Funding safety or risking lives? The cost of unused and redirected taxi recapitalisation funds

Dr Siyabulela Christopher Fobosi is a Senior Researcher, UNESCO ‘Oliver Tambo’ Chair of Human Rights, Faculty of Law, University of Fort Hare. Picture: Supplied

Dr Siyabulela Christopher Fobosi is a Senior Researcher, UNESCO ‘Oliver Tambo’ Chair of Human Rights, Faculty of Law, University of Fort Hare. Picture: Supplied

Published 9h ago

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SIYABULELA CHRISTOPHER FOBOSI

The diversion of nearly R19 million from South Africa’s Taxi Recapitalisation Programme (TRP) to fund President Cyril Ramaphosa’s inauguration has reignited discussions about the government’s inability to utilise funds designated for critical public safety initiatives effectively.

This revelation raises pressing concerns about systemic inefficiencies within the Department of Transport, resulting in the continued endangerment of drivers and commuters who depend on minibus taxis daily.

The TRP, launched in 2006, was conceived as a transformative initiative aimed at modernising South Africa’s minibus taxi fleet by phasing out old, unsafe vehicles. The programme’s overarching goal was to foster a safer and more reliable public transport system.

However, nearly two decades later, the programme’s implementation has been marred by inefficiencies, inconsistent execution, and a lack of measurable progress. This failure not only undermines public safety but perpetuates the precarious working and living conditions of taxi drivers and operators.

As my doctoral research, The Impact of Taxi Recapitalisation Programme on Precarious Working Conditions within the Minibus Taxi Industry in Johannesburg, and subsequent peer-reviewed articles reveal, the TRP has struggled to achieve its stated objectives. Despite the noble intentions of the programme, structural and operational flaws have rendered its progress insufficient to address the industry's challenges.

The minibus taxi industry is pivotal in South Africa’s public transport sector. Accounting for approximately 68% of all commuter trips, the industry serves as the primary mode of transport for millions of South Africans, particularly in low-income and rural communities. Despite its importance, the sector has long been plagued by informality, poor regulation, and substandard safety standards.

When minibus taxis cause accidents, they are attributed to the ageing and unroadworthy state of the vehicles. The unsafe conditions not only jeopardise commuter safety but also place an immense psychological and financial strain on taxi drivers, who often work under precarious circumstances. The TRP was designed to address these issues by incentivising taxi owners to replace old vehicles with newer, safer models. However, as demonstrated by my research, the programme has consistently fallen short of its goals.

One of the most significant barriers to the success of the Taxi Recapitalisation Programme (TRP) lies in the stringent and often unattainable scrapping requirements imposed on taxi operators. To qualify, operators must meet specific criteria, including providing comprehensive documentation such as valid vehicle registrations and roadworthy certificates. For many operators, particularly in rural or informal sectors, these administrative hurdles are insurmountable. Without access to the required paperwork, a large portion of the industry remains excluded, undermining the programme’s reach and impact.

Another key challenge is the Department of Transport’s (DoT) restrictive criterion limiting scrapping eligibility to vehicles purchased in 2006 or earlier. While this policy aimed to prioritise the oldest and most unsafe vehicles, it inadvertently excluded slightly newer models, which, despite their age, often remain unsafe. This exclusion has trapped many operators in a cycle of informality and financial precarity. Unable to access scrapping benefits or upgrade their fleets, operators can continue running unroadworthy vehicles, perpetuating hazardous conditions for drivers and passengers alike.

Compounding these issues is the lack of meaningful stakeholder engagement. Taxi associations, operators, and drivers frequently feel alienated from the decision-making processes affecting their industry. This disconnect has fostered scepticism about the TRP’s objectives and benefits, further impeding its adoption and effectiveness.

Collectively, these challenges have created what I call “transformation or formalisation traps”, where systemic flaws in the TRP sustain the precarious conditions it seeks to address. Without addressing these obstacles, the TRP risks reinforcing informality within the taxi industry, perpetuating unsafe transport practices, and failing to deliver on its promise of industry transformation. Breaking these traps requires comprehensive reform that aligns programme criteria with the economic realities of operators and incorporates meaningful dialogue with industry stakeholders.

The decision to redirect R19 million from the TRP budget highlights a broader issue of mismanagement and misplaced priorities within public administration. This redirection not only delays the programme’s objectives but also exacerbates existing safety risks within the minibus taxi industry. Unroadworthy taxis continue to dominate South African roads, increasing the likelihood of accidents that result in injury or loss of life.

For commuters who rely on minibus taxis daily, the stakes are life-threatening. According to the Road Traffic Management Corporation (RTMC), taxi-related accidents account for a significant proportion of road fatalities annually. Minibus taxis, particularly models like the Toyota Quantum and Hiace, are among the most frequently involved in fatal crashes. This is often attributed to their extensive road presence, high mileage, and driver fatigue.

These vehicles account for a notable proportion of road traffic incidents, underscoring the need for stricter enforcement of road safety measures and better regulation of the taxi industry. The persistence of unsafe vehicles undermines the core purpose of the TRP, leaving millions of South Africans vulnerable.

The inefficiency of the TRP also has broader economic implications. The minibus taxi industry significantly contributes to South Africa’s informal economy, providing livelihoods for thousands of drivers, operators, and ancillary workers. The lack of meaningful progress in recapitalising the fleet stifles the potential for economic formalisation and transformation within the sector. This stagnation perpetuates precarious working conditions, hindering efforts to improve wages, benefits, and job security for industry workers.

The mismanagement of TRP funds erodes public trust in the government’s ability to prioritise and address critical issues. South Africans who rely on public transport feel increasingly disillusioned by the lack of tangible improvements. At the same time, stakeholders in the taxi industry perceive the redirection of funds as a betrayal of their trust and cooperation.

To ensure the effectiveness of the Taxi Recapitalisation Programme (TRP), several key measures must be implemented to address existing barriers. First, the scrapping criteria must be revised to include vehicles based on their condition rather than their year of purchase.

This adjustment would make the programme more inclusive and help phase out all unsafe vehicles, regardless of when they were bought, addressing inequities and enhancing road safety. Equally important is the need to strengthen stakeholder engagement.

Regular forums for dialogue involving government, taxi associations, operators, and drivers should be established. These platforms would provide opportunities to address grievances, solicit feedback, and involve all stakeholders in decision-making processes, fostering trust and cooperation.

Additionally, robust accountability and oversight mechanisms must be implemented. The misuse of TRP funds underscores the urgency of strict monitoring, transparent financial reporting, and independent audits to ensure resources are used effectively, and public trust is restored. Public awareness campaigns are another critical component, as they can educate commuters and operators about the programme's goals and benefits, encouraging participation and support.

Finally, the government must address financial barriers by offering subsidies, low-interest loans, or grants to help operators transition to safer vehicles. Technical support in maintenance and regulatory compliance would further ease this transition and promote a formalised, sustainable taxi industry.

Therefore, the Taxi Recapitalisation Programme is not just a transportation initiative; it is a critical intervention for public safety, economic transformation, and social equity. However, systemic challenges such as administrative barriers, exclusionary criteria, and inadequate stakeholder engagement have hindered its success.

The diversion of R19 million from the TRP underscores the pressing need for accountability and strategic focus on public spending. By addressing these shortcomings with urgency and determination, the government can transform the TRP into a powerful tool for industry reform. Prioritising safety and well-being over political events sends a clear message of commitment to the millions of South Africans who rely on minibus taxis daily.

Recommitting to the TRP’s objectives, revising its framework, and ensuring responsible use of resources can pave the way for a safer, more reliable public transport system. Achieving this transformation is not only a necessity but an obligation to the commuters, drivers, and operators who form the backbone of South Africa’s public transport network.

Dr Siyabulela Christopher Fobosi is a Senior Researcher, UNESCO ‘Oliver Tambo’ Chair of Human Rights, Faculty of Law, University of Fort Hare.

***The views expressed here are not necessarily those of Independent Media or IOL.***

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