COSATU warns of KZN bus shutdown over unpaid subsidies

The Congress of South African Trade Unions (COSATU) is warning of a public transport crisis in KwaZulu-Natal after several major commuter bus operators threatened to halt services as early as next week over unpaid government subsidies.

Bus companies say they have not received payments from the KwaZulu-Natal Department of Transport since April, despite contractual obligations.

The National Department of Transport has confirmed that subsidy allocations were transferred, pointing to a breakdown at provincial level.

Operators say they have exhausted their reserves covering the shortfall, and financial institutions are no longer willing to extend credit.

Thousands of daily commuters who rely on buses to travel to work, school and healthcare facilities could be affected, along with more than 1 000 workers employed by the bus companies.

COSATU spokesperson Zanele Sabela said the consequences of a shutdown would be severe, particularly for the working class and low-income earners.

“Thousands of commuters will not have transport if that were to happen. Transport that they use to go to work, to school — there’s even a bus company that ferries university students up and down. If that actually happens, then the economy will grind to a standstill because a lot of people use buses for their daily commute. KZN is the second largest provincial economy in the country, bringing in about 16% of the GDP. So this will definitely spell disaster if it happens,” Sabela said.

She said the national department had confirmed the funds had been paid, making the provincial department the source of the problem.

“The bus companies wrote to the Passenger Bus Bargaining Council to let the general secretary know, and he immediately phoned the National Department of Transport, and they said these have been paid. So the problem is obviously in KZN in the Department of Transport in the province, which has not paid these funds. The bus companies have had to dig deep into their reserves to continue services so that commuters are not inconvenienced. But now they’re finding that those reserves are finished. And what’s worse is the financial institutions are not willing anymore to extend their credit lines,” Sabela said.

She said the situation also raised serious governance concerns about the KwaZulu-Natal Department of Transport, and called on the National Department to follow up with the province.

Sabela warned that commuters left without bus services would be forced to use taxis, which typically raised their prices when bus services were disrupted — adding further financial pressure at a time when diesel costs had also increased.

“If you have budgeted for a bus, which is normally cheaper than a taxi because it is subsidised, then you find that you will be out of pocket because they also tend to raise those prices. This will definitely be affecting the working class and the poor the most, and those are the people that the government needs to protect,” Sabela said.

COSATU said it had not yet directly engaged the KwaZulu-Natal government but would be activating its provincial structures to establish where the payment breakdown had occurred.

#COSATU is deeply concerned that South Africa’s second largest provincial economy, KwaZulu-Natal will grind to a halt if 20 commuter bus companies stop operating next week. @gagasifm @Ukhozi_CA @SABCNews @ukhozi_fm @MDNnewss @Newzroom405 @eNCA
@ewnupdates @JacaNewswatch @IOL pic.twitter.com/uxqiXIE1Se

— @COSATU Today (@_cosatu) August 6, 2026