KARIEGA- The Eastern Cape Development Corporation (ECDC) has noted the official opening of a workshop and spares facility in Kariega owned by taxi operators to retain maintenance spend within the industry.
Formed in response to high maintenance costs, long turnaround times and limited access to specialised services, the facility offers engine repairs, tyre repairs, wheel alignment, gearbox replacement and sale of parts.In a statement issued on 07 October 2026, the ECDC said the Uitenhage and District Taxi Association (UDTA) Auto Spare Primary Co-operative Limited opened on 01 October 2026.
It was established in November 2025 by five members of the UDTA.
Through its Imvaba Fund, the ECDC approved an amount of R300,000 towards equipment, including lifts, diagnostic tools and wheel balancing equipment.
The owners had invested more than R600,000 to renovate the property.
ECDC said support was about more than funding. Its Executive Manager for Enterprise Finance, Support and Fund Management, Vuyokazi Zozi, said it is about enabling a locally owned enterprise to own the value chain.
“The initiative provides an opportunity for taxi owners to derive greater value by retaining 100 percent ownership, effectively becoming both customers and beneficiaries,” Zozi said.
The cooperative projects of an amount of R1,66 Million in sales in its first year. Members resolved that no profits will be distributed for three years, with earnings reinvested.
UDTA Project Director Vuyani Kota, who oversees projects for the association, said the facility addresses daily pressure.
“When a taxi is standing that taxi is not generating income. Every hour off the road affects the owner, the driver and the passengers,” Kota said.
The business is expected to create 10 permanent jobs and will host students from Midlands TVET College for workplace experience.
Speaking at the opening, Eastern Cape MEC for Economic Development, Environmental Affairs and Tourism, Nonkqubela Pieters, said the launch shows what is possible when industry, communities and government work together.
“Today is not simply about opening a workshop and spares facility. It is about demonstrating what becomes possible when organised industry, communities and government work together to translate economic policy into practical opportunities,” she said.
Pieters challenged operators to see themselves not only as owners of taxis but as entrepreneurs capable of building businesses across the value chain.
The Kariega facility is the first step towards that idea, a business owned by the taxi industry, supported through development finance and built on a market that already exists.
Courtesy of IMAGES: ECDC
Leave a Reply