MyCiTi bus services loses around R400 million annually

An ANC councillor revealed the MyCiTi service is currently operating at loss of R406 million.

A pedestrian passes by the line of MyCiTi Buses parked as part of the protest in the red designated bus lane. Picture: Thomas Holder/EWN

CAPE TOWN - The City of Cape Town's MyCiti bus service loses about R400 million annually.

This emerged during a debate on the municipality's budget for the 2016/17 financial year.

The R41 billion budget was adopted despite a last-minute walkout by the African National Congress (ANC) caucus which objected to some amendments.

During the council meeting, ANC councillor Peter Gabriel revealed the MyCiTi service is currently operating at loss of R406 million.

He says a further R516 million losses has been budgeted for next year.

"I can tell you now that residents had to foot the bill for the loss of R28 million for Crystal Palace soccer event (Cape Town Cup) last year. So they need your money to pay for the loses."

Deputy Mayor Ian Nielson says the municipality subsidises the services, just like other cities across the world.

"We do want to work it to a lower percentage of subsidy but that's going to take time. You don't start a new public transport system and immediately get it to be operating at a very low subsidy level."

He adds national government also assists with funding the service.