President Cyril Ramaphosa Signs Landmark Legislation to Regulate Ride-Hailing Services in SA

In a significant move to modernize South Africa’s transportation landscape, President Cyril Ramaphosa has signed the amended National Land Transport Act into law. This ground-breaking legislation addresses the long-standing need to regulate and accommodate ride-hailing services, such as Bolt and Uber, bringing them into alignment with other public transport providers through a streamlined licensing process.

The amended Act removes the previously required charter permits and meter taxi operating licenses for ride-hailing companies, recognizing their unique business model. This change aims to simplify the licensing procedure, thus eliminating barriers that had previously hindered the operations of ride-hailing services.

Alongside the National Land Transport Amendment Bill, President Ramaphosa also signed two other bills into law. The path to these changes has been a protracted one, with the Amendment Bill initially presented to the National Assembly in 2020 and subsequently returned for further reconsideration.

Transport Minister Sindisiwe Chikunga welcomed the new legislation, noting that the regulations will now undergo certification by the Office of the State Law Advisor before being submitted to the Minister for final approval. Chikunga highlighted that the Bill updates the National Land Transport Act of 2009, reflecting recent advancements in the transportation sector. It also addresses issues that have emerged since the Act’s original implementation and includes provisions for non-motorized and accessible transport, demonstrating the government’s commitment to a modern, inclusive, and efficient transport system.

Former Transport Minister Fikile Mbalula, who initially submitted the amended Act in March 2020, remarked that the amendments introduce a new category of operating licenses specifically for ride-hailing services. The legislation also mandates technology providers to prevent illegal operators from using their platforms, with penalties for non-compliance reaching up to R100,000.

Furthermore, the bill strengthens regulatory measures, allowing for the revocation and suspension of licenses in the event of violations. It addresses public concerns and aims to mitigate conflicts between metered taxi and ride-hailing drivers, which have been a significant issue in the past.

While this development is a notable victory for ride-hailing companies in South Africa, their counterparts in Kenya face potential challenges. Kenya’s proposed Finance Bill 2024 includes a 6% Significant Economic Presence (SEP) Tax, causing concern among ride-hailing operators who argue that the tax fails to consider their operating costs, resulting in net losses for passengers.

South Africa’s move to regulate ride-hailing services marks a pivotal step toward modernizing its transportation infrastructure, ensuring fair competition among all players in the industry, and enhancing the overall efficiency and inclusivity of the transport system.

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