JOHANNESBURG, Gauteng — The escalating cost of living crisis is taking a severe toll on the South African taxi industry, trapping operators between skyrocketing fuel prices and a commuting public that simply cannot afford further fare hikes. As vehicle financing costs surge and passenger numbers dwindle, industry leaders are warning that the sector is becoming financially unsustainable without immediate government intervention and formal subsidies.
Speaking from the bustling Randburg Taxi Rank, industry representatives painted a grim picture of the financial balancing act required to keep the country’s primary mode of public transport moving. The sector, which ferries an estimated 1.5 million passengers daily, is currently caught in a vice grip: operational expenses continue to climb, while the economically strained public is pushing back against necessary fare adjustments.
Fare Hikes and Falling Passenger Numbers
For operators running longer routes, the financial strain is particularly acute. Robert Mmola, deputy secretary of the Pretoria-based Pretoria, Randburg, Soshanguve (PRS) Taxi Association, noted that the cost of fuel has forced associations to adjust their pricing structures. For example, fares on routes from Pretoria to surrounding areas like Mabopane and Soshanguve have been increased from R45 to R50.
However, Mhola explained that these adjustments have led to a noticeable drop in commuter numbers. Because wages and salaries are not increasing at the same pace as inflation, many passengers are struggling to afford their daily commutes from point A to point B.
The Burden of Modernization and Debt
Beyond fuel, the capital expenditure required to maintain a modern taxi fleet is crippling for many owners. Mmola highlighted that operators are utilizing modern, safer vehicles, but the financial burden is immense. Monthly vehicle installments currently range between R18,000 and R19,000.
Compounding this issue is the stance of financial institutions. According to Mmola, banks are applying higher interest rates to minibus taxi vehicles compared to other asset classes, making it incredibly difficult for operators to finance their fleets or stay current on their monthly payments.
Sabata Mbobo, a Johannesburg spokesperson for the South African National Taxi Council (SANTACO), echoed these sentiments, noting that operators are frequently forced to dip into their personal coffers just to pay drivers and keep their vehicles on the road.
A Plea for Subsidies and Government Intervention
Both spokespeople emphasized a glaring disparity in the public transport sector: while government-subsidized bus services receive financial support, the minibus taxi industry operates entirely without subsidies.
“We are helping the government in a lot of cases by ferrying almost 1.5 million people a day, yet the government is doing nothing about that. It means we are just a social development to them,” Mbobo stated. He went as far as to suggest that a temporary industry shutdown—a strike lasting a day or two—might be the only way to force authorities to recognize the sector’s immense economic value and the catastrophic impact its collapse would have on the national workforce.
Mmola added that the government must intervene not only by introducing operator subsidies but also by regulating the exorbitant interest rates charged by banks on taxi vehicles. “You go to buses, they do have a subsidy. They get money from the government. But we, as the taxi industry, are getting nothing,” Mmola said.
Personal Toll on Operators
The macroeconomic pressures are translating into severe personal financial distress for the operators themselves. When asked about their personal cost of living, both men revealed that they are drowning in debt to keep their businesses afloat.
Mbobo admitted to being in deep arrears on his personal accounts, sacrificing his own livelihood to care for the taxi business, which he referred to as his “main baby.” Mmola shared a similar reality, noting that his monthly grocery bill has skyrocketed from R3,500 to over R5,000. With fewer commuters paying fares, he noted that operators are falling behind on their vehicle installments almost every month, making it incredibly difficult to sustain both their businesses and their families.
Engagements with the Department of Transport
Despite the dire circumstances, industry leadership has been actively engaging with the Minister of Transport and provincial MECs. Mmola acknowledged that these negotiations have yielded some positive results, such as the gradual clearing of backlogs for operating licenses, which are now being issued more consistently.
However, operators stress that administrative improvements are not enough. While other transport modes that receive subsidies have faltered or collapsed over the years, the resilient taxi industry remains the backbone of South African mobility. Moving forward, representatives are demanding comprehensive legislation and formal financial subsidies to ensure the industry’s survival in an increasingly hostile economic climate.
