South Africa: Why Operational Subsidies Are Key to Reforming South Africa's Minibus Taxi Sector

analysis

When South African Transport Minister Fikile Mbalula announced recently that the government was considering a R50 billion subsidy to the minibus taxi sector, it seemed a watershed moment.

The sector transports 66.5% of commuters, and has been hit hard by the sharp economic contraction that was deepened by the COVID-19 lockdowns since March.

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