Minibus taxi operators exploited, says Transport Minister
Government is calling on financial institutions to “give taxi operators a better deal”, Transport Minister Joe Maswanganyi said on Monday.
Speaking at the Southern African Transport Conference in Pretoria, he noted that the minibus taxi industry was correct in saying it was being exploited when purchasing new vehicles.
Taxi operators had been threatening to again block off major highways in Gauteng in protest against finance deals which could demand an up to 28% interest rate.
Maswanganyi said this rate meant it was cheaper to buy a Mercedes-Benz E-Class than a R400 000-plus taxi.
“When the taxi is finally paid off, it is dead. It means operators are perpetually indebted. Why not give operators prime, or fleet buyers prime-minus rates?”
Maswanganyi said minibus taxi operators transport 68% of commuters in South Africa, while receiving no government subsidy.
The industry generated R120-billion in fares a year, while also spending R39-billion on fuel, R7-billion on new vehicles and R2.4-billion on insurance.
Mwaswanganyi said government was looking at introducing subsidies to the taxi industry.
He said government would also meet with the minibus taxi industry this week to discuss the continuation of the taxi recapitalisation (recap) programme.
The programme, implemented in the late 1990s, assists taxi operators in purchasing new, safer, legal vehicles, by receiving a scrapping allowance for their old vehicles.
Maswanganyi said the taxi recap programme was scheduled to come to an end next year.
“We are meeting with the leadership of the taxi industry to discuss renewing the programme.”
Mwaswanganyi averred that football and the minibus taxi industry were the only industries that “have always empowered black people in South Africa” and deserved government’s support.
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