The City of Johannesburg will increase fares for its transport services – Metrobus and Rea Vaya – as the struggling municipality attempts to balance its books.

Metrobus fares will increase by 4.6% while the rapid bus transport (BRT) system Rea Vaya is expected to hike its prices by 5% from July.

In a notice presented in council last week, the municipality announced that in terms of the Municipal Systems Act read with the Municipal Finance Management Act, Metrobus acting in accordance with its mandate from the City of Johannesburg, declared its intention to amend its fares with effect from July 1, 2025.

The municipality will communicate the decision to the local community, using radio broadcasts, publishing a notice in the prescribed manner, and inviting written submissions or representations regarding the city’s declared intention to amend or determine tariffs.

According to the City of Joburg, Metrobus is heavily dependent on the municipality for its continued operations.

"The income statement for the past four years (2021-2024) shows that, on average, 91.6% of the operating income is derived from government passenger subsidies.

"The organisation has faced budget cuts, adversely affecting its performance and passenger expectations," the City of Joburg noted.

In addition, the municipality stated that to address Metrobus’s challenges, the entity’s board has developed a five-year strategic plan implemented annually through the business plan to place the entity on a growth trajectory with strategic goals to ensure that it remains viable and sustainable.

Among the plans is to improve revenue generation, and develop and implement a cost-reduction plan.

Metrobus currently offers discounts to people with disability, scholars, and pensioners to ensure social inclusivity, accessibility, and easing of financial burdens as well as to ensure that everyone can enjoy the freedom of travel.

”Unfortunately, the financial performance of Metrobus has not been good due to significant budget cuts, which leads to a proposed reduced discount offered to concession card holders,” the city explained.

Discounts will be cut from between 86% and 30% to 20% and 25%, according to the proposals.

The BRT’s 5% increase has been defended as an attempt to achieve the optimum balance between operational sustainability and user affordability.

Launched in 2009 ahead of the 2010 FIFA World Cup, the system is set to expand with the municipality hoping that it will attract new passengers for revenue collection as the direct bus operating costs are covered by the city and not grant funding as required by the National Department of Transport.

loyiso.sidimba@inl.co.za

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Cash-strapped Joburg to increase Metrobus and Rea Vaya fares by up to 5%