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Friday, April 10, 2026

Why the South African state should not subsidise minibus taxi owners - The Conversation

Millions of South Africans rely on minibus taxis to get around. Without these vehicles, people wouldn’t be able to get to work, school or simply visit friends and family. Data from Statistics South Africa’s Quarterly Labour Force surveys suggest that there are around 250,000 minibus taxi drivers in the country; there are likely about the same number of minibus taxis.

Statistics South Africa’s 2020 National Household Travel Survey, meanwhile, indicates that 60% of households report taxis as their main mode of transport and the 2014/5 Living Conditions Survey showed that 79% of households reported spending money on taxi fares in the last year. The 2020 Travel Survey also shows that households’ most common complaint about public transport centred on the cost of taxis: they were too expensive. As an example, someone living in Khayelitsha, and working an eight-hour day at the minimum wage in central Cape Town, 27km away, would earn R184 a day and pay R48 for a return trip on a taxi – 26% of their gross earnings.

Rising petrol costs, because of the war in Ukraine and trade disruptions, have amplified calls by taxi associations, the Competition Commission and others for the state to increase subsidies to minibus taxis. The only direct subsidies paid to minibus taxi owners is the scrapping allowance, which they receive if they scrap old taxis. Taxi operators complain that this is unfair, and that taxis should be subsidised like buses and trains.

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