Daily turnover could be R233m
SOUTH AFRICA’S roughly 120 000 minibus taxis may be a bane to motorists but they are an essential cog in the wheel of the economy, ferrying an estimated 5m to 10m passengers to work and back each day.
Although the exact contribution of the minibus taxi industry to SA’s GDP is hard to quantify given its unregulated nature, economists estimate that the turnover could be as high as R150m a day.
That’s using a return fare from Soweto to central Johannesburg of about R15 a day as a national benchmark.
Though some economists argue that R70m is closer to the mark (as the Soweto/Johannesburg route is one of the more expensive trips), Econometrix economist Tony Twine says that R150m is entirely within reason. In fact, Twine reckons the total size of the minibus taxi industry equates to around 5% of GDP.
If Twine’s estimate is correct, then the daily turnover figure of R150m could be too low. Given that nominal GDP was estimated at R1,7 trillion for the 2006/07 fiscal year, 5% would translate into a total annual turnover of R85bn – R5bn more than Remgro’s market capitalisation.
That would imply a daily turnover just shy of R233m. It’s little wonder then that Government is so keen to ensure that the industry is regulated – and taxed.