South African President Cyril Ramaphosa has recently approved an amendment to the National Land Transport Act of South Africa, signaling a significant shift in the regulatory landscape for transportation platforms such as Uber and Bolt. This amendment paves the way for these ride-hailing services to acquire operating licenses without the need for charter permits or meter taxi licenses.
Notably, the amendment establishes stricter regulations, granting the transport minister enhanced powers to enforce safety standards and impose penalties on platforms that fail to comply. A key provision of the amendment introduces a new category of operating licenses and mandates that technology providers take measures to prevent unauthorized operators from utilizing their platforms. Noncompliance with these regulations could result in a substantial penalty fee of R100,000 ($5,428).
Transport Minister Sindisiwe Chikunga emphasized the bill’s focus on reinforcing regulations and empowering Provincial Regulatory Entities to revoke or suspend operating licenses in cases of noncompliance with the National Land Transport or Roads Act. Furthermore, the bill addresses issues related to handling public complaints, passenger treatment, color coding, and ensuring that law enforcement agencies such as SAPS and metro police have no vested interests in public transport operations.
As the transportation industry in South Africa undergoes this regulatory evolution, stakeholders and observers are closely monitoring the implications of these amendments. The changes introduced by the new legislation represent a significant step towards enhancing oversight and accountability within the sector.
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