The minibus taxi industry holds vast potential in the journey toward economic growth and improved public transport. Both business development and capacity-building efforts are crucial for this industry’s growth, promising advantages like enhanced service quality and operational efficiency. However, the road to progress is not without obstacles. Fragmentation and a notable resistance to change pose significant challenges that require a strategic, multifaceted approach to overcome.

Overcoming Resistance to Change and Industry Fragmentation

Resistance to change is a common challenge, especially in sectors like the minibus taxi industry, where operators may fear disruptions to their established routines and the costs associated with adopting new practices or technologies. Regarding fragmentation, the minibus taxi industry is often characterised by a lack of formal organisation, making it difficult to implement unified capacity-building initiatives.

A multifaceted approach is essential to overcome these challenges of capacity building and business development. This approach includes the following elements: 

• Collaboration with stakeholders
• Incentive programmes 
• Tailored approaches

Collaboration with stakeholders in the minibus taxi industry by engaging government bodies and private sector partners can enhance resource availability and create a supportive network for capacity building. In contrast, incentive programs offer incentives for operators who participate in training, and compliance programs can encourage participation and foster a culture of continuous improvement. The last element of this multifaceted approach is the tailored element, which is a process of recognising the diversity within the minibus taxi industry and tailoring capacity-building programs to the specific needs of different stakeholders and operators, which will increase effectiveness.

Business development and capacity building are critical to the minibus taxi industry’s viability and growth. Stakeholders may improve operational efficiency and service quality by focusing on training, financial access, technological integration, regulatory compliance, and community participation. Capacity-building programmes are designed according to a holistic perspective of prominent stakeholder needs and require a robust approach to transitioning the minibus taxi industry into the formal sector. 

The industry has undergone various training sessions and workshops, including social media and digital marketing, to establish the regions as corporate brands that can effectively market and engage with their customers online. Essential business acumen, administration, and financial literacy are also prioritised to enable the regions to adopt a corporate structure and adapt to formal business processes and innovations while sustaining livelihoods and creating viable succession pathways. 

This transformation will benefit taxi operators and improve the overall public transportation experience for millions of passengers. With concerted efforts and collaboration, the minibus taxi industry can evolve into a more organised, efficient, and respected sector, driving economic growth and social progress. 

Should you wish to learn more about our bespoke capacity-building programmes to help grow business resources and create opportunities, contact us now for more at info@racs.org.za or +27 21 823 7668.