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After launching the lekgotla taxi public disclosure platform in August, Transport Minister Fikile Mbalula announced that the government was in talks to establish a subsidy to the taxi industry, to be implemented before April 1, 2021.
The industry, along with the Competition Commission, has been asking the government to subsidize taxis in the same way that it did buses and trains.
The taxi industry transports around 66.5% of passengers, while buses and trains were responsible for 23.6% and 9.9% respectively in the country.
During a press conference on Friday, Mbalula said that these facts describe the importance of the taxi industry.
“This is an industry that has enormous potential to become a model of real empowerment because it generates revenues in excess of R40 billion a year and consumes more than 2.1 billion liters of fuel a year,” he said.
Publishing the discussion papers for a national taxi lekgotla, Mbalula said the project would set the stage for stakeholder and public participation on the future of the taxi industry.
The lekgotla taxi planned to take place at the end of October 2020.
READ MORE: Black Business Council is committed to supporting Mbalula’s plans to formalize the taxi industry
The Minister said that the discussion papers were grouped into four main themes, including:
- Unity and leadership
- Taxi industry empowerment model
- Regulation of the taxi industry
- Professionalization of the taxi industry and customer service
“As we address discussions of industry unity and leadership, among others, we must have an honest and robust conversation about the key drivers of disunity and violence.
“We must ask tough questions about the billions that the government continues to invest in the industry in the form of a taxi recapitalization program.
“We must have an honest conversation about who are the true beneficiaries of these investments, so that we can make decisive interventions that allow the industry to become the main beneficiaries,” he said.
ALSO READ: Mbalula’s plan to unite the taxi industry is just a pipe dream unless the law is enforced, says Outa CEO
Mbalula admitted that the taxi industry “was not structured into legally recognized business units” and that corporate tax obligations, as well as labor laws, are not being implemented.
“What complicates matters is the existing number of taxis that operate without a license, including email services and seven-seater vehicles.
“Recently, I have seen the emergence of a union. The regulatory framework remains weak due to a fragmented approach, ”he said.
He also said that the parliament has already approved the National Land Transportation Law Project that establishes the regulatory framework to regulate email services.
“The bill is now before the president for approval,” he added.
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