Formalising the informal : the South African mini-bus taxi industry at the crossroads

Bibliography: leaves 69-72.The South African Mini-Bus taxi industry is rooted within the informal sector yet much of its profitability and survival has been forged and become entrenched by cultivating a presence within the formal economy. This dualism has created many internal pressures for this industry and many of these pressures have been associated with violence. This paper considers all these multi-faceted dimensions but also calls for the sector's incorporation and regulation into the formal economy. The theoretical foundations of regulation are explored and it is established that a non-regulatory regime leads to decreased service quality and worsened driver-working conditions. Before the regulatory policies are further examined, the paper establishes the growth of this industry, paying particular attention to the violence that has been a key feature to the industry. This analysis spans the period 1987 to 2000 and highlights the various dynamics that have led to this violence. Political motivations are a key factor but one fundamental issue is that of overtraded routes that has numerous negative spill overs. This overtrading is a direct result of the industry lacking a proper regulatory framework in which to operate. The paper uses a survey to examine the prevailing working conditions that are built upon a system of informality and highlights the need for intervention to support the plight of drivers who are exploited. Thereafter the current government interventions in place are examined with a further analysis on the effects of minimum wages. The paper then concludes by raising critical issues that the government must address effectively for this intervention to be successful