Nomagqwetha’s business is set to be more profitable, thanks to taxi recapitalisation

The Revised Taxi Recapitalisation Programme (RTRP) offers Eastern Cape taxi operator Nomagqwetha Sinnah Khwaza the opportunity to have a more sustainable, more cost-efficient business.

The RTRP aims to improve road safety by removing old and unroadworthy taxi vehicles from South African roads via a formal scrapping process. Owners receive a scrapping allowance for their old minibus taxis, with which they are able to finance new vehicles.

Nomagqwetha’s taxi is old. She has been in the taxi industry for many years, still operating the only vehicle she has ever owned, but it’s time to replace it.

“The taxi is mine. It is my first taxi, which I acquired in 2007. My introduction to the taxi industry started when I was very young because my uncles and their children (my cousins) owned taxis. I thought this must be a family trade and decided not to miss the opportunity to join when an opportunity presented itself.” 

“I intend to buy another taxi with the scrapping allowance I will receive from the recapitalisation programme, even if it’s a smaller taxi vehicle compared to the one I’m currently scrapping,” says Nomagqwetha.

“I want to buy a new taxi with the hope that it does not require constant mechanical attention. If I can achieve that, I know my family and that taxi will go a long way.”

She and her family have already come far with her old vehicle, she says: “All businesses have their highs and lows, and being a woman in an industry dominated by men can be challenging. Despite all that, my family and I have benefited from owning a taxi. It is a lucrative business and the income has sustained my family over the years. I have four children. All four of my children were educated using money from this taxi business.

“Two of the kids went on to complete their university studies, all the way in Gauteng, with the money we gained from our taxi business. Another enrolled into nursing school, and my last-born son recently completed his studies at Varsity College, despite facing financial difficulties as the taxi was old and had depreciated quite drastically, with lots of mechanical issues.”

However, with a new minibus taxi, Nomagqwetha’s overheads will certainly be lower thanks to lower maintenance costs and better fuel efficiency – which ultimately translates to a more profitable bottom line.