President Cyril Ramaphosa recently signed the much-anticipated National Land Transport Amendment Bill (NLTAB) and the Economic Regulation of Transport Bill into law, in accordance with Section 79(1) of the Constitution. This significant development promises to bring substantial improvements to South Africa’s transport sector, fostering economic growth and fully recognizing the ride-hailing industry. This is according to Acting Head of Regulatory & Policy Africa, Bolt, Weyinmi Aghadiuno.
She shares the long process of Transport Bill:
The journey of the National Land Transport Amendment Bill, 2016, has been long and complex. Initially passed by Parliament and sent to the President for assent in 2020, the revised Bill now amends the National Land Transport Act, 2009. It introduces and updates definitions, provides for non-motorised and accessible transport, and aligns the Principal Act with new developments. Additionally, it grants provinces and municipalities the authority to conclude contracts for public transport services and expands the Minister’s power to make regulations and implement safety measures.
Commitment made
At the 42nd Southern African Transport Conference, newly appointed Minister of Transport Barbara Creecy committed to addressing South Africa’s transport challenges. Creecy highlighted that “Public transport in South Africa remains fractured and largely inadequate, and the need to create safe, reliable, affordable, and sustainable public transport should be a major focus.”
Meanwhile, the Economic Regulation of Transport Bill aims to foster economic growth by creating a more effective and productive transport sector. It establishes a Transport Economic Regulator responsible for investigating complaints, monitoring compliance, and enforcing regulations within the transport sector. This Bill will create a unified regulatory body focused on the economic regulation of the transport industry, streamlining processes and enhancing regulatory efficiency.
We are still awaiting the effective date for implementation, which is crucial for the new regulations. These will include provisions for ride-hailing and harmonize the regulatory framework that municipalities will apply regarding Operating Licences (OLs).
Ride hailing
The National Land Transport Amendment Bill introduces specific regulations for ride-hailing services, eliminating ambiguity and ensuring recognition by the Department of Transport, police, and other authorities. This is a major positive development for the ride-hailing industry. Operators in South Africa can now apply for operating licences like any other public transport provider, removing the need to use charter permits and metered taxi operating licences. This change simplifies the process and legitimizes ride-hailing services within the broader transport ecosystem.
The amendments create a new category of operating licences and impose obligations on technology providers to prevent illegal operators on their platforms. This is a crucial step in maintaining the integrity of the ride-hailing industry and ensuring that all operators adhere to high standards. Furthermore, the expanded powers granted to the Minister will allow for the implementation of regulations and safety measures vital for the sector’s smooth operation. This should help reduce conflicts between metered taxi and ride-hailing drivers, fostering a more harmonious relationship between transport service providers.
The strengthened regulations empower Provincial Regulatory Entities to withdraw or suspend operating licences when an operator has contravened the National Land Transport Act or the Roads Act. This adds an additional layer of accountability and ensures that only compliant operators can continue to provide services. Additionally, the Bill addresses public complaints and passenger treatment, including provisions for colour coding and ensuring that SAPS and metro police have no business interest in public transport operations. This enhances transparency and fairness within the industry.
A new era
President Ramaphosa’s signing of the National Land Transport Amendment Bill and the Economic Regulation of Transport Bill marks a new era for South Africa’s transport sector. The formalization of the ride-hailing industry, the introduction of specific regulations, and the establishment of a Transport Economic Regulator are all positive steps that will address existing problems and enhance the overall quality of transport services. At Bolt, we are optimistic about the future and committed to participating in this exciting new chapter for South Africa’s transport ecosystem. concludes Aghadiuno