Thokozani Mtshali
The announcement this week by the Gauteng Ministry of Transport and the South African Taxi Council of agreed measures to regulate the troubled industry brings hope for commuters caught in the crossfire of warring taxi factions.
The announcement comes after years of hard work by the national Ministry of Transport in a quest to unify the industry’s 11 federations.
In 1992 the national taxi task team was set up to investigate the causes and ways of ending the conflicts which have engulfed the industry since its inception. Some of the task team’s recommendations were that the ministry regulate and formalise the industry and work towards its economic development. These recommendations led to negotiations between the government and taxi organisations, which ultimately saw all taxi organisations agreeing to work together.
As a result the South African Taxi Council was formed in August last year. The council has organs in all nine provinces and now represents all minibus taxi operators.
The announcement this week by Gauteng MEC for Transport Joyce Kgoali of the birth of the Gauteng Taxi Council makes the province the first to set in place the structures agreed upon by the national ministry and the South African Taxi Council.
The province has been demarcated into six districts for the purpose of formalising the industry: Greater Johannesburg, Lekoa Vaal, East Gauteng, Kyalami, Pretoria and West Gauteng. They will have an input in formulating transport legislation and route markings.
Kgoali said another development agreed upon with the council is that the national government will subsidise all registered minibus taxis. Until now minibus taxis, unlike trains and buses, did not receive a government subsidy.
To ensure economic growth and self- sustainment of the taxi industry, the government will also pursue joint business ventures with taxi associations. The two parties have agreed to focus on the economic development of the taxi industry, which contributes an estimated R12-billion towards the country’s economy each year.
Kgoali unveiled plans to launch Ubunye Investment Limited, which will be listed on the Johannesburg Stock Exchange. It will serve as the investment leg of the South African Taxi Council, and will help raise capital for members.
The two parties also aim to strike co- operative agreements with various supplier companies. Council members will have access to smart cards to buy tyres, cars and other spare parts.
The industry has been issued with 36 licences – each estimated to be worth R10-million – to sell petrol. This will benefit taxi operators, owners and employees because they will receive discounts on car parts, fuel, oil and servicing, and it protects them from high bank rates.
The restructuring is aimed at transforming the taxi industry into a customer-friendly business, which will give relief to the 12- million regular taxi commuters caught up in the fight for dominance among taxi organisations.
In a bid to end conflicts, the council and the national ministry have agreed to overhaul the issuing of new permits to emerging taxi entrepreneurs since most routes are already over-subscribed. The two parties plan to introduce a colour-coded route system, satellite surveillance and a taxi-card fare system for commuters.