Ride-hailing services like Uber and Bolt can now legally operate in one of Africa’s largest economies, South Africa. This was made public after the President Mr. Cyril Ramaphosa signed into law the National Land Transport Act. Initially, to operate ride-hailing businesses in South Africa, one needed a charter permit and meter operating license. With this new law, ride-hailing companies will need operating license like any other public transport operator.
According to the Transport Minister Sindisiwe Chikunga ‘’ …regulations will be submitted to the Office of the State Law Advisor for certification and submitted to the Minister for approval. ’’ This new law entrusts more powers to the Transport Minister in the regulation of these services. She went further to add that the law ‘’ reflects [SA] government’s commitment to a modern, inclusive and efficient transport system’’.
Recall that South Africa had earlier announced ambitious plans to roll out first batch of electrical vehicles made in the country by 2026 with its Electrical Vehicle Plan. With the signing of this bill, it signals to investors and general public a sense of seriousness and a bid to attract jobs into the market.
South Africa has a youth unemployment rate of 45.5% according to the country’s Department of Statistics. Political and industry analysts believe the signing of this new law is the first fruits of the recently-formed coalition government of African National Congress (ANC) and the Democratic Alliance (DA).
This law has been in the making since 2009. You can read more about the law here.
