The Automobile Association (AA) argues that high fares, long commutes, and inadequate public transport are driving low-income workers into poverty. The association has called for increased investment in taxis, suburban rail, BRT, and pedestrian infrastructure.
Issuing this warning during Transport Month, the AA appealed to the government to reallocate funds to public transport, review fuel taxes, and prioritize affordable, safe, and convenient transport for low-income workers.
According to AA data, South African households spend an average of 16% of total mobility expenses, significantly exceeding the government's set limit of 10%. This financial burden is particularly felt by workers earning the minimum wage who live far from economic centers.
An accessibility analysis conducted by the Pietermaritzburg Group for Economic Justice and Dignity (PMBEJD) shows that transport and electricity costs can reach 64.6% of the national minimum wage. With a minimum monthly salary of 5078 rand, the average worker spends 1520 rand on transport alone, leaving them with less than 1800 rand for food and other family needs.
Bobi Ramagvede, CEO of AA, stated: 'South Africa has created a structural trap of poverty on wheels.' He added that when a security guard or salesperson is forced to give up almost half of their earnings just to travel by minivan taxi, the transport network ceases to facilitate access to opportunities and begins to penalize people for working.
AA noted that the legacy of spatial segregation in the country continues to create an additional financial burden for the working class, many of whom live on the outskirts of cities, far from workplaces. As a result, passengers often have to take two minivan taxi trips in each direction to get to work. At a fare of 18 rand per trip, a worker traveling four times a day spends 72 rand daily, or about 1580 rand per month just on taxi fares.
Despite the minivan taxi industry serving over 80% of public transport users, AA reported that the sector receives no direct operational subsidies from the state, making passengers vulnerable to rising fuel prices and fare increases. Ramagvede emphasized: 'The human cost is felt right at the dinner table. Workers are not choosing between public transport and luxuries. They are choosing between the cost of a taxi and buying protein for their children.'
The association warned that transport costs also negatively affect household nutrition, as families are forced to compromise on diet after paying for transport and utilities. PMBEJD estimates that a basic food basket for a family of four costs around 3800 rand per month. However, AA stated that minimum wage workers are left with an amount that is less than half of this cost after covering travel expenses, making it difficult to ensure balanced nutrition.
Information was also presented that over 25% of boys in South Africa under five years old suffer from growth retardation, raising concerns about the consequences of poverty and malnutrition. The Competition Commission also reported that, according to data provided by AA, workers spend an average of over 57% of their income on transport and electricity. The association pointed out that this financial pressure forces households to resort to expensive unsecured debt to purchase basic foodstuffs.
Against this backdrop, AA criticized government spending on large transport infrastructure projects, specifically Gautrain, arguing that more resources should be directed towards systems used by the majority of passengers. The association contrasted the funding allocated to Gautrain with the deterioration of Metrorail services on corridors serving working communities, which it links to vandalism and neglect.
Between the 2019/20 and 2022/23 financial years, the Gauteng Department of Roads and Transport paid Bombela Concession Company over 5.1 billion rand through contract patronage guarantees intended to compensate for lower-than-expected passenger traffic. According to AA data, the number of Gautrain trips during the same period decreased from 13.9 million to 7.9 million.
Ramagvede noted: 'Patronage guarantees are taxpayer insurance against poor commercial performance. Billions of rand that should fund mass transit and safe pedestrian walkways are being used to support an elite railway service for a shrinking, wealthy minority. We are subsidizing luxury mobility for a few, while the workforce travels in the dark on unsafe, unsubsidized transport.'
AA also reported that the transport crisis affects business: employees arrive at work exhausted after long journeys, and companies face rising costs for fleets and logistics. Furthermore, households that spend an increasing share of disposable income on transport and fuel have less money for goods and services, putting additional pressure on consumer industries. Ramagvede concluded: 'Mobility is the foundation of the economy. If people and goods cannot move affordably, economic growth stops. This applies to everything that moves, from corporate fleets managing logistics costs to mothers skipping meals so their children can go to school.'
AA called on the government to implement three immediate reforms to address the crisis. These include reallocating government funds from high-speed rail guarantees to mass transit systems, including taxis, BRT, and suburban rail; appointing an independent audit of the collection of general fuel excise and Road Accident Fund contributions to identify and eliminate unnecessary cost pressures on drivers and commercial operators; and investing in well-lit pedestrian walkways and non-motorized transport corridors connecting residential areas with major transport hubs.
The association stressed that improving transport access is crucial for reducing the financial burden on low-income households and expanding access to employment. Ramagvede concluded: 'We must shift from prestige to purpose. A decent public transport system is not judged by how quickly an executive moves between Sandton and the airport. It is judged by whether a worker can safely and with dignity get home while still having enough money to feed their family.'