How the minibus taxi industry became the backbone of South Africa's economy
What began as a survival response to apartheid’s brutal spatial planning has today become the lifeblood of South Africa’s urban transport system.
Image: File
What began as a survival response to apartheid’s brutal spatial planning has today become the lifeblood of South Africa’s urban transport system.
In the face of exclusion and inadequate public transit options, Black South Africans turned to minibus taxis as a means of mobility and economic opportunity.
According to Jane Barrett's study from the International Labour Office, the taxi industry emerged in the late 1970s as a response to the inadequacies of state-owned rail and subsidised bus services, which were expensive and often inaccessible to Black communities.
"The growth of the kombi taxi industry in the late 1970s was in large part a response to this. Initially, the State acted to protect the existing public transport systems, and prevented entrepreneurs from operating kombi taxis by refusing to issue road carrier permits to them," The study notes.
"In the late 1970s, prospective minibus taxi operators found a loophole in the Road Transportation Act of 1977, which allowed them to apply for a road carrier permit and operate legally if they left one seat of a ten-seater empty,"
Since then, the industry has grown from strength to strength, transporting millions of South Africans every day. According to reports, the taxi industry transports around 15 million commuters daily, accounting for 65% of the country's public transport usage.
Reports further indicate that the industry now generates between R90 billion and R100 billion annually, solidifying its status as the backbone of the country's transport infrastructure.
The industry is also said to employ thousands of South Africans. Estimates suggest that it employs around 600,000 individuals, including drivers, queue marshals, car washers, and informal traders operating at taxi ranks.
However, despite its growth and economic contributions, the sector continues to struggle with ongoing violence and a lack of formalisation.
However, the South African National Taxi Council (SANTACO) says there is a need for change but insists that any transition toward formalisation must respect the unique dynamics of the sector.
"We are in support of all efforts to help our industry to be formalised, especially if such efforts take into account the distinctive nature of the taxi industry and how off-the-shelf solutions from legislation, regulations and or business practice may need to be relooked in order to match the taxi business model".
IOL Business