How much it costs to buy a minibus taxi in South Africa

Minibus taxis can cost anywhere from R140,000 to R862,700 in South Africa, though most operators typically spend around R450,000.

A ubiquitous sight on South Africa’s roads, minibus taxis are a cornerstone of the local transport industry, responsible for ferrying millions of commuters every day.

Earlier this year, Transport Minister Barbara Creecy reported that the minibus taxi industry generates an estimated revenue of between R60 billion and R100 billion per year.

It directly contributes 1.4% to our GDP, and supports up to 300,000 jobs across South Africa, with eight out of ten commuters relying on taxis as their primary mode of transport.

There are more than 200,000 minibus taxis operating in South Africa; however, Creecy said that there are 85,000 too many, leading to an oversupply and conflict over commuter routes.

“Now, in our assessment, there is currently an oversupply of approximately 85,000 minibus taxis on the road, creating unproductive competition and oversaturation of routes,” she said.

“This calls for urgent intervention by the industry itself that will ensure balanced route allocation, improved profitability and long-term industry sustainability.”

The price of the vehicles themselves varies a lot depending on where you look and if you are buying new or second-hand.

The vast majority of minibus taxis on the roads are either Toyota HiAce or Toyota Quantum models, which are favoured due to their durability, reliability, and easy access to spare parts.

This is because these vehicles are locally built at Toyota South Africa Motors’ Prospecton factory in Durban, which ensures there is a steady supply of new models and parts for fleet operators.

Looking on AutoTrader, the cheapest Quantum model listed at the time of writing is a 2009 10-seater model with 727,697km on the odometer, which is selling for R140,000.

In comparison, the cheapest second-hand HiAce we could find was a 1994 model with 125,981km, which was listed for R269,900.

On the other end of the spectrum, if you were to buy either of these vehicles brand new, you can expect to pay a minimum of R549,300 for a HiAce or R862,700 for a Quantum.

Of course, the “true” cost of a minibus taxi lies between these two extremes, as the website SATaxi lists models from 2016 onwards with prices ranging from R340,000 to R556,663.

Most of these models are labelled “Ses’fikile”, which is an isiXhosa phrase meaning “we have arrived.”

Plans to bring the taxi industry into the national tax base

Earlier this month, Minister of Finance Enoch Godongwana announced that the government plans to bring South Africa’s informal economy into the tax base, including the taxi industry.

Nearly all taxi fares are paid in cash, which means there isn’t an official record of how much money most minibus operators generate.

Godongwana explained that it is the National Treasury’s responsibility to set policy, while the South African Revenue Service (SARS) administers and enforces tax laws.

“SARS continues to broaden the tax base by improving registration, filing and payment, where tax compliance remains low,” he said.

“This includes the informal economy and the taxi industry. SARS is also working to detect and respond to illicit financial flows and other forms of non-compliance.”

SARS aims to improve tax compliance within the informal transport sector by helping businesses to register, educating them on their tax obligations, and assisting with submitting returns.

Godongwana said that the taxi industry was identified as a priority sector in SARS’ informal economy and compliance work.

“SARS uses risk assessments, available data, targeted interventions and taxpayer education to improve registration, filing and payment in the sector,” he explained.