South African President Cyril Ramaphosa has signed the amended National Land Transport Act into law, addressing the need to accommodate ride-hailing services like Bolt and Uber. The amended Act allows these operators to apply for operating licenses akin to other public transport providers, eliminating the need for charter permits and metered taxi licenses.
The President signed three bills into law, including the National Land Transport Amendment Bill, which had been brought to his desk in 2020 but was returned to the National Assembly for reconsideration. Former Transport Minister Fikile Mbalula submitted the amended Act to the National Assembly in March 2020, according to MyBroadband.
Transport Minister Sindisiwe Chikunga welcomed the development. She stated that the regulations will be submitted to the Office of the State Law Advisor for certification before being sent to the Minister for approval. Chikunga noted that the Bill updates the National Land Transport Act of 2009 to reflect recent developments, simplify provisions, and address issues that have arisen since its implementation.
The Bill also includes provisions for non-motorized and accessible transport, reflecting a commitment to a modern, inclusive, and efficient transport system. Former Transport Minister Mbalula highlighted that the amendments create a new category of operating licenses and mandate technology providers to prevent illegal operators from using their platforms, with noncompliance punishable by fines up to R100,000.
The bill strengthens regulations, permits license revocation and suspension for violations, and addresses public concerns. These changes aim to reduce conflicts between metered taxi and ride-hailing drivers, as stated by the former minister.
While ride-hailing companies in South Africa may view this legislative change as a significant win, they face potential challenges in Kenya. Kenya’s proposed Finance Bill 2024 includes a 6% Significant Economic Presence (SEP) Tax, which ride-hailing operators argue could threaten their operations by disregarding operating costs and resulting in net losses for passengers.