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European Journal of Applied Sciences – Vol. 10, No. 4

Publication Date: August 25, 2022

DOI:10.14738/aivp.104.12873. Mathu, K. (2022). Driving Sustainability of Minibus Taxi Industry in South Africa. European Journal of Applied Sciences, 10(4). 649-

659.

Services for Science and Education – United Kingdom

Driving Sustainability of Minibus Taxi Industry in South Africa

Kenneth Mathu

ABSTRACT

Background: The minibus taxi is the leading commuter transport mode in South

Africa, with a market share of about 70%. Despite the industry’s positive socio- economic contributions to the country, the management is handicapped by the

industry’s informal nature among other issues. This study explored the

sustainability initiatives for minibus taxi industry in South Africa, as the country

and the rest of the world pursued the net zero emissions target by 2050. Method:

The study was grounded in the theories of sustainable development and change

management, pursued qualitative research methodology and constructivism

research paradigm. Non-probability sampling process was used in selecting the

participants from the minibus taxi industry in North West province, South Africa.

The participants were interviewed and the interviews recorded, transcribed, coded

and analysed for results through content analysis. Results: The outcome

overwhelmingly preferred formalisation of the industry, which would improve

management, commuter safety and reduction of carbon emissions, which would

enhance competitiveness and sustainability. Conclusion: The formalisation of the

minibus taxi industry would streamline its management and facilitate faster taxi

electrification of the taxi fleet, when adoption of electrical vehicles commences in

the country, drastically reducing carbon emissions.

Keywords: Commuters, competitiveness, management challenges, minibus taxi,

sustainability

INTRODUCTION AND BACKGROUND

The Minibus taxi industry is the leading mode of public transport for the low-income group in

South Africa, catering for about 15 million commuters (70%), followed by bus transportation

5.3 million commuters (20%) and rail about 2.2 million commuters (10%) (Gedye, 2020). The

industry was started in the 1950s by black people of South Africa living in townships in the

periphery of urban area, as they were not adequately provided with transportation service by

the government (Madimabe & Makgopa, 2014: 415-421). The industry has grown

tremendously since inception, making management more complex, as indicated in its share of

public commuter transportation. The minibus taxi industry market share has experienced

volatility over the years, as manifested by socio-economic factors and areas of operation

(StatsSA, 2021). The North-West province for instance, has four regions run by different

minibus taxi associations with different rules and regulations. The different centres of power

practised by various minibus taxi associations caused confusion, rather than unifying the

industry. The frustrations experienced included among others violent confrontations between

rival minibus taxi operators (Ngubane, 2016: 1). This is a national phenomenon in the industry

and posed imminent danger for commuters and the business.

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European Journal of Applied Sciences (EJAS) Vol. 10, Issue 4, August-2022

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The founding of the minibus taxi was to alleviate the transportation requirements of low- income individuals from black townships in urban areas, and later included individuals from

rural areas who were predominantly black people (Vegter, 2020: 14). The history of minibus

taxi goes back to 1950s, while rapid growth of the industry can be traced back to 1990s, with

more stringent regulatory requirements introduced from 1994 (Chiloane-Tsoka, 2016). After

the South African democratic dispensation in 1994, the taxi industry became more complex

with increased regulations and formation of the National Taxi Association and a number of

regional organisations (SANTACO, 2020). The industry was characterised by historically

exploitative labour relations between owners and drivers, to maximise profitability at all costs

(Mahlangu, 2002: 33). Despite the industry’s internal squabbles, the Department of Transport

still experienced challenges in subsidising the industry, even though the industry has continued

to champion in socio-economic contributions (DOT, 2017).

The management challenges of the minibus taxi industry were further compounded by the

Coronavirus or COVID -19 pandemic which disrupted global socio-economic activities since

2020 (PWC, 2020). Since early 2020, South Africa like other global nations, introduced stringent

measures to help manage the pandemic, which impacted on all sectors of the economy,

including the taxi industry. The measures undertaken included wearing face masks, social

distancing and regular sanitising. Social distancing required the minibus taxis carrying capacity

reduced by 50% during major part of 2020/2021 period (DOH, 2021). This action, together

with the requirements for total close down for industries in the early 2020, devastated the

minibus taxi industry financially (Magubane, 2020).

The South Africa government’s commitment to pursue net-zero emissions by 2050, required

intensive changes in legislations for greenhouse gas emissions reduction, such as enhancement

in development of renewable sources of energy, setting up targets for heavy emitting industries,

including transport and considerations for introduction of electric vehicles (Planting, 2021).

Thus, the drive towards sustainability is in top gear in the country and has impact on all

industries, including the minibus taxi.

THEORETICAL FRAMEWORK

This study was grounded in theory of sustainable development and change management

theory, in the exploration for the drivers of sustainability in the minibus taxi industry in South

Africa. Sustainable development is defined as “development that meets the needs of the present

without compromising the ability of the future generations to meet their own needs”

(Brundtland, 1987). The theory emanated from United Nations 1987 Brundtland Report on

“Sustainable Development” delivered at the United Nations World Commission on Environment

and Development (UNWCED). In energy perspective, the theory aimed to alleviate the dilemma

of climate change, caused by the increased use of fossil-fuels for energy generation. Hence,

sustainable development provided the choice of “energy with long-term availability in

increasing quantities from sources that are dependable, safe and environmentally friendly”

(Epstein & Buhovac, 2014). Driving sustainability in South Africa’s minibus taxi industry would

require use of clean energy (fuel) among other sustainability initiatives.

Change management “involves process, tools and techniques to manage the people side of

change to achieve the required business outcome (Cummings & Worley, 2015: 589). The change

process incorporates the organisational tools that can be utilised to help individuals make

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Mathu, K. (2022). Driving Sustainability of Minibus Taxi Industry in South Africa. European Journal of Applied Sciences, 10(4). 649-659.

URL: http://dx.doi.org/10.14738/aivp.104.12873

successful personal transitions resulting in the adoption and realisation of change”. The

organisational change required competent managerial skills that are relevant to the changing

environment to enable them to survive the prevailing market pressures (Marsicano, 2019). The

drive towards net-zero emissions in South Africa involved transformation, that is tantamount

to driving sustainability in the minibus taxi industry.

LITERATURE REVIEW

The literature covered included management challenges of the minibus taxi industry,

management concept, public transport and sustainability initiatives for the country and the

industry.

Management Challenges of Minibus Taxi Operations

The commuters transported by the minibus taxis comprised people going to and from work,

students and other general public travellers (SA National Treasury, 2016). The minibus taxi

operations in North West province is the focus of the study, as the province provided sample

for the country. The research conducted by chiloane-Tsoka (2016) indicated that the taxi

operations in North West province is managed through the regional taxi council (RTC) which is

divided into five divisions. The structure of the RTC is composed of associations of minibus taxi

owners/operators. The management of RTC and the associations are operated privately and

are independent, compared to other modes of transport in the province, that are regulated by

the government (Tukwana, 2021). The RTC face various management challenges ranging from

taxi rank facilities management, provincial route sharing and operational issues, such as pricing

variations among others. The minibus taxi fares within the industry are regulated by regional

structures representing both local and long-distance operators and conducted without

consultation or interference by the government (Fobosi, 2019: 313).

According to the National Taxi Task Team Memorandum, the informal nature of the minibus

taxi industry positioned the industry at crossroad with the government, as it had to adhere to

the transport legislations, some of which are unpopular (Barrett, 2003). The status of the

industry is informal and unregulated Fobosi (2019: 2). Most of the minibus taxi owners

preferred to have the industry regulated, to enable them receive subsidies from the

government, to help in competing more efficiently and effectively (SANTACO, 2020). The

different minibus taxi associations in North West province have their own goals and strategies,

that usually differ, culminating into conflicts, which escalate into fights, impacting on business

and the commuters (Tukwana, 2021).

Management concept

The concept of management may be defined as “the process of achieving things with the aim of

achieving goals effectively and efficiently”. The process involves planning, organising, staffing,

directing, coordinating, controlling and technology may be used for strategic intervention

(Cummings & Worley, 2015: 216). In business, management is the coordination and

administration of tasks to achieve a goal. The management of minibus taxi involves the

organising, coordination and controlling administration of the role players, comprising of taxi

operators (taxi owners), taxi drivers, commuters, queue marshals (managing commuters to

board), taxi associations and the government (DOT, 2017).

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European Journal of Applied Sciences (EJAS) Vol. 10, Issue 4, August-2022

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The management of an informal industry as the minibus taxi industry is complex and there are

challenges in coordinating the stakeholders as stated. In addition to the industry’s conventional

management challenges and conflicts of interest between the operators, the Covid-19 pandemic

has manifested other management challenges in the industry, as the government try to enforce

mitigating measures for the pandemic (DOH, 2020).

Public Transport Management in South Africa

The public transport planning and management responsibilities in South Africa are shared

between the three spheres of government - national, provincial and local government (DOT,

2017). These spheres fall under the National Minister of Transport, as stipulated in the National

Land Transport Act No. 5 (NLTA) of 2009. The NLTA includes the land transport functions

under the three spheres of the government in the country, which also incorporated the land

transport responsibilities (DOT, 2009). The DOT (2017) provided the functions of the three

spheres as follows:

National sphere of the government

The national sphere of the government is responsible for formulating national transport

strategy and policy; planning and coordinating national transport; preparing National Land

Transport Strategic Framework (NLTSF); and assigning transport responsibilities to the other

spheres.

Provincial sphere of the government (NLTA No.5 of 2009)

The provincial sphere of the government is responsible for the provincial roles of planning,

coordinating municipalities, policy implementation and preparation of Provincial Land

Transport Framework (PLTF).

Local/Municipality sphere of the government (NLTA No.5 of 2009)

The local government sphere of the government is responsible for the transport plan and policy

for local authorities and municipalities. This also includes preparations of the municipality by- laws and ensuring their implementation.

In 1996, the national Department of Transport established the National Taxi Task Team,

(NTTT) which consists of nine taxi industry representatives (one member from each province),

nine Government representatives representing all three tiers of Government and nine specialist

advisors (Baloyi, 2012: 23). The NTTT was mandated to focus on three key areas in the process

of transforming the taxi industry, which included, regulation and control, formalisation and

training, and economic assistance. All provinces including North West, in consultation with the

provincial taxi industries and communities set about implementing these recommendations. In

North West, a Provincial Regulatory Entity was established by the provincial Department of

Transport and Mahikeng Local Municipality to manage the implementation of the NTTT

recommendations (DOT, 2017).

In North West province, there are minibus taxi vehicles that operate locally with carrying

capacity exceeding 20 commuters and some are twenty-two seaters, that operate on long- distance trips between provinces. Mahikeng which is the provincial capital has eight minibus

taxi associations, about 98 buses covering 297 routes and 971 minibus taxis covering 72 routes

in Mahikeng (Muthige, Machobane & Masela, 2020). However, the minibus taxi industry