The Kings of Midlands Secondary Cooperative of taxi owners will today receive tools and equipment worth well over R10 million.
The Pietermaritzburg based cooperative was founded by a taxi association and represents 10 associations registered as primary cooperatives.
The co-op runs a tyre fitment centre, spares shop, panel beating services and a fuel station.
Government will hand over tyre fitment centre equipment, delivery vans and tow trucks, among others.
The handover of the equipment is part of the new Cooperative Incentive Programme of the Department of Small Business Development.
The programme targets cluster cooperatives to ensure sustainability of enterprises throughout the value chain.
This is a pragmatic intervention by the Department of Small Business Development, which endeavours to propel the growth and transformation of the taxi industry through the creation of viable, competitive and sustainable enterprises in the value chain, with the ultimate objective to see their inclusion in the mainstream economy.
"I think this is a fundamental step in the right direction. This approach will enhance the competitiveness of the individual taxi owners and the association as a whole," said Small Business Development Minister Lindiwe Zulu.
Zulu said there is a huge economic potential to derive economic benefit in clustering and aligning the activities in the taxi industry, while ensuring their inclusion in the value chain.
The taxi industry is estimated to be worth over R40 billion.