Bloomberg reports that government has begun talks to regulate the minibus taxi industry, a key economic sector that transports 40% of the population, but whose reputation has been tarnished by lawlessness and a poor safety record.
The private industry employs 300,000 drivers and generates an estimated R90 billion in revenue every year. Taxis are often the only option for workers in low-income areas as the nation’s bus system is limited and dilapidated passenger trains are prone to lengthy delays. In a virtual conference address last week to stakeholders in the industry, President Cyril Ramaphosa said: “Given its financial size, formalising the taxi industry is a vital step toward ensuring its contribution to the national tax revenue base.” He said that among the challenges facing the industry were labor relations, allegations of exploitation of workers and compliance with tax laws. The talks might eventually result in an accord that would be “anchored in the rule of law,” Ramaphosa said. According to Transport Minister Fikile Mbalula, “something fundamental” should be on the table by April 2021. Access to finance, skills training and subsidies are among the issues being discussed. Phillip Taaibosch of the SA National Taxi Council (Santaco) told the conference that stronger regulation was needed following persistent reports of abuse of passengers.
- Read the original of the report in the above regard by Gemma Gatticchi at Moneyweb
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