Question NW3312 to the Minister of Transport

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09 November 2023 - NW3312

Profile picture: Nolutshungu, Ms N

Nolutshungu, Ms N to ask the Minister of Transport

(a) How far is the process of formalising and/or providing subsidies for the taxi industry and (b) what are the relevant details of the time frame to introduce the specified subsidy?


1. One of the key problems identified in the current public transport system in South Africa, which is being attended to, is the lack of integration. This is manifested in the current subsidy regime that is still mode specific i.e. rail and bus. Recently, great emphasis has been sought to introduce subsidies for the minibus-taxi operators. Unfortunately, the mode linked operations and subsidy approach prevents the planning for and implementation of efficient services to commuters

2. As a result, the Department is developing a public transport subsidy policy that will locate the subsidisation of minibus taxi users within the wider, multi-modal subsidy framework as part of the public transport funding reforms. The draft subsidy policy proposes a move away from mode specific subsidisation to a position where a subsidised network will be serviced by a combination of modes to minimise the cost of transport. Integrated transport plans will be used to design the most efficient public transport systems irrespective of modes. There are a number of different subsidy models being considered and explored that includes the minibus taxi industry based on applicable integrated transport plans.

3. The draft public transport subsidy policy is being processed for submission to Cabinet for consideration and approval for a public consultation process. Only when the final policy is approved by Cabinet will it be implemented.

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