Uber, Bolt can now apply for operating licences in South Africa

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June 13, 2024
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2 min read
image of a lawyer signing on a paper
  • South Africa's President Cyril Ramaphosa has signed the amended National Land Transport Act into law, addressing the need to accommodate ride-hailing services.
  • The amended Act enables ride-hailing service operators, including Bolt and Uber in South Africa, to apply for operating licences like other public transport providers. It eliminates the need for ride-hailing companies to obtain charter permits and metre taxi operating licences.

The President signed three bills into law, including the National Land Transport Amendment Bill, which was brought to his desk in 2020 but returned to the National Assembly for reconsideration.

MyBroadband reported that the former Transport Minister, Fikile Mbalula, submitted the amended Act to the National Assembly in March 2020. 

Transport Minister Sindisiwe Chikunga welcomed the development, stating that after signing, the regulations will be submitted to the Office of the State Law Advisor for certification before being sent to the Minister for approval.

According to Chikunga, the Bill updates the National Land Transport Act of 2009 to reflect recent developments, simplifies provisions, and addresses issues that have arisen since its implementation. It also includes provisions for non-motorised and accessible transport, reflecting a commitment to a modern, inclusive, and efficient transport system.

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The revised bill increases the Minister's authority to issue regulations and implement safety measures.

According to the report, former transport minister Mbalula noted that the amendments create a new category of operating licences and require technology providers to prevent illegal operators from using their platforms, with noncompliance punishable by up to R100,000.  

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The bill strengthens regulations, allows for licence revocation and suspension for violations, and addresses public concerns. These changes aim to reduce conflict between metered taxi and ride-hailing drivers, the former minister stated.

While ride-hailing companies in South Africa may view this as a significant win, Kenya's proposed Finance Bill 2024, with its 6% Significant Economic Presence (SEP) Tax, poses a threat to their operations in Kenya. They expressed dissatisfaction and noted it disregards operating costs and resulting net losses for passengers.

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