MINISTER S’BU NDEBELE AT THE OPENING OF THE PETROL FILLING STATION FOR THE ABAQULUSI TAXI CO-OP

29 October 2001

 

The Master of Ceremonies;
The Traditional Leaders present here today;
Your Excellency The Mayor of Vryheid;
The Chairperson and Members of the KwaZulu Natal Taxi Council;
The Chairperson and the Executive Members of the Vryheid Regional Taxi Council;
All the members of the taxi industry present;
Distinguished guests.

We started on this journey way back in 1995. We set ourselves four objectives.

First we took upon ourselves the task of bringing the operations of the taxi industry into a legalized environment. We reversed the previous trend whereby taxis were not recognized as a legal mode of pubic transport in the manner in which the buses and tra ins were. To succeed in the regard we had to study very carefully the environment in which this industry was operating. Thereafter we had to establish an institutional framework in the form of laws and structures.

We set up a process through which the taxi operators and their associations could come forward and be counted. How many are they? How many vehicles do they operate? Where do they operate and how? What associations do they belong to? We have accomplished this task of legalizing the taxi industry with the issuing by the Roads Transportation Board of some 4000 taxi operating licenses. The second batch of 4000 will be released in the very near future. The rest of the taxi operating licences will follow as soon as the disputes around routes affecting those associations have been resolved. Today every single taxi operator who has complied with the processes that have been put in place is either in possession of an operating license or is soon to receive one. Truly a milestone in the history of this industry. Indeed an important component in the transformation of the taxi industry from legal obscurity to the security of their business operations through operating within the framework of the law.

Secondly we recognized the dire need for capacity building. We accepted a duty to facilitate the provision of training for the owners as well as the drivers. Even within an environment of scarce resources we started this process in 1997. Scores of owners and operators were taken through courses on business management and customer care. Drivers were put through the advanced driver training programme. It is still our intention to continue on this route once sufficient planning has taken place within the ambit of the National Skills Development Act.

Thirdly we decide to declare war against violence and conflict within the Taxi Industry. We established a team of people whose duty was to mediate and eliminate potential for conflict. We established a judicial commission of enquiry into the nature and causes of violence. We are already in the process of implementing some of the recommendations of the commission. The Colour Coding Project has kicked off. The objective is to make the vehicles easily identifiable through a colour scheme that will ensure that all vehicles operating within a specific route will be colour coded.

Fourthly we recognized the role of Government in assisting the Taxi Industry to become economically empowered. Here our province took the lead ahead of the rest of the country when in 1999 we assisted with the setting up of the taxi co-operatives and the establishment of a province wide structure under the name of Umthombo Investments Company. We knew that it was our duty as Government to provide the environment for the Taxi Industry to become economically viable.

It is with regard to this fourth leg, ladies and gentlemen, that we have faced the most difficult challenges. Firstly the road itself, towards the economic empowerment of the taxi industry, had not been built. We had to start the process with no previous points of reference and on the back of a legacy of chronic neglect. Today the taxi industry in KwaZulu Natal can boast of its own structures upon which it can develop business partnerships to its own benefit. The achievement we celebrate today is thus not a n isolated incidence. It develops out of a well thought out strategy of Government. Let me now focus directly onto this significance of this occasion.

Today ABAQULUSI are celebrating the acquisition of a petrol filling station of their own. What is the significance of this moment to the economic development strategy that we have put in place? Why would we gather here today to celebrate the acquisition, b y 700 people, of a business that is typically owned by one individual? Here are a few reasons why:

  • The whole purpose for Government facilitating the economic empowerment of the taxi industry is to awaken the industry to the power it possesses. 700 vehicles spending R200 on petrol per day will produce a business with a turnover of R4.2 Million per month . In annual terms we are talking of cash in excess of R50 Million flowing through this business. This is the money that this region of the taxi industry is currently spending on a daily basis as we speak. What this industry can do with an ordinary petrol filling station is what no individual can achieve.

  • This petrol filling station is an important foundation upon which this industry could build more wealth creation ideas. It is intended to serve as a mirror to the taxi industry. If you fail to support this business with all your vehicles than you must know you are not ready to go into business as a collective. If you support this business with your vehicles and you still fail to manage the finances you will know that you have nobody else to blame for your failures. Such is the significance of the opportunity this region is celebrating today. You are putting a mirror in front of yourselves. If you fail to perform it is not you but the entire taxi industry that carries the stigma. If you succeed not only are you creating wealth for your families but you are displaying to the rest of the country the levels of maturity that have been achieved by the industry.

I need now to turn to the leadership of ABAQULUSI TRANSPORT CO-OP. The perseverance you have displayed in pursuing this project is commendable. The work however has only just begun. To make a success of this project will require a lot of wisdom in the manner in which you manage and lead. Key to the future success of this business is TRANSPARENCY. For your members to continue to support this business you will need to call them into meetings on a regular basis. At these meetings you and your partners will nee d to lay the books of this business open. How much has been realized in sales? How much has been spent and on what? How much is being paid to your financiers as a repayment of loans? How much is left in the business for the month? You will also need to discuss what will ultimately be done to any profits realized.

There is no other way to making this business a success. If you succeed you will have led the way for the rest of your counterparts in other regions. We want to return to this region, in the near future, to celebrate an offshoot of the business we are celebrating today.

S’BU NDEBELE
KZN MINISTER OF TRANSPORT

 

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