Why is it important for taxi operators to care about global issues or events beyond South Africa’s borders when local challenges already dominate our focus?
The answer is simple: “we must care”. Take, for example, the recent tariffs imposed by the United States on exports from South Africa and other countries like China, Botswana, Zimbabwe, and Lesotho. These tariffs indirectly affect taxi operators, too. We must also consider how rising costs from tariffs impact cross-border taxi operations in neighboring countries.
Tariffs create a domino effect across supply chains. For the taxi industry, this means:
- Higher vehicle prices (including imported parts and accessories).
- Reduced affordability due to rising interest rates and loan repayments.
- Increased fares as operators pass these costs to passengers.
These pressures could also force the government to reluctantly raise taxes or prompt the Reserve Bank to hike interest rates, especially if the rand weakens, inflation spikes, or other external and domestic pressures come into play.
It’s a sad reality, but as veterans of the taxi industry, we believe that if things continue to deteriorate under the new global economic order, the taxi industry may cease to exist within the next ten years.
This once-vibrant minibus taxi industry is eroding like soil. One in three operators is heading for bankruptcy.
Let me conclude by saying: I sincerely hope this scenario does not become our reality.
