South Africa’s minibus taxi industry could receive taxpayer-funded support to switch to electric vehicles (EVs), as government explores ways to make cleaner transport more affordable.
Transport Minister Barbara Creecy confirmed that her department is considering using the existing Taxi Recapitalisation Grant to help taxi operators purchase electric vehicles.
According to MyBroadband, Creecy discussed the proposal during an interview with Newzroom Afrika, highlighting the growing interest in EVs as motorists look to reduce fuel costs.
Government Considers Funding Electric Taxis
The Taxi Recapitalisation Grant is funded through the National Revenue Fund, meaning the money ultimately comes from South African taxpayers.
Creecy said government was investigating whether the grant could help taxi operators access electric vehicles.
She raised concerns that wealthier motorists would be able to afford EVs while public transport operators remained dependent on vehicles with high running costs.
However, the proposal has not been confirmed as an approved funding programme.
Tax compliance raises questions
The potential use of taxpayer money comes as government continues to address tax compliance within the taxi industry.
Although minibus taxi operators are required to pay income tax, the industry’s heavy reliance on cash transactions makes enforcement difficult.
Finance Minister Enoch Godongwana previously acknowledged low tax compliance in the sector and indicated that government intended to strengthen collections.
This raises questions about directing public funding towards an industry where tax compliance remains a concern.
Electric vehicle sales surge in South Africa
Electric vehicle sales have increased significantly in South Africa.
According to figures reported to the National Association of Automobile Manufacturers of South Africa (NAAMSA), 3,217 fully electric vehicles were sold between January and September 2026, compared to 802 during the same period in 2025.
Plug-in hybrid sales also increased from 1,784 to 8,082 vehicles.
Despite this growth, new energy vehicles accounted for only 4.55% of total vehicle sales during the first nine months of 2026.
Motorists could face another tax
Creecy has also proposed introducing a vehicle licence disc renewal fee to support the Road Accident Fund (RAF).
The fund currently receives money through fuel levies, which could decline as more motorists move towards electric vehicles.
However, the minister has not clarified whether the proposed fee would apply to all vehicles or only electric and hybrid models.
Automobile Association CEO Bobby Ramagwede has criticised the proposal, arguing that the RAF’s financial problems are primarily operational rather than the result of growing EV adoption.
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