By Akani Nkuna
Transport Minister Barbara Creecy has outlined a four-part overhaul of the minibus taxi sector, including plans for cheaper vehicles and lower repayments, a new online licensing system and pilot taxi operating companies in every province.
Speaking at the SANTACO Summit on Women’s Safety and Empowerment in Transport on Monday, Creecy said government was working with the taxi council’s national leadership on reforms aimed at formalising and “right-sizing” the industry.
“Fragmentation in the governance of public transport has highlighted the need for a new framework for road-based public transport. This includes consolidating fragmented funding streams and formally integrating the minibus taxi industry into a safer, more efficient, and better-regulated transport network,” Creecy said.
“This reform process will support the long-term sustainability of the sector while de-risking the taxi industry to attract greater formal investment through improved regulation, transparency, and safety standards.”
Creecy said the first element would involve “repurposing the current taxi recapitalisation grant so it supports the industry to buy cheaper vehicles with lower repayments”.
Government also plans to accelerate the development of a new online licensing system aimed at eliminating backlogs in operating licence renewals and improving decision-making by provincial regulatory entities.
A further reform would establish nine pilot Transport Operating Companies — one in each province — as part of efforts to formalise and right-size the taxi industry and test new forms of industry management and investment.
The Department of Transport also plans to reform the public transport grant system by bringing the Public Transport Operations Grant and Public Transport Network Grant into a unified public transport support model.
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The taxi industry remains the backbone of public transport for millions of South Africans. Creecy said it carries about eight million commuters a day and is one of the country’s largest black-owned sectors, with annual revenue estimated at between R60 billion and R100 billion.
Creecy said the department was continuing discussions with SANTACO and financial institutions on ways to de-risk the industry and develop more accessible vehicle financing models.
The summit also focused on the position and safety of women in the taxi industry, including gender-based violence and femicide, economic empowerment and greater representation in senior roles.
Creecy said many women entered the taxi business after inheriting routes or permits following the death of a husband or parent, often without formal preparation for running the business.
“Ongoing and active measures such as institutional support, training, mentorship and access to finance, need to be at the core of SANTACO Women’s efforts to ensure smooth transition, provide direct support in such instances.”
She said the industry’s extensive daily interaction with communities also gave it a responsibility to help tackle gender-based violence and femicide.
Creecy commended initiatives including the Safe Minibus Taxi Charter and anti-GBV training, but said stronger action was needed at taxi ranks and along routes.
“But training is only the first gear. We need active enforcement and zero tolerance for abuse at every rank and on every route. Our roads and taxi ranks must be turned into safe zones. Drivers, operators, and marshals must be the first line of defence. If you see harassment, you must speak up,” she said.
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