As South Africa implements groundbreaking legislation to regulate its ride-hailing industry, Kenya is still grappling with driver dissatisfaction and strikes.
Last week, South African President Cyril Ramaphosa signed two bills aimed at transforming the country’s transport sector. The National Land Transport Amendment Bill (NLTAB) and the Economic Regulation of Transport Bill bring ride-hailing services under official regulation for the first time. This move legitimizes the industry, allowing operators to apply for operating licenses and creating a new category specifically for these services.
The legislation aims to streamline processes, enhance regulatory efficiency, and improve relationships between different transport providers. It also establishes a Transport Economic Regulator to oversee complaints and enforce regulations. Weyinmi Aghadiuno of Bolt expressed optimism about these developments, noting that formalization will address existing problems and enhance service quality.
Sadly, Kenya’s ride-hailing industry still has a long way to go before change is implemented. Digital taxi operators recently went on strike, protesting poor pay, unfavorable working conditions, and fraught relationships with the local authorities. Drivers in Nairobi marched to various company offices and government buildings, including Uber, Bolt offices, Little Cab, and NTSA, demanding better terms and an end to frequent customer discounts that eat into their earnings.
The Kenyan strike encompassed all issues that South Africa’s new legislation aims to address. While South African authorities work to create designated pickup and drop-off points for digital taxis, Kenyan drivers complain about harassment from county officers when picking up passengers. The lack of clear regulations in Kenya has led to conflicts between drivers and local authorities, a problem South Africa hopes to mitigate through its new laws.
South Africa’s approach to recognizing and formalizing these services could provide a model for other African nations. However, legislation alone is not enough; effective implementation and ongoing dialogue between all stakeholders is still very crucial.
Africa has seen a rapid growth of ride-hailing services, and the experiences of South Africa after the passing of this legislation may provide valuable lessons for policymakers across the continent. The success (or failures) of these reforms and the resolution of driver grievances will likely shape the future of urban mobility in Africa’s biggest cities.
