The Western Cape provincial government reported that the recent taxi strike in Cape Town had substantial economic repercussions, resulting in billions in losses to the economy and daily losses of R16 million for taxi operators.
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Western Cape Mobility MEC Ricardo McKenzie provided a detailed account to the National Assembly’s transport committee on Thursday evening, outlining the strike’s root causes and its disruptive effects on various sectors within Cape Town and the province, as reported by EWN.
McKenzie disclosed that 38% of businesses faced challenges in maintaining their daily operations, 72% experienced declines in revenue and 19% witnessed more than a 50% drop in their daily income.
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The adverse effects were particularly felt in economically disadvantaged areas, where 16% of businesses reported difficulties in transporting workers from Khayelitsha.
The strike, initiated abruptly by the South African National Taxi Council (Santaco) on 3 August was primarily in response to taxi impoundments. Five people lost their lives during the violent protests, nine Golden Arrow Buses were burnt, and many were damaged.
This meeting comes in the wake of the recent Western Cape High Court ruling that formally approved an agreement between the South African National Taxi Council, the City of Cape Town and the provincial government last week.
McKenzie said the impact of the strike was significant and the provincial government would maintain its collaborative efforts with the City and national government to find a resolution and address the grievances, ‘We’re currently looking at approximately R5 billion loss to the economy. And including the minibus taxi industry, they informed us they lost nearly R16 million per day. The current cost estimate for the City of Cape Town specifically, it’s around R18 million but it’s just a cost estimate.’
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Picture: City of Cape Town / Facebook