jmpd impound taxis midrand johannesburg

Image credit: Twitter/@AsktheChiefJMPD/

Taxi Recapitalisation Programme: What you need to know about this plan

Out with the old, and in with the new.

jmpd impound taxis midrand johannesburg

Image credit: Twitter/@AsktheChiefJMPD/

The Department of Transport has been approved by the government, to officially launch the Taxi Recapitalisation Programme; which is set to regulate the taxi industry and enforce strategies for the industry to recapitalise itself.

What is the Taxi Recapitalisation Programme?

The programme is rooted in the recommendations of the National Taxi Task Team, which has the strategic objectives to offset the economic boost in the industry. The taxi industry will be regulated by the government and accept economic aid and interventions.

What will the programme entail?

The Taxi Recapitalisation Programme will facilitate that safety regulations are met and that all vehicles are road-worthy. Furthermore, the government will give a scrapping allowance, this capital subsidy will only apply to those who surrender their vehicles to be validated and succeed in roadworthy regulations.

The government has decided to increase the taxi scrapping allowance from R91 100 to R124 000 per scrapped old taxi.

The department is resuming the scrapping of old taxi’s and scrapping sites will be allocated in each province. The taxi industry will directly benefit from this, as there will be a competitive bidding process for the operational management of the scrapping process facilitated by Anthus Service 84.

Taxi Recapitalisation Programme: What will the process be?

A new business will be developed for the administration of this project. The taxi industry will own 60% of this joint entity with Anthus Service 84, and all the proceeds coming from this project will contribute to the Taxi Development Trust. The Department of Transport is undergoing negotiations with the South African National Taxi Council (Santaco), to ensure that every operator in the industry gets a piece of the pie.

Applications for the scrapping of old taxi vehicles are incoming, and the department has successfully processed 1 464 applications. The process begins with the scrapping of 1 000 vehicles that have been approved, and more vehicles will be processed as the applications continue to come in.

Taxi Recapitalisation Programme: Regulating the taxi industry

The efforts from the government to regulate and uplift the taxi industry will aid with the industry to recapitalise itself.

“The Department of Transport intends to use the Revised Taxi Recapitalisation Programme to unify the Taxi Industry by introducing collaborative ownership and operating models, using structures such as co-operatives and corporatisation.

Collaborative minibus taxi industry ownership and operating models will eliminate existing fierce competition amongst drivers, and encourage responsible driver behaviour and passenger safety.”

Department of Transport