Economy

SA taxi relief defended by SANTACO  

Date: Apr 25, 2025

The South African (SA) National Taxi Council (SANTACO) has defended the government’s decision to channel over $21 million from the country’s COVID-19 Relief Fund into the minibus taxi industry.

This move has drawn criticism from opposition party Build One SA (BOSA).

This once-off payment, included in SA’s 2025/26 national budget, was questioned in Parliament by BOSA leader Mmusi Maimane. In response, Transport Minister Barbara Creecy clarified that cabinet had approved the ex-gratia payout to support taxi operators who were severely impacted by lockdown restrictions during the COVID-19 pandemic in 2021. However, she acknowledged that many eligible operators have yet to access the funds.

SANTACO’s National Spokesperson, Mmatshikhidi Rebecca Phala, attributed the delays to a backlog in issuing operating licences, a mandatory requirement for accessing the relief.

“There’s a serious backlog when it comes to issuing operating licences in the taxi sector. Many operators didn’t have their licences when the funding process began, which meant they couldn’t apply, even though they qualified in every other respect,” Phala explained.

She stressed that the funds are not being distributed indiscriminately. “These are not random payouts. Operators who’ve been approved are those who met the criteria and were badly affected during the height of COVID-19 restrictions,” she said.

“The industry was hit just as hard as others. That’s why we’re puzzled by the criticism. It’s not like the money is being handed out to just anyone, it’s going to those who genuinely deserve it.”
 

--ChannelAfrica--

 

 

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