Major Overhaul for South Africa’s Taxis: Over 1,900 Vehicles to Be Scrapped, 400 Going Green

South Africa’s Department of Transport is pressing ahead with a major overhaul of the minibus taxi industry through its Taxi Recapitalisation Programme (TRP), which aims to modernise the sector, improve commuter safety, and lower operating costs.

As of May 2025, the department confirmed that over 1,900 illegally converted panel vans will be scrapped, and 400 taxis will be converted to run on Liquid Petroleum Gas (LPG) as part of its push toward cleaner, cheaper transport solutions.

Crackdown on Illegal Panel Vans

One of the most pressing issues the department is addressing is the continued use of illegally converted Toyota panel vans to transport passengers. These vehicles, which do not meet roadworthy or safety standards, are being impounded.

The department revealed that over 2,350 such vehicles are on record, with only 436 eligible for legal retrofitting. This leaves 1,916 vans set to be scrapped, as they cannot legally operate or obtain new licenses.

So far:

• 650 taxis have been scrapped and compensated.

• 593 are in the pipeline for scrapping and payout.

• 670 taxis do not qualify for recapitalisation at all.

Any vehicles not submitted for scrapping can no longer be licensed and will be impounded if found operating, officials warned.

Cleaner, Cheaper Fuel for Taxis

As part of the next phase of the Taxi Recapitalisation Project, the department is piloting LPG-powered taxis. LPG is being prioritised over compressed natural gas (CNG) due to:

• Easier conversions using existing kits,

• Reduced fuel costs by up to 35%,

• Lower maintenance costs and longer engine life,

• Immediate environmental benefits from cleaner emissions.

Only seven taxis have been converted so far under the pilot project, but plans are in motion to install 400 LPG conversion kits by 2027.

LPG pumps already exist at certain fuel stations, with portable LPG units being considered for remote areas.

New Services and Digital Solutions for the Taxi Industry

The recapitalisation project goes beyond vehicles. It’s also about creating a more formalised and sustainable taxi industry. The department is rolling out:

• Container-based retail units for taxi businesses,

• Automated fare collection systems, and

• A Virtual Association App to digitise operations.

The container units, launched as recently as March 2025, allow taxi associations to run service and retail businesses out of 12m shipping containers equipped with necessary tools and infrastructure.

These new systems aim to bring the taxi industry in line with city transport networks and improve both driver performance and passenger safety.

What’s Next for South Africa’s Taxis?

The department has confirmed that these changes are just the beginning. The TRP is ongoing, with further development expected through to the 2026/27 financial year.

If successful, this initiative could not only make South Africa’s taxi industry more efficient and environmentally friendly but also create new business opportunities for owners and associations.

{Source: BusinessTech}

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