South Africa's Minibus Taxis: A Complex Journey

30/07/2020

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In the vibrant tapestry of South Africa, few elements are as ubiquitous, as vital, and as complex as the minibus taxi. Far more than just a mode of transport, these vehicles represent a deep-seated socio-economic narrative, a testament to resilience, struggle, and the enduring legacy of a nation’s past. For millions of South Africans, particularly within the black community, the minibus taxi is the literal vehicle of daily life, connecting distant townships to urban centres, workplaces, and opportunities. This industry, born out of necessity and shaped by unique historical forces, offers a fascinating, if sometimes challenging, insight into the country's development.

What is the history of the minibus taxi industry in South Africa?
3.6.1 History of the Minibus Taxi Industry The minibus taxi industry in South Africa was established by black entrepreneurs and up to now it mostly serves the black community. Prior to the late 1970s, the South African state inhibited black involvement in the taxi industry through state regulations.

The story of the minibus taxi industry in South Africa is intrinsically linked to the nation's racialised history. Established predominantly by black entrepreneurs, and continuing to serve almost exclusively the black community, its roots are deeply embedded in the soil of disenfranchisement. Prior to the late 1970s, the apartheid state actively hindered black involvement in the transport sector through stringent regulations, limiting access to formal businesses and opportunities. This deliberate inhibition created a vacuum, a desperate need for accessible and affordable public transport for the vast majority of the population who were confined to peri-urban dormitory townships, often miles from their places of work.

It was this crucial need that spurred the organic emergence of the minibus taxi sector from the 1970s onwards. With the white minority regime and corporate South Africa largely unwilling to invest effectively in safe and affordable public transport for their black workforce and consumers, township entrepreneurs stepped into the breach. This wasn't a state-sponsored initiative or a product of affirmative action; it was, as aptly described, 'boot-straps stuff'. It was a raw, often brutal, blend of impressive entrepreneurial initiative and, at times, sheer warlordism. Operating on the grey margins of the law, the industry grew rapidly throughout the 1980s, sometimes under continuous harassment from authorities, yet paradoxically, at other times, with their tacit approval.

The socio-economic landscape that birthed this industry dates back even further, to the super-exploitation of black labour from the last quarter of the 19th century. The system of rural 'native' labour reserves, designed to feed mines and white-owned farms with cheap, influx-controlled labour, gradually gave way in the mid-20th century to the peri-urban dormitory township. These townships became the dominant sites for the social reproduction of racialised cheap labour, transforming annual migrancy into daily migrancy. Apartheid, therefore, wasn't solely about exclusion; it was also about an inferior, under-funded, and hyper-exploitative inclusion. This historical context explains the immense distances many commuters still travel daily, a challenge that profoundly impacts the viability and sustainability of any public transport system.

The Daily Realities and Challenges

The operational realities of the minibus taxi industry are often stark. With an estimated 200,000 mini- and midi-buses on the roads (the exact number remains elusive due to the informal nature of much of the industry), they are the lifeblood of daily commutes. However, this critical role comes with significant challenges. Overcrowded minibuses, particularly those travelling from distant townships, have long been identified as 'Petri dishes' for the rapid spread of highly infectious diseases like tuberculosis, a problem exacerbated during the Covid-19 pandemic. The industry's informal structure means that drivers often face precarious working conditions, with few, if any, statutory worker rights observed. A common arrangement sees drivers expected to meet a defined daily target amount for a specific route, with anything over that sum constituting their wage. This system, while incentivising hard work, also regrettably encourages overloading, speeding, and a general impatience on the roads, contributing to safety concerns.

Commuters, too, face a cruel dilemma. During the Covid-19 pandemic, calls by the South African National Taxi Council (Santaco) for members to defy regulations restricting passenger numbers highlighted the impossible choices faced by hundreds of thousands of workers. As one commuter from Soweto noted, the choice was between risking infection in a full taxi or losing one's job due to lateness. This 'unfree-freedom' exposes the underlying cruelty of the capitalist 'free' labour market, where individuals, 'freed' from independent access to livelihood, are compelled to make choices that jeopardise their well-being. Complaints from the public often focus on driver behaviour, long queues, the sometimes intimidating presence of sjambok-wielding marshals at taxi ranks, erratic driving, and chronic violence within the sector. Furthermore, the cost of commutes for impoverished households can be astronomical, often consuming between 30% and 40% of household incomes, a factor contributing to the epidemic of hypertension, a major comorbidity for Covid-19 infections.

The industry itself is a complex ecosystem, comprising hand-to-mouth owner-drivers alongside relatively wealthy fleet-owners, some of whom are reputedly politicians or even members of the police force. The control of routes and taxi ranks can, at times, literally be enforced through the barrel of a gun, painting a picture of a sector that, despite its vital function, struggles with internal strife and external pressures, including daily harassment from authorities and the constant risk of vehicles being impounded.

Government Interventions and the Path Forward

Since the advent of democracy in 1994, several significant steps have been taken by the South African government to address the complexities of the taxi industry. In the late 1990s, then-Minister of Transport Dullah Omar initiated a process aimed at fostering a unified, elected leadership within the sector, creating a formal interlocutor for government engagement. This led to the formation of Santaco, which continues to receive substantial government funding and even occupies office space at the Department of Transport's Pretoria headquarters. However, the diverse and often fragmented nature of the industry has also seen the emergence of a rival national formation, the National Taxi Alliance, with which the government must also engage.

Which race dominates the taxi industry in South Africa?
s that, the taxi industry in South Africa is dominated by the African race.Figure 1: Ethnic Gro pFigure 1 accurately indicates the dominance of the African race into the Mank eng taxi business. One of the completely black-owned industries remains the minibus-taxi industry. Al

A key government initiative has been the Taxi Recapitalisation Programme. Initially, this programme was ambitious, based on the somewhat flawed assumption of South Africa having 'two economies' – a well-functioning first and a lagging second. The idea was that the 'second' economy needed 'one-off ladders into modernisation', such as a new taxi fleet. However, the reality is that the informal and underdeveloped aspects of the economy are often products of the very way modernisation has been driven, making areas like Alexandra and Sandton, Soweto and Johannesburg, co-dependent and inextricably linked.

A more realistic taxi recapitalisation process has evolved over the years, visibly contributing to a generally safer fleet of taxis on the roads. This includes a scrapping allowance for the retirement of old, unroadworthy vehicles, which theoretically serves as a down-payment for a new vehicle compliant with modern safety regulations. Yet, meeting the monthly instalment payments on these new vehicles remains a significant challenge. The Covid-19 lockdowns and subsequent passenger restrictions drastically squeezed the ability of operators to meet these payments, with Santaco estimating that a staggering 40% of vehicles faced repossession by mid-2020.

The Subsidy Debate and Urban Planning

The call for public subsidies for the taxi industry is understandable within this context, especially given that private bus operators and Metrorail services receive public funding. Before the pandemic, taxis transported an estimated 66% of public passenger trips daily, dwarfing the 21% carried by buses and the 13% by Metrorail. The industry also frequently points to costly government commitments like the Gautrain, a public-private partnership that, despite bypassing townships, costs the Gauteng government over R1 billion annually in a 'ridership guarantee' while carrying a fraction of the passengers transported by taxis.

However, directly subsidising the taxi industry presents unique challenges. Taxis do not operate scheduled services, and verifying specific passenger numbers per route and local association is notoriously difficult. A 'helicopter drop' of monthly cash could exacerbate the chronic and sometimes violent rivalries within the sector. A more pragmatic approach might involve finding ways to provide public subsidies into the financing of taxis, rather than direct operational subsidies.

Beyond subsidies, the systemic underpinnings of the crisis in South African public transport lie in the perpetuation, and even aggravation by RDP (Reconstruction and Development Programme) housing developments, of apartheid urban spatial settlement patterns. The average public transport trip in Tshwane, for instance, is 25.4km, significantly longer than in London (8.6km) or Moscow (7.7km). These vast distances make the economic sustainability of any form of public transport extremely challenging. The example of the PUTCO bus depot, where a huge fleet of buses idles between morning and evening rush hours because they can only make a single one-way trip in each peak period, powerfully illustrates this issue.

The challenge, therefore, is not solely about mobility; it is critically about the accessibility of jobs and other facilities. This necessitates a fundamental shift: bringing jobs closer to where people live and providing affordable housing closer to where jobs and facilities are located. Much-delayed land reform must encompass urban transformation to address the racialised social reproduction of poverty, inequality, and unemployment that has persisted since the 19th century. The Covid-19 impact on working-class mobility is a tragic symptom of this unresolved reality.

Taxation and the Industry's Financial Footprint

The South African taxi industry's financial contribution to the national fiscus has long been a point of scrutiny. While often perceived as underpaying its share, the reality is more nuanced. In 2021, the industry collectively paid only R5 million in annual Corporate Income Tax (CIT). This figure, while seemingly low for such a vast sector, reflects a complex reality tied to the industry's informal structure, the prevalence of individual owner-drivers, and the unique operational models in place. Understanding the full scope of its economic footprint requires looking beyond just corporate tax, considering the numerous informal transactions and the direct impact on millions of livelihoods.

Public Transport Passenger Trips (Pre-COVID-19 Estimates)
Mode of TransportPercentage of Daily Passenger Trips
Minibus Taxis66%
Private Bus Operators21%
Metrorail13%
Average Public Transport Trip Distances (Early 2000s)
CityAverage Trip Distance
London8.6 km
Moscow7.7 km
Tshwane (South Africa)25.4 km

Frequently Asked Questions (FAQs)

What is the origin of South Africa's minibus taxi industry?

The industry was established by black entrepreneurs from the late 1970s onwards, largely to fill a critical gap in public transport for the black community, a need that was not met by the apartheid state or corporate South Africa.

What is the literature review of taxi industry in South Africa?
The literature review is in five parts. Sections 2.1 and 2.2 draw on existing literature that describes the current taxi industry and its historical evolution in South Africa. Section 2.3 identifies different ways of analysing the taxi industry, while section 2.4 considers the literature on the state’s role.

Why are minibus taxis so vital in South Africa?

Minibus taxis are the primary mode of public transport for millions of South Africans, particularly those living in townships, connecting them to jobs, education, and essential services. They carry an estimated 66% of daily public passenger trips.

What challenges does the South African taxi industry face?

The industry faces challenges including overcrowding, safety concerns, violence over routes, precarious working conditions for drivers, high costs for commuters, and a complex relationship with government regulation and potential subsidies.

How has the South African government tried to regulate or support the industry?

Post-apartheid, the government established bodies like Santaco to engage with the industry and implemented the Taxi Recapitalisation Programme to modernise the fleet and improve safety. Discussions around subsidies are ongoing.

Is the South African taxi industry subsidised?

Unlike private bus operators and Metrorail, the minibus taxi industry does not receive direct operational subsidies. There are ongoing debates and proposals for how subsidies might be implemented, possibly through financing support for vehicles.

What is 'taxi recapitalisation'?

Taxi recapitalisation is a government initiative aimed at replacing older, unroadworthy taxis with newer, safer vehicles. It includes a scrapping allowance for old vehicles to help operators purchase new ones that comply with safety regulations.

Why are commute distances so long in South Africa?

Long commute distances are a direct legacy of apartheid spatial planning, which geographically separated black communities into distant townships from economic centres. This creates significant challenges for public transport sustainability.

In conclusion, the minibus taxi industry in South Africa is a powerful symbol of a nation's journey. It embodies the enduring spirit of entrepreneurship in the face of adversity, while simultaneously laying bare the deep-seated inequalities and structural challenges that persist. Its future, like much of South Africa's, will depend on finding sustainable solutions that balance economic viability, social equity, and the safety of the millions who rely on its daily pulse.

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