WATCH | Taxi industry calls for government subsidy in 2025 budget

The SA National Taxi Council (Santaco) is calling for finance minister Enoch Godongwana to include the industry in the 2025 budget.

With the budget speech set to take place on Wednesday, Santaco secretary-general Daki Qumbu believes operators deserve a subsidy.

The industry receives 1% of public funding through the government's taxi recapitalisation programme, which aims to improve safety in the industry.

In an interview with Newzroom Afrika, Qumbu argued that while the industry is profitable, it's not enough to sustain it, specially after the Covid-19 pandemic.

“The industry is making money, but what kind of money is that? Is it enough for a living for people who depend on the taxi industry? We cater to the poorest of the poor.  We’re speaking of a bare minimum, and people are struggling. Since Covid-19, it has been very difficult for the taxi industry to recover,” he said.

“There's no money. People are no longer able to buy vehicles or keep up with instalments. Many families are suffering, and we believe it is the right of the taxi industry to receive the subsidy, like other modes of transport. We are hopeful the minister will  include the taxi industry in the public subsidy regime in his budget speech.”

The taxi industry is estimated to be worth more than R90bn per annum and employs around 300,000 people directly and indirectly.

In 2020 former transport minister Fikile Mbalula flighted a proposal to introduce a subsidy for the taxi industry by April 2021, saying the specifics could be debated at a lekgotla with all roleplayers. However, this did not materialise.

In May 2022 Mbalula told the Santaco elective conference that democratic practices within the industry, including an end to violent infighting, were a non-negotiable criteria for government financing.

"Participation in any commercial venture or undertaking any economic activity using public funds is subject to a condition that the benefits from such investments must accrue to every operator irrespective of affiliation," he said.

Operators in the industry have rejected previous attempts to regulate the sector.

The government’s R1.14bn Covid-19 relief fund offer for it were rejected by taxi operators, Business Day reported. Among the conditions attached to the aid were for taxi operations to be registered as businesses and to have bank accounts into which the relief allowances would be paid, and that the businesses should be registered for income tax and other taxes related to running a business.

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