From e-tolls to taxis… Expensive transport in SA hits poor people the hardest

South Africa's poorest households are spending far too much of their disposable income on transport costs.

This is according to a Statistics South Africa (Stats SA) survey.

Public transport is considered affordable when commuters spend less than 10% of their disposable income on transport.

Statistician General Pali Lehohla says the study found two thirds of the country's lowest income earners used more than 20 percent of their disposable income on public transport.

The Money Show’s Bruce Whitfield interviewed Independent Transport Economist Andrew Marsay.

Marsay links the Stats SA survey with the e-toll system and says that poor people are on the losing end of our transport structure.

Scroll down for quotes from the audio below.

South Africa is unusual. Our apartheid legacy and low density is partly to blame.

Andrew Marsay

People can’t afford to get to work late. And the cheapest forms of public transport - such as the railways - are unreliable. So people have to use minibus taxis.

Andrew Marsay

Minibus taxis are the backbone of public transport in South Africa.

Andrew Marsay

People prefer to use private cars. And most road users don’t want to pay for the roads. Do we put money on roads or public transport? Etolls was a mechanism to strike a balance but the relatively wealthy people in Gauteng are putting themselves first.

Andrew Marsay

Subscribe to our Business Wrap Newsletter


Recommended

by NEWSROOM AI
Read More
Development Bank throws SAA a lifeline

Development Bank throws SAA a lifeline

SAA has secured R3.5 billion in loan from the Development Bank of Southern Africa, needed to run the airline during the business rescue process.

Which commercials gave bang for buck and which ones bummed this week?

Which commercials gave bang for buck and which ones bummed this week?

An advertising and branding expert chooses his favourite and least favourite advertisements of the week.

Affordable housing, social housing, gap housing - how it works

Affordable housing, social housing, gap housing - how it works

We need to understand the principle of affordable housing versus social housing - versus gap housing.

Edcon chief intervenes on Twitter, does what bosses should do

Edcon chief intervenes on Twitter, does what bosses should do

When should a company chief jump in on social media when there's a problem with his company's service delivery?

Is it tickets for Cell C after defaulting on repayments on a R2.7-billion loan?

Is it tickets for Cell C after defaulting on repayments on a R2.7-billion loan?

Cell C cannot pay its debts. The company has defaulted on the payment of interest on a US$184-million loan.

How Wayne Duvenage came to lead the struggle against e-tolls and Sanral

How Wayne Duvenage came to lead the struggle against e-tolls and Sanral

We review “The E-Toll Saga - A Journey from CEO to Civil Activist” by Wayne Duvenage and Angelique Serrao.

Popular articles
[VIDEO] Brawl allegedly in Kyalami Estate has social media in stitches

[VIDEO] Brawl allegedly in Kyalami Estate has social media in stitches

Khabazela shares some of the videos that went viral on Twitter and Facebook.