Transport troubles to dampen South Africa productivity

Significance

Governance woes at the agency reflect broader difficulties facing reforms aiming to improve and expand the strained transport system.

Impacts

• Trade union resistance to personnel restructuring at South African Airways could limit cost reductions, threatening its turnaround plan.
• Recently launched domestic low cost carriers FlySafair and Skywise could push established players to expand their regional routes.
• Rules that drivers for ride-sharing firm Uber obtain metered taxi licenses could slow, but not halt, its expansion in Cape Town.
• However, the competition posed to regular metered taxis could result in fresh intimidation, some of it violent.