AA warms of ‘significant implications' of underfunding Rea Vaya bus service
The Johannesburg municipality says minibus taxis still account for 91% of monthly trips, leaving Rea Vaya and Metrobus lagging behind.
The Automobile Association of South Africa (AA) is lamenting a potential public transport crisis brewing in Johannesburg.
The entity accused Rea Vaya of mismanagement, which has dented public confidence and impeded low-income commuters.
Despite having millions earmarked for bus services in the coming financial year, the AA believes more needs to be done to provide customers with an attractive public alternative.
'Not just a financial loss'
The AA stated that the Johannesburg municipality had lost more than R300 million from a public transport grant due to operational failures.
'Originally earmarked to support and expand the Rea Vaya network, the lost funding carries significant implications, not only for the city's mobility agenda but for road users, particularly for low-income commuters who rely on affordable and reliable transport options,' stated the AA on Monday.
'This is not just a financial loss, it's a missed opportunity to improve the lives of thousands of Johannesburg residents who depend on public transport to access work, education, and essential services,' stated AA CEO Bobby Ramagwede.
The AA added that the cost of private vehicle ownership was prohibitive and that public transport was a vital avenue for the personal movement of the poor.
'The implications of this funding go beyond mismanagement: they highlight a chronic inability to plan, execute, and maintain public transport systems with integrity, transparency, and accountability,' the AA added.
Budget for Rea Vaya and Metrobus
In the Johannesburg municipality's 2025/26 Integrated Development Plan (IDP), the city states that 10.2 million trips are made monthly via minibus or taxi.
The city states that this accounts for 91% of all public transport trips in Johannesburg, leaving Rea Vaya and Metrobus trailing.
The IDP states that Metrobus serviced 3.3 million passengers via 229 routes in the last financial year, while the Department of Transport aims to have Rea Vaya facilitating 13 million passenger trips annually by the end of the year.
Rea Vaya's proposed budget for the coming year includes R12.5 million for land acquisition, R25 million for station rehabilitation and R150 million for an automated fare collection system.
For Metrobus, at least R90 million has been proposed for the entity for the next financial year, including R32 million for new Metrobuses.
New route to success
The AA's sentiments suggest that the funding would be in vain if Rea Vaya did not develop a clear vision of its future.
'Without decisive action and a turnaround strategy, Johannesburg risks further isolating low-income communities and increasing reliance on private vehicles, which could worsen traffic congestion, road safety risks, and environmental strain,' the AA stated.
The entity called for engagement with civil society and collaboration with national stakeholders to help realise Rea Vaya's potential.
'We cannot afford to waste time or resources. Johannesburg residents need a transport system that works — and leadership that makes it happen,'
NOW READ: R140m Rea Vaya depot stalls as informal settlement blocks progress
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
IOL News
2 days ago
- IOL News
Fairvest reports robust interim distributable income growth and acquires five properties
Fairvest's Southview Centre in Soshanguwe. The group is steadily transforming its diversified commercial property portfolio to one that focuses on retail centres for lower income communities. Image: Supplied Fairvest, which Friday announced the acquisition of five properties for R477.7 million, increased its interim distribution for its B share by 8.8%, a performance well above inflation and which ranks it among the leaders in South Africa's REIT sector at present. Fairvest owns and manages a portfolio of 127 retail, office, and industrial properties, valued at R12.5 billion. During the six months to March 31, the group increased its stake in Dipula Properties to 26.3% from 5%, which was accretive to earnings and loan-to-value. 'Fairvest is making progress in transforming its diverse portfolio by improving the quality, while pursuing its aim of becoming a retail-only REIT servicing low-income communities in South Africa. The portfolio transformation is taking place at a slow and measured pace,' CEO Darren Wilder said in an interview. The strategy involves disposing of non-core assets and reinvesting in retail-focused properties - about 70% of revenue is currently generated from retail properties, he said. Consistent with this plan, Fairvest acquired five retail properties in KwaZulu-Natal and the Western Cape: Nquthu Shopping Centre, Ulundi Shopping Centre, Eyethu Junction, and Shoprite Manguzi in KwaZulu-Natal. These shopping centres have key food retailers, including Shoprite, Boxer, and SuperSpar, as anchor tenants. Also, an agreement was reached to acquire Thembalethu Square, outside George in the Western Cape, which is anchored by Shoprite and Boxer. Fairvest owns 51% of the issued shares in the new acquiring company. Wilder said they were 'always on the lookout' for assets that fitted their strategic focus. Fairvest disposed of one industrial property valued at R24m during the period and at a 14.3% premium to book value. Capital expenditure of R139m included R19.8m for further investments in solar initiatives. The group also invested R76.6m in fibre network infrastructure, which earns rental income. 'The portfolio continues to benefit from the disciplined execution of our strategy - vacancies remain consistently low, tenant quality has improved and the portfolio remains operationally robust. These solid fundamentals, combined with conservative balance sheet management, position the group for sustained growth,' said Wilder. There was positive letting activity in the six months, with 236 new deals and 216 renewals. Vacancies edged up to 5.5% from 4.3%. The entire 8% increase in property expenses was linked to higher municipal costs. Excluding this, operating expenses decreased by 1.9%. Property expenses were expected to increase around 7% for the year, said Wilder. Net loans of R4.4bn represented a loan-to-value of 31.8%, a reduction from 33.3% at the September 2023 year end. Cash on hand and undrawn debt facilities stood at R547.4m by the end of the interim period. Progress was made on the business continuity strategy - around 48.3% of the portfolio's gross lettable area has access to either partial or complete backup power. The number of solar plants stood at 46, with total installed capacity of 21.9 MWp. These plants provided 16.7% of the combined portfolio's electricity needs in the six months. Clean, renewable energy generated during this time amounted to R33.1m. A further eight plants were expected to add some 2.1 MWp of capacity.
The Citizen
3 days ago
- The Citizen
EHLANZENI DISTRICT MUNICIPALITY
Less than a minute Content Supplied Less than a minute PUBLIC NOTICE: APPROVED 2025/26 REVIEWED INTEGRATED DEVELOPMENT PLAN (IDP), 2025/26 FINAL BUDGET AND MEDIUM-TERM REVENUE AND EXPENDITURE FRAMEWORK (MTREF) For any enquiries, contact or send WhatsApp messages to: * IDP: Ms S Bonini on 013 759 8698/072 606 1328 * Budget: Mr D van der Merwe on 013 759 8532/079 692 7489. At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
Daily Maverick
7 days ago
- Daily Maverick
Nelson Mandela Bay council to decide this week if electricity tariff will rise by 12%
The Nelson Mandela Bay Municipality will vote on the metro's proposed budget, which includes a 12% increase in electricity tariffs — along with rises for other municipal services. The discussion, however, comes as the Electricity and Energy Directorate finds itself in dire financial and governance straits, with funding still not forthcoming for repairs to the high voltage supply line, which provides power to a large part of the city. The Nelson Mandela Bay metro has admitted in its own Integrated Development Plan that it is to present before council this week that electricity outages in the metro are at an all-time high. Yet the budget for the 2025/2026 financial year proposes that consumers pay 12% more for electricity. The plan notes that the Average System Interruption Frequency Index, which measures how often the average customer experiences outages, has reached record levels, primarily due to high-voltage events. These are caused by cable faults, theft and vandalism of fibre cables that trigger unnecessary feeder trips. The document also notes that outages last longer, with forced load reductions worsening reliability indicators. Meanwhile, the metro's Electricity and Energy Directorate is in a financial crisis, operating at a R1.2-billion loss as it struggles to curb illegal connections, vandalism and the collapse of grid infrastructure. One visible example of municipal inaction is the Grogro informal settlement, where illegal electricity connections stretch across Kragga Kamma Road to a substation. These makeshift cables frequently catch fire. In a letter shared with residents, ward councillor Margaret de Andrade wrote, 'My office has engaged in numerous meetings with the relevant departments on this matter, and we have received commitments on several fronts. However, to date, there has been no meaningful feedback or coordinated action. 'As one of your officials previously stated, 'I have forgotten about Grogro'. 'If this sentiment reflects the current level of attention, it is deeply concerning and unacceptable given the gravity of the situation. 'Unrest risk imminent' 'This is no longer just an operational issue — it is a volatile crisis. The community is growing increasingly frustrated due to the lack of visible intervention, and tensions are rising. The risk of unrest, fires and harm to both residents and municipal staff is imminent. 'I strongly urge all departments to urgently coordinate and communicate with one another. We need immediate alignment between Electricity and Energy, Safety and Security, Legal Services, Human Settlements and Disaster Management.' In addition, according to the metro's reports, about 22% of residential electricity meters have been tampered with. In the proposed budget, it is stated: 'As previously reported to Council, it is important to note that the financial position of the Electricity Service is under immense pressure due to the extent of electricity losses, which impact significantly on the financial sustainability of the municipality. This is supported by the fact that the budget for Electricity Bulk Purchases exceeds the total Electricity Service Charges budget. This means that the Electricity Service, which is a Trading Service, is operating at a substantial deficit, requiring support from property rates.' The 12% proposed tariff hike still needs approval by the National Energy Regulator, and if granted, will kick in on 1 July. However, CEO of the Nelson Mandela Bay Business Chamber Denise van Huyssteen said they had not seen the metro's application to Nersa. This is the first year that Nersa will publish all applications on its website; the metro's application also doesn't appear there. Van Huyssteen pointed out that the manufacturing industry was the metro's largest electricity consumer (about 59%) and as a result, organised business in Nelson Mandela Bay would like to have more input on the electricity budget. Van Huyssteen warned that, at the current trajectory, there was a real risk that the municipality might default on its Eskom bulk electricity payments. She noted that if the increase remained capped at 12%, business was unlikely to oppose it. In 2022, the metro led litigation against Nersa, securing a ruling that the general guideline and benchmarking method the regulator had used to determine increases was unconstitutional. The metro argued that the municipality should be required to show Nersa how much it cost to distribute electricity bought from Eskom. Van Huyssteen said programmes such as the geyser control initiative should be reinstated, as it had collapsed. 'We want to add that the municipality needs the urgent support of Eskom to fix its infrastructure,' she said. An additional threat to the metro's electricity security is the temporary repairs to the high-voltage line that collapsed last year. In April, one of the pylons partially collapsed again, damaging the temporary fix. Ward councillors Sean Tappan and Dries van der Westhuyzen said earlier this month that there was now a temporary repair to the temporary repair.
