R3.5 billion needed to mitigate effects of lockdown on taxi industry

The South African National Taxi Council (Santaco) has estimated that around R3.5 billion will be needed to mitigate the effects of lockdown on the industry.

The taxi federation has launched the industry’s coronavirus relief initiative in Johannesburg to provide relief funding for its members. The fund will be administered by an audit firm.

Santaco has appealed to both the private sector and government to contribute.

Launch of the Taxi Industry Relief Fund underway in Johanessburg. SkX has been appointed fund managers of the Relief Fund. pic.twitter.com/48XznkId8B

— SANTACO (@SA_Taxis) April 7, 2020

Santaco has made an appeal to food retailers, car dealerships, banks and other industry players to contribute to the fund.

Santaco president, Phillip Taaibosch, says the restrictions placed on the industry due to the spread of the coronavirus has forced them to take drastic measures to uplift taxi operators.

“The launch of the fund is predicated by the fact that the taxi industry which is not subsidised has been facing several challenges since the start of the lockdown. We recognize that our members are losing income and the livelihood is severely compromised. We have taken this proactive step to establish a fund that will caution a blow to our members. At the same time, they continue to fight the virus.”

Taaibosch says the industry needs billions to keep it going. “We are continuing with the figure of R3.5 billion. When it comes to the claimants they will differ from one province to the other, but we have put brackets when it comes to the drivers. We will ensure that the driver gets plus-minus R250 a day. Then it will go to the owners then to the office staff.”

The audit firm’s Lindani Dlamini says they have been tasked to ensure the distribution of funds is credible and fair.

“Our role in this process would be that of fund managers to ensure that whatever funds are received into the fund are properly accounted for. They are appropriate and there are controls, governing instructors that have been put in place  to make sure that those funds end up in the hands of the intended recipients.”

Taxi operators have welcomed the initiative.