Transport minister raises concerns over lack of formalisation in taxi Industry

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6 hours ago

Transport Minister Barbara Creecy has expressed serious concern over the government's ongoing failure to formalise South Africa's taxi industry
Image: Armand Hough/Independent Newspapers
Transport Minister Barbara Creecy has expressed serious concern over the government's ongoing failure to formalise South Africa's taxi industry and align it with what she called "normal competitive business practices".
'I am very concerned that we do seem to be failing to formalise the taxi industry and to ensure that this industry operates with what one could call normal competitive business practices,' Creecy said in interview broadcaster Newzroom Afrika..
She noted that this issue has been central in her discussions with national taxi associations, and affirmed that it remains a top priority in the government's engagement with the sector.
'It's my belief that we can't continue this way. It brings the industry into disrepute, and it poses a danger to commuters,' she added.
Her comments come amid escalating concerns about violence in the taxi sector. Last week, four people were killed at the Emfuleni taxi rank in the Western Cape, when armed men opened fire.
According to reports police believe the shooting may have been triggered by a dispute between the taxi associations CATA and CODETA, who are reportedly in conflict over control of a taxi route linking Mfuleni and Somerset West.
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Responding to the Minister's comments, South African National Taxi Council (Santaco) national spokesperson Mmatshikhidi Rebecca Phala acknowledged the slow pace of reform.
"The Minister's concern is our concern, the pace at which efforts to formalise the taxi industry are going is concerning, since the 2020 National Taxi Lekgotla during which we resolved to professionalize the industry through collaboration, processes have been moving at a pace slower than we would have hoped for," Phala said.
"However, not all hope is lost. We are hard at work with our road safety initiatives, use of security services for our ranks, driver and marshal training, introduction of automated fare collection systems and the restoration of other commuter safety initiatives. We draw inspiration in hearing the Minister continue to highlight the work that has to be undertaken alongside the department and other agencies and private partners".
Creecy emphasised the crucial role of the taxi industry, which she said transports nearly 80% of the country's commuters and is 100% black-owned.
'We really need to move from the current situation,' she urged, calling for deeper structural reform, better oversight, and collaborative problem-solving across all levels of government and industry.
According to Phala, changes are underway within the industry.
"All taxi associations are now moving from the operation of sole proprietor taxi businesses to the formation of cooperatives which will employ drivers and other workforces of the industry into employees who will receive salaries and other work benefits in alignment with the Basic Conditions Of Employment. Operators are becoming directors of taxi businesses though cooperatives to ensure tax compliance and other levy contributions," she said.
On the issue of violence, Phala said the industry was working with all law enforcement.
"To address ongoing violence, we have collaborative efforts with law enforcement agencies to combat crimes. Equally, because we understand that turf wars are linked to the competitive nature of the transport sector, we are introducing other value chain opportunities like sale of lubricants and fuel, sale of vehicle parts and other businesses for operators to leverage multiple business opportunities and not focus on one opportunity".
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