Five Eastern Cape taxi operators have expanded their business ventures by launching a fully equipped vehicle repair workshop and spares shop in Kariega. The business, formed under the UDTA Auto Spare Primary Co-operative, brings together R600,000 in pooled member capital alongside R300,000 in machinery funding from the Eastern Cape Development Corporation. This new venture aims to reduce downtime, capture local supply chain spending, and provide practical trade accreditation for emerging mechanics and TVET students.
The UDTA Auto Spare Primary Co-operative was formed by five members of the Uitenhage and District Taxi Association, who pooled their resources to secure local automotive spend. The new workshop offers various services, including engine repairs, wheel alignment, tyre servicing, and parts sales. The venture projects first-year turnover to top R1 million, with profits to be reinvested for the first three years to drive sustainable growth and expand services.
The enterprise creates 10 permanent jobs and provides formal workplace experience for Midlands TVET College learners. In partnership with the AIDC Eastern Cape and merSETA, the facility will help informal mechanics earn formal Red Seal trade qualifications. This initiative supports the local economy by keeping spend within the region and creating opportunities for emerging enterprises and young people to gain practical automotive skills.
Eastern Cape MEC for Economic Development, Environmental Affairs and Tourism Nonkqubela Pieters attended the launch of the UDTA Workshop & Spares Facility in Kariega. Pieters challenged the taxi industry to look beyond passenger transport and deepen its participation across the automotive value chain. She emphasized that the new facility demonstrates what becomes possible when organized industry, communities, and government work together to translate economic policy into practical opportunities.
Pieters urged UDTA to view the facility as a platform for growth, diversification, and participation in the Eastern Cape's broader automotive ecosystem. She encouraged the taxi operators to build on the foundation laid and focus on good governance, partnerships, skills, and disciplined business practice. Pieters also highlighted the critical role of the taxi industry in the province's economy and social infrastructure.
UDTA Project Director Vuyani Kota explained that the cooperative's ambitions reach beyond its own members, targeting other taxi operators, private and small fleets, courier and security companies, construction businesses, and other vehicle owners in Nelson Mandela Bay and surrounding areas. The business aims to slash downtime and capture supply chain spending locally, with Kota emphasizing that every hour a vehicle remains off the road affects the owner, driver, employees, and passengers.
The ECDC's Imvaba Co-operative Fund contributed R300,000 worth of machinery and equipment, including vehicle lifts and diagnostic equipment. The R600,000 from the owners went towards renovating the premises, which offers various services, including engine repairs and tyre servicing. ECDC's Vuyokazi Zozi stated that the support was about more than funding, but enabling a locally owned enterprise to take ownership of the value chain.
Key points
- Five Eastern Cape taxi operators have launched a vehicle repair workshop and spares shop in Kariega, pooling R600,000 in member capital and securing R300,000 in machinery funding from the Eastern Cape Development Corporation.
- The venture aims to reduce downtime, capture local supply chain spending, and provide practical trade accreditation for emerging mechanics and TVET students.
- The business projects first-year turnover to top R1 million, with profits to be reinvested for the first three years to drive sustainable growth and expand services.
