ActionSA Slams Transport MEC for Call to Taxi Operators to Apply for Operating Permits Before Purchasing Vehicles
Press Statement by Emma More
ActionSA Member of the Gauteng Legislature
ActionSA slams the recent suggestion made by the Gauteng MEC for Transport, on an interview during the Power FM breakfast show on the 4th of September, urging taxi and e-hailing operators to apply for operating permits before purchasing vehicles.
Whilst we support measures that bring greater order and compliance within the taxi and e-hailing industry, this ill-considered proposal is both impractical and out of touch with the realities faced by operators and commuters alike, demonstrating the MEC’s fundamental misunderstanding of the taxi industry’s operational and financial realities.
This suggestion is impractical and counterproductive:
Inability to Comply: Operators cannot provide full compliance details (such as vehicle specifications and registration numbers) without first purchasing the vehicles. This creates a bureaucratic deadlock, delaying the replacement of ageing, unsafe fleets.
Financing Barriers: Financial institutions typically require proof of vehicle purchase or order before releasing funds. Demanding a permit beforehand disrupts this financing chain, making it harder for operators – many of whom operate on tight margins – to access credit facilities.
Administrative Backlogs: Gauteng already faces severe backlogs in processing operating permits. Adding another pre-purchase requirement will exacerbate delays, leaving operators stranded and commuters underserved.
ActionSA proposes the following practical reforms to achieve the same regulatory goals without paralyzing the industry:
Conditional Permit Approval: Introduce a pre-approval system where operators can secure conditional permits based on route availability and compliance requirements, which are then finalized upon vehicle purchase.
Digitisation of Permit Applications: Streamline and digitise the permit process to cut down waiting periods, reduce corruption opportunities and make compliance more accessible.
Structured Fleet Renewal Programme: Partner with financial institutions to create a public–private fleet renewal fund, providing accessible financing tied to compliance and road safety targets.
Stakeholder Engagement: Work with taxi associations and the South African National Taxi Council (SANTACO) and e-hailing operators to co-develop realistic timelines and transition frameworks.
Instead of adding another layer of red tape, the MEC should focus on streamlining the current permit process, which is already plagued by delays and inefficiencies, by engaging industry stakeholders in an open, transparent manner in order to develop a practical, operator-friendly framework that addresses safety and legality without strangling the industry.
ActionSA Slams Transport MEC for Call to Taxi Operators to Apply for Operating Permits Before Purchasing Vehicles
ActionSA slams the recent suggestion made by the Gauteng MEC for Transport, on an interview during the Power FM breakfast show on the 4th of September, urging taxi and e-hailing operators to apply for operating permits before purchasing vehicles.
Whilst we support measures that bring greater order and compliance within the taxi and e-hailing industry, this ill-considered proposal is both impractical and out of touch with the realities faced by operators and commuters alike, demonstrating the MEC’s fundamental misunderstanding of the taxi industry’s operational and financial realities.
This suggestion is impractical and counterproductive:
ActionSA proposes the following practical reforms to achieve the same regulatory goals without paralyzing the industry:
Instead of adding another layer of red tape, the MEC should focus on streamlining the current permit process, which is already plagued by delays and inefficiencies, by engaging industry stakeholders in an open, transparent manner in order to develop a practical, operator-friendly framework that addresses safety and legality without strangling the industry.