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Taxi industry formalisation tackled at national lekgotla

Officials say the formalisation of the sector will not just benefit operators but also workers who'll get access to social support like the Unemployment Insurance Fund and training funded by the Skills Development Levy.

Commuters wait to enter their taxi at Bree taxi rank in Johannesburg. Picture: AFP

Officials say the formalisation of the sector will not just benefit operators but also workers who'll get access to social support like the Unemployment Insurance Fund and training funded by the Skills Development Levy.

CAPE TOWN - The formalisation of the taxi industry is on the agenda at a national taxi lekgotla on Friday.

The three-day event got under way in Joburg on Thursday with an address by President Cyril Ramaphosa.

It marks the end of Transport Month and aims to achieve consensus on a blueprint for the industry's future.

There are three themes on the agenda today - formalisation, regulation and control and economic empowerment.

Officials say the formalisation of the sector will not just benefit operators but also workers who'll get access to social support like the Unemployment Insurance Fund and training funded by the Skills Development Levy.

Government has stressed it's determined to support business growth in the taxi industry, especially initiatives that empower previously disadvantaged individuals like women.

Under the industry regulation theme, officials are discussing how the prevalence of illegal operators affects the sector and government.

Illegal operators shrink the revenue base by complicating the supply side of business through uncontrolled entry into the market.

Taxi leaders also believe they provide perverse incentive for conflict and aggravate the industry safety profile, because they are more prone to employing illegal and dangerous tactics to get customers and maximise profits.

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