Along with these regulations, the legislation has new security requirements for e-hailing drivers and their vehicles. This includes needing a panic button and drivers ensuring their profile photo is up to date for accurate client identification.
Should drivers fail to adhere to these new regulations, they could incur a two-year prison sentence or a financial penalty of up to R100 000. Regulators are also empowered to withdraw or suspend licenses as needed when an operator is found to be violating the NLTA.
The minister approved the NLTA in March this year, and the legislation is currently being translated into a second official language ahead of its being gazetted for implementation, which is currently slated for October.
The incident at Maponya Mall is merely the most recent in a long string of incidents of violence between taxi drivers and e-hailing platforms. The desire to resolve this conflict has been one of the primary motivators behind pushing the NLTA Act, with the hope that the legislation could reduce tensions between the two parties.
One of the reasons for the conflict was the concerns of the Soweto Taxi Association, which took issue with individuals without credentials posing as e-hailing drivers to make a commission, frequently at uncompetitive rates. The South African National Taxi Council (Santaco) echoed this sentiment and noted that the NLTA is essential in the current situation where unregulated operators have become commonplace. While the new Act will help reduce violence, it won’t prevent that natural evolution of the transport industry.
The Minister of Transport says laws imposing various new requirements on e-hailing operators and drivers in South Africa could be gazetted within two months. The Act will require e-hailing drivers to get operating licences that stipulate geographical areas where they may transport passengers for payment, as is already required for metered taxi drivers.
They must also obtain a professional driving permit, pass a criminal background check and fit their vehicles with panic buttons for quick emergency response.
- CATA and CODETA
The Portfolio Committee on Transport opines that the taxi industry should be formalised and regulated. This includes, among other things, shifting from an informal, fragmented model to a regulated, corporate structure that improves accountability, safety and financial management for operators and commuters. This process involves establishing formal businesses and holding companies, creating robust licensing and regulatory systems, implementing technology for improved management, and adapting to new business models, such as e-hailing, with a focus on making the industry more efficient, professional and profitable.
The committee appeals to both CODETA and CATA to resolve their differences amicably. The peaceful resolution of the conflict will not only strengthen the foundation of public transport in the province, but it will also underscore the power of dialogue and accountability in overcoming conflict, ensuring that the interests of commuters come first.
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