Taxi industry update: Barbara Creecy pushes for easier loan terms

South Africa’s struggling taxi industry could soon receive a financial lifeline, as Transport Minister Barbara Creecy confirms efforts are underway to negotiate more flexible vehicle loan terms for operators.

Speaking on Thursday, Creecy said her department has begun discussions with major banks and Toyota, urging them to offer lower repayment options. The goal is to reduce the financial pressure that often drives violent disputes over routes within the industry.

Many taxi owners, she explained, are burdened with monthly loan repayments of up to R28,000, which is significantly higher than what they typically earn on a standard route.

“Operators might bring in around R15,000 to R16,000 per month, depending on the route. But when you’re facing a R28,000 repayment, something has to give. That’s when people start looking at taking over more profitable routes, sometimes through illegal means,” she said.

To make up the shortfall, some drivers have taken on additional roles, such as transporting schoolchildren. While Creecy stressed that unlawful conduct cannot be justified, she said the department is actively working on ways to reduce the risk involved in these loans.

“I’m not saying financial pressure excuses irregular practices. It doesn’t. But we are committed to exploring how we can make these loans less risky,” she said.

The industry has faced a spike in violence in recent months. Incidents have occurred in Gauteng, Mpumalanga and the Western Cape, including shootings, the torching of buses, and harassment of private motorists who offer lifts to hitchhikers. In one of the more serious incidents, four people were killed and three others wounded in a shooting at a taxi rank in Mfuleni.

Creecy also condemned the use of vehicles illegally branded as “highway patrollers,” saying only the police and authorised provincial or municipal safety agencies are permitted to patrol roads and stop vehicles.

She warned that the government cannot act as a constant overseer for an industry that is unwilling to regulate itself. While her department continues to engage with national taxi associations, Creecy said the onus is on the industry to ensure that competition remains within legal and economic boundaries.

“You cannot expect the Minister of Transport or the Minister of Safety to serve as nannies for the industry,” she said. “Yes, there will be competition for routes, for passengers, and between associations, but that competition must stay within the rules of the formal economy.”

Progress on Rail Services

On a more positive note, Creecy reported major progress in restoring South Africa’s commuter rail services. Out of 40 key train lines, 35 are now back in operation, including the long-delayed Cape Town to Khayelitsha route, which was completed two months ago.

That particular project proved challenging due to informal settlements built on the tracks, requiring the relocation of residents before construction could continue.

With most lines now running, the department is shifting its focus to modernising the country’s outdated manual signalling system. Creecy said R12 billion has been allocated to the project, which will allow trains to run more frequently and safely.

“At the moment, trains must contact a control centre for clearance at intersections. Our short-term aim is to increase frequency to three or four trains per hour. By 2030, we hope to have peak-hour trains running every five minutes, depending on demand,” she said.

Creecy added that a reliable and modern rail system is essential to easing traffic congestion and offering commuters a faster, safer and more affordable alternative to road travel.