Big changes for taxis in South Africa

The Department of Transport is forging ahead with its overhaul of South Africa’s minibus taxi operations, including the scrapping of over 1,900 vehicles and converting 400 to use alternative fuel.

The department presented its progress on the Taxi Recapitalisation plan to the Portfolio Committee on Transport on Tuesday (20 May).

A key aspect of the plan is fulfilling the mandate of getting illegally converted panel vans (minibus taxis) off South Africa’s roads, as well as modernising the industry through various projects.

These include new measures to open retail markets (for spare parts, service etc) for the taxi industry to participate in, building automated fare collection into the systems, and creating an app-based environment for owners and entrepreneurs in the sector.

Another key development for taxis is Liquid Petroleum Gas (LPG) conversions for fuel, which the department said should lower the cost of fuel for taxis by 35%.

The department’s Taxi Recapitalisation Projects (TRP) aims to get unsafe and unroadworthy taxis off South Africa’s road.

By voluntarily surrendering these taxis to authorities for scrapping, businesses and owners could gain access to an allowance as a deposit to recapitalise a new, compliant taxi vehicle.

However, the voluntary surrender of these taxis lapsed in January 2023, and the department is now impounding any illegally converted Toyota Panel Vans used to transport passengers for reward.

As of May 2025, the department said it had over 2,350 such illegal vans on its records, of which 436 were able to be retrofitted for proper use.

This left 1,916 vans to be considered for scrapping.

Through the TRP, approximately 1,243 were linked to operating licences and qualified for recapitalisation, of which 650 vehicles have been scrapped and owners paid. 593 are in the pipeline.

Approximately 670 vehicles do not qualify for recapitalisation, it said, with a total of 1,260 illegal taxis still to be scrapped overall.

The department stressed that any vehicles that have not been submitted for scrapped can no longer be licenced and are operating illegally on South African roads.

These vehicles will be impounded by law enforcement, it said.

Converting taxis to use alternative fuel

The department said the next phase of the TRP is currently underway with a host of pilot projects that started in the 2024/25 financial year and will continue until 2026/27.

These include:

• Container retail solutions
• Automated fare collection
• Virtual association app
• Alternative fuel through LPG and
• 24 hour service centres

The container retail units have been trialled since 2023, with the latest launching in March 2025.

These retail units allow the taxi industry to use fully-equipped 12m shipping containers to conduct services and retail businesses for the sector.

They’re self-contained retail solutions managed by the taxi associations themselves.

The automated fare collection and virtual association app projects are further measures to help formalise the taxi industry.

This should better integrate them into city networks, while improving driver competency and passenger safety.

One of the key projects, which has also been floated for wider use in South Africa, is a conversion project to allow taxis to use LPG as fuel.

The department said that LPG is the most viable alternative fuel as it is more accessible and effective than compressed natural gas (CNG).

It is also easier for taxis to use because of the ease of conversion for a minibus taxi with a conversion kit.

This would give taxis a stable and existing fuel source, with savings to operators of between 30% and 35%, it said, while also benefiting the environment.

Operators would run cleaner engines with longer lifespans and maintenance, with dual systems suggested for longer range.

An added benefit is that formal pumps for LPG already exist at specific forecourts, while other measures, such as mounted portable units, could be used in more remote areas.

Currently, only seven taxis have been coverted as part of a pilot project for LPG use, but the department said it is developing a national rollout model with the plan to install 400 conversion kits.