Question NW1806 to the Minister of Transport

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03 September 2020 - NW1806

Profile picture: Nolutshungu, Ms N

Nolutshungu, Ms N to ask the Minister of Transport

(a) Who are the shareholders of Taxi Recapitalisation South Africa, which was established by a certain company (name furnished) with the aid of his department, (b) what profit amount does the specified entity make by scrapping one taxi and (c) what number of taxis do they scrap in each year?


a) Taxi Recapitalisation South Africa (TRSA) has been established on a collaborative business model between the Mini and Midi-Bus Taxi Industry (MMTI) with 60% ownership and the Contractor as technical partner with 40% ownership. The appointed Contractor is Anthus Services 84 (Pty) Ltd.

b) In terms of the Revised Taxi Recapitalisation Programme, the Contractor is required to verify the extent of illegal operations, improve the sustainability of the MMTI through leveraging commercial opportunities in the value chain and investigating the feasibility of introducing an age limit for mini and midi-bus taxis, in addition to the scrapping of old taxi vehicles and paying scrapping allowances to taxi operators. The Contractor’s contract value is based on the implementation of all therequirements mentioned above and not only on the scrapping of taxis only.

c) The budget for scrapping allowances provided in the Medium Term Expenditure Frameworks provides for the scrapping of 3693 vehicles annually. The actual number of vehicles scrapped annually is dependent on the number of qualifying applications received from the MMTI.Scrapping of old vehicles is also demand drivenand therefore the total number of vehicles scrapped each year is dependent on the operators bringing their vehicles for scrapping.

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