South Africa’s constrained public finances and sluggish economy are limiting the pace of public transport improvements, senior Department of Transport (DoT) officials told delegates at the Southern African Bus Operators Association’s annual conference, in Sandton, on August 27.

DoT acting director-general James Mlawu kicked off his address by stating upfront that, as a result of this, operators should not expect an increase in subsidies in the short term.

“The day I come to your events and say I have money, you will know things have changed. But today, I must be honest: government is broke. The economy is not performing, and the fiscal envelope is not growing,” he said.

“We are borrowing at about R1.5-billion a day. [The National] Treasury insists on fiscal consolidation to close the debt gap, so there is no new money coming,” he added.

As such, he said this reality demanded efficiency and collaboration. “These are desperate times and [we need] strategies around how [we] can bring efficiencies, [while] also managing services so that they don’t collapse,” he said.

While acknowledging progress in recovering rail services, he admitted that sustainability still remains a major concern. “We have recovered 32 out of the 40 [passenger] rail corridors, and passenger numbers are looking good. But the operational costs are shooting through the roof," said Mlawu.

On bus and taxi services, Mlawu warned that some municipalities have been slow in implementing integrated public transport networks despite significant investment. “We have invested close to R60-billion in public transport networks, including [Bus Rapid Transit] systems, but very little can be seen on the ground. Municipalities remain stuck on infrastructure rollout instead of operations,” he said.

He also raised concerns about tensions in the minibus taxi sector and overtrading of routes, calling for “hard decisions” to formalise the industry.

Mlawu further stressed that integration remains the ultimate goal of government’s transport strategy. “An integrated system means a single ticketing system, scheduled services with proper timetables, and one brand across the network. But we must accept that cultural and behavioural challenges remain. Some operators are still resistant to cashless systems because they are used to daily cash takings,” he explained.

He also spoke of the need for better municipal capacity and improved planning. “Many municipalities lack technical expertise. We need to revive capacity-building programmes so that officials can implement and manage modern transport systems effectively,” said Mlawu.

Deputy director-general Mokonyama Mathabatha reiterated the need for integrated planning, particularly in Gauteng, where travel patterns are complex. “A person might work in Sandton and live in Johannesburg, or work in Ekurhuleni and live elsewhere. This makes planning extremely difficult unless it is done in an integrated way,” he said.

Mathabatha warned that political instability is a major threat to long-term planning. “You cannot have long-term transport plans without ensuring political stability. Transport planning cannot be done for two years only, especially when leadership changes frequently,” he stressed.

He also echoed the fiscal constraints highlighted by Mlawu. “One fundamental truth is that government does not have money. Your expectations must take this into account. When engaging with government, you must do so with the understanding that government has limited financial resources,” said Mathabatha.

In light of these challenges, both officials stressed that the importance of collaboration between government and operators remains crucial for the bus industry to survive. “The main aim is to improve the quality of life of the citizens. It is the responsibility of government to provide public transport. We are doing it through you, but it is our responsibility,” Mlawu concluded.