President Cyril Ramaphosa will address the nation at 20h30 on Sunday evening (25 July), to discuss developments in the country’s response to the Covid-19 pandemic.

The president’s address will follow meetings of the National Coronavirus Command Council, the President’s Coordinating Council and Cabinet which are taking place during the course of the day.

“As South Africa rolls out its Covid-19 vaccination programme, government and social partners are continuously monitoring Covid-19 infection, treatment and patient recovery rates as well as compliance with health regulations and other prevention measures,” the Presidency said in a statement.

President @CyrilRamaphosa will address the nation at 20h30 today, Sunday, 25 July 2021, on developments in the country’s response to the #COVID19 pandemic.

— Presidency | South Africa (@PresidencyZA) July 25, 2021

The president is expected to ease some of South Africa’s lockdown restrictions, according to the Sunday Times.

Rosemary Anderson, chair of Federated Hospitality Association of Southern Africa (FEDHASA), told the Sunday paper that it expects the president to ease the country’s travel and alcohol bans to help get the economy on track.

“Without lifting the alcohol ban, most restaurants will no longer be financially viable, as big portions of profits come from alcohol sales,” said Anderson.

A total of 49,589 tests were conducted in the last 24 hours in South Africa, with 12,056 new cases, representing a 24.3% positivity rate. A further 413 Covid-19 related deaths have been reported, the National Institute for Communicable Diseases said.

The majority of new cases are from Gauteng (30%), followed by the Western Cape (21%). KwaZulu-Natal accounted for 14%; Mpumalanga accounted for 8%.

7-day moving average number of cases by province

Read: Ramaphosa expected to ease lockdown restrictions on Sunday – including lifting the alcohol ban

https://businesstech.co.za/news/government/508588/president-ramaphosa-to-address-south-africa-on-sunday-evening/

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New data from AutoTrader reveals a record high of over 319 million online vehicle searches conducted during the first half of 2021.

The group’s 2021 AutoTrader Mid-Year Industry Report, provides precise data when it comes to the used car market in South Africa. The 56-page report found that BMW is the most searched for and also the most viewed used car brand in the country, while the most searched for model is the Toyota Hilux. It is also the most enquired about second-hand vehicle.

The Volkswagen Golf GTI is the most searched for individual variant, it said, while sport utility vehicles (SUVs) have the highest number of body type searches.

According to AutoTrader CEO George Mienie, the report comes at a pivotal time for car manufacturers and car dealers alike. “Following the recovery of a disrupted South African auto market, the industry focus now needs to shift to forging a path towards the new normal, one that ensures sustainability for the long term,” he said.

“Car shopping behavioural patterns and journeys were analysed, leading to insights into which makes, models and for the first time in South Africa, which variants including trim level data have become important to car-buying consumers,” Mienie said.

Since the last AutoTrader Car Bi-annual Industry Report, the top 5 most searched for brands remains largely the same, with only a single change in rank. The data shows that the lead in searches that BMW has traditionally enjoyed, has diminished further in the last six months as consumers search and compare more brands in their consideration set.

The top 3 most searched for car brands in South Africa took 37% of all car searches, down from 45% in the last six months of 2020. 12.8% of all car brand Searches went to BMW, down from 15.4% in
the previous six months. Mercedes-Benz took second place with 11.94% of all car searches, with Volkswagen accounted for 11.87% of total searches.

Coming out of the epicentre of the national lockdown, double & single cab bakkies commanded the most consumer attention. The top 3  most searched for models, which represent 0.4% of all models listed on AutoTrader, attracted 9.4% of all model searches, down from 11% in the previous six months.

Ultimately, the share of searches has dropped across most models, but absolute search figures for top models have increased by 17.6%.

Top 10 Models

The most searched for model (3.6% of all searches), once again was the Toyota Hilux, with 11.5 million searches. The second most searched for model was the Volkswagen Golf, with 2.9%  of the total search share. The Mercedes-Benz C-Class which generated 2.8% of the total search share (9 million searches), was third.

The Volkswagen Golf GTI is still the most searched for variant of all listed variants available for sale. The top 3 most searched for variants (0.004% of all available) received 1.4% of all searches.

It’s worth noting, that since the introduction of Variant level search functionality, searches for the Volkswagen Golf GTI have tripled. The Volkswagen Polo GTI has retained the second most searches (1.4 million searches or 0.45% of total search share) after losing its position to the Mercedes-AMG C-Class C63  in the previous reports, receiving 0.44% of the total share.

Read: South Africa’s top 10 most sought-after used cars – with price and mileage

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The consequences of driving with a cancelled or suspended driver’s licence are in the spotlight following amendments to the Administrative Adjudication of Road Traffic Offences (Aarto) Act, which will ‘go live’ from 1 July 2021.

The changes give the Road Traffic Infringement Agency (RTIA) the power to suspend your driver’s license if you are guilty of multiple contraventions of the country’s road traffic laws.

The act introduces an expansive demerit point system that will eventually include more than 2500 traffic offences or infringements.

Drivers who commit an offence – such as failing to stop at a stop sign, jumping a red light or speeding – will receive a predetermined number of demerit points, which will accumulate against their driver’s licence over time.

Calculating demerit points

A driver who accumulates more than 15 demerit points will have his or her driver’s licence suspended for a period of three or more months: you get three months for 16 points; six for 17 points; nine for 18 points; and a year for 19 points.

Three suspensions will result in a driver’s licence being cancelled and the driver having to repeat the entire licensing process from scratch.

Infringement notices will be issued by way of ‘spot fines’ or registered letters. You can also check your infringement notices online at aarto.gov.za.

“It is important that you keep a close watch over your demerit point status and take the necessary action to inform the RTIA in the event an infringement notice must be reassigned to another driver,” said Deanne van Doesburgh, head of product development at Hollard Insurance.

If you receive an infringement notice, you have 32-days to either pay the fine; dispute the infringement notice with the RTIA; elect to be tried in court; or nominate another driver, assuming you were not the driver when the violation occurred.

If you do not respond in the first 32-days, you will receive a courtesy letter from the RTIA, reminding you of the outstanding fine plus a R60 penalty fee, with 32 more days to act.

And if you do nothing for 64 days, an enforcement order will be issued. Your demerit points will be automatically added to your licence.

Guilty unless proven otherwise

Important considerations for drivers and vehicle owners include:

• First, the system operates on a ‘guilty unless proven otherwise’ basis, which means that demerit points will count against you unless you successfully challenge an infringement notice.

• Second, there is a strong chance that points may be issued against the vehicle owner’s licence rather than the driver, for example in the case of a camera trap.

• And third, driving a vehicle when your licence is suspended is considered a criminal offence, subject to a fine or jail time.

Your insurers can exclude cover for a loss event that takes place when you or another driver drives your insured vehicle with a cancelled or suspended licence, Hollard warned further.

“We advise our policyholders to ensure that their insured vehicles are always driven by someone with a valid driver’s licence,” said Van Doesburgh.

“If a licence suspension results in a change of use of your motor vehicle or change in the regular driver, then you should immediately notify your broker, because it may result in changes to your premium or introduce additional conditions to your policy”.

Brokers must also remind clients who have ‘named driver’ policies that they cannot simply substitute another driver following a licence suspension.

It is common for motor insurers in certain developed markets to consider ‘black marks’ against a driver’s licence as evidence that they are dealing with a riskier client, but Hollard believes it is too soon to incorporate South Africa’s demerit point system into pricing.

The insurer does not foresee any immediate changes to administrative, claims or underwriting processes in response to the AARTO amendments.

Admin nightmare

Hein Jordt, managing director of Ctrack SA, said that while the new system is a good idea, it is fraught with several administrative pitfalls. For example, the demerit points are allocated to the registered owner of the vehicle.

The accumulation of these demerit points could lead to the suspension or cancellation of an individual’s driving licence.

The act states that the owner must then notify the relevant authorities as to who was driving the vehicle when the law was broken so that the demerit points are correctly allocated to the offending driver.

“This presents an administrative nightmare for large fleets, where many vehicles are registered in a single person’s name,” he said.

“When fines are issued, it will be the responsibility of the fleet manager to transfer the fines to the correct offending driver. This means that it is critically important to keep a log of who is driving vehicles when.”

Jordt said that the way employees use vehicles will also have a significant impact on an owner’s business.

“Drivers who breach road regulations risk their own safety, the safety of others, but are also the cause of additional costs for the business such as fuel, maintenance, insurance and even traffic fines if these are not allocated to the individual driver correctly.

“A driver losing their licence due to an ongoing accumulation of points, will also no longer be able to perform their core job function as a driver,” he said.

“In principle, this act is a good idea, road traffic accident statistics reveal that 90% of accidents are preceded by a road traffic offence. The threat of losing your drivers licence will hopefully change the culture of reckless driving behaviour,” Jordt said.

Read: New road laws hit next month in South Africa – these questions still need to be answered

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For most drivers, there can be nothing more annoying than a reckless driver that dangerously cuts in front of you, or drives facing oncoming traffic, says Wilma van der Walt, executive of customer experience and operations at PPS Short-Term Insurance.

This is the reality for drivers in South Africa’s towns and cities but that may be a thing of the past should authorities properly enforce the upcoming demerit system.

This is because one of the implications for drivers is that they could potentially lose their driver’s license for committing road traffic infringements.

Not only could this leave you, or an employee of your company, not able to drive, but it could potentially influence your short-term insurance.

With the new Administrative Adjudication of Road Traffic Offences (Aarto) Amendment Act due for implementation on 1 July, these are stark realities that individuals and employers will have to be aware of.

That is because the Aarto Act includes a demerit system whereby a person, operator or company juristic person, will not only pay a fine but will also incur demerit points when a traffic infringement is committed.

This could ultimately lead to one’s driver’s licence being suspended or cancelled or, complicate the employment of an individual hired explicitly to perform a driving function.

The demerit concept

The concept of a demerit point system to encourage drivers to abide by traffic laws might be new to South Africa, but it is an established practice internationally. Countries such as Australia and the United Kingdom have long had such systems in force.

As much as it has not been implemented yet, South Africa’s demerit system was signed into law in September 1998 already as part of the Aarto Act, Act 46 of 1998.

How will the point system work?

Once the system is implemented drivers will start with zero points. For every infringement – which includes laws regarding the roadworthiness of a vehicle – demerit points will be allocated.

For example, the published guidelines state that if a brake light is not working on the vehicle, one demerit point will be allocated, as well as a fine of R1,000.

Some infringements can lead to up to six demerit points. The full schedule of the more than 2 500 separate charges can be viewed in the Aarto Act.

Drivers will be allowed to accumulate a maximum of 15 demerit points over a three-year period. Learner drivers, however, will only be allowed a maximum of six points.

Should a driver exceed this number, their licence will be suspended for a period of three months. If you drive while your licence is suspended, you will be subject to a fine or even jail time.

The good news is that demerit points decrease by one point every three months. This means that drivers can work their way back to zero points over time.

A licence may be suspended twice, but on the third instance, the licence will be cancelled. The person will then have to apply for a new learner’s licence and driver’s licence.

Company vehicles and the Aarto Act

When it comes to a vehicle belonging to a company, the Aarto Act is clear as to how the demerit system will work.

The Act states that companies must keep an accurate record of who the driver of a vehicle is. Should a traffic infringement be recorded, the company must then ensure that the demerits accrue to the correct person, and not the person who is appointed as proxy for the vehicle.

This does mean, that even if you drive a company vehicle, you will also accrue demerit points against your driver’s licence should you incur an infringement.

Although there is no clarity as to how employers will be able to access the point status of employees, the Aarto Act is very clear in that an employer can be held responsible if it allows a person whose licence has been suspended, to operate one of its vehicles.

Concerning the roadworthiness of a vehicle, the company as the owner of the vehicle will be held responsible, and demerit points will be issued against the licence or operator disc of the vehicle.

The vehicle can therefore also accrue demerit points to the extent that it is not allowed to be operated by any person for a stipulated period of time. It is therefore important that the company (as the owner of the vehicle) and the employee (as operator) ensure that company vehicles are roadworthy at all times.

The Aarto Act and your short-term insurance

All companies offering short-term car insurance require that drivers of insured vehicles must have a valid driver’s license. The risk of a client clearly changes if a license is suspended or withdrawn and it will be the client’s responsibility to update his/her insurance accordingly.

This will mean that although short-term insurers – such as PPS Short-Term Insurance – will still insure the particular vehicle, they will not honour any accident or damage claims where a driver of that vehicle was driving while his or her driver’s license was revoked or suspended.

Given the introduction of the Aarto Act, insurers might also consider additional conditions and/or excesses should a driver exceed a certain number of demerit points.

• By Wilma van der Walt, executive: Customer Experience and Operations at PPS Short-Term Insurance

Read: New road laws hit next month in South Africa – these questions still need to be answered

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Driven by strong social pressure to own a vehicle, South Africans can spend as much as half of their monthly salaries on the cost of a new vehicle, forking out an estimated R6,000 per month to finance the average new car over six years, says Tinashe Ruzane, co-founder and CEO of FlexClub.

In 2020, the average price of a new car in South Africa was R321,715, way beyond the budget of the average wage earner without the use of vehicle finance.

The total cost of car ownership is, of course, much higher than this figure suggests – once maintenance, insurance and fuel are factored in, the average new car owner carries a total cost of over R8,000/month, escalating yearly.

As more and more consumers buckle under the pressure of debt, new business models are cropping up that are poised to disrupt conventional car buying. The car subscription model is one of them.

The negative equity trap

Few understand the complexity of vehicle financing or how this multi-billion-rand product manages to remain the dominant driver of car sales in markets like South Africa.

To understand the shortcomings of car loans, we must understand how they work and the role they play in the market.

One of the core strategies of the auto loan industry is to lock consumers into longer contracts to transfer more risk to the customers and maintain the perception of affordability through lower monthly repayments.

It has become increasingly common for South Africans to take six-year car loans to keep up with rising car prices – although most new car buyers never keep a car for much longer than three years.

While longer repayment terms appeal at face value, they saddle consumers with negative equity for longer.

Negative equity is the state one enters when the amount owed to the bank exceeds the value of the car, making it impossible to part ways with one’s car without a large additional payment to the bank.

Higher interest rates, longer loan terms and bigger balloon payments are all factors that can expand negative equity, keeping most car buyers trapped with a perennial debt burden.

The car sales process makes it worse

The negative equity trap is exacerbated by the information asymmetry embedded in the car buying process.

The typical car buyer knows far less than the dealer about how the car will depreciate, what the optimal financing structure for the car should be and what it will cost to keep the car operational during the loan term.

Consumers carry all the risks, while the industry benefits from the unrestrained promotion of precarious car loan terms alongside the sale of the car. Car dealers are well incentivised to perpetuate this distribution model heavily reliant on the sale of car loans.

Once consumers are ready to commit to buying a car, the common practice is to progress the customer to the “Finance & Insurance” leg of the transaction, where the dealers earn most of their money selling car loans and other insurance products.

It’s a no-win situation for many car buyers, who often submit to egregious car loan terms that can overburden them with large balloon payment obligations.

Ill-prepared consumers buying cars in this way should expect to be driven into unfavourable financial positions, particularly if they don’t plan to keep the car for more than six years.

The standard loan terms used in car ads today (usually hidden in the fine print) clearly validates the industry-wide strategy to lure consumers into financing over 6-years with a 35% or higher balloon payment.

Winds of change

The inflection point for the auto industry is upon us. Global online auto retailers like Carvana are upending the distribution model for used cars, whilst brands like Tesla have managed to eliminate the need for a traditional dealer distribution model, now selling all its vehicles online only.

Similar to how companies like Netflix disrupted the distribution models of walk-in video stores and DVD rentals, new business models in the auto industry force a transition away from prioritising unit sales to maximising the consumer experience.

Thanks to the rise of e-commerce and a growing affinity for service-driven business models over product-driven models, “buying” is no longer the unchallenged default. Increasingly, it is access, rather than ownership, that drives consumer spending.

A growing number of consumers around the world are turning to car subscription services to acquire vehicle access and enhance the flexibility of their lifestyles.

Car subscription services are a hybrid between short-term rentals and long-term leases, making it possible for customers to subscribe to a temporary car “ownership” without any long-term commitment and a convenient all-inclusive monthly fee.

On car subscription marketplaces, consumers have access to a range of vehicles, earning reward points for good driving behaviour.

The car subscription model’s strength is its incredible flexibility and diversity of vehicle brands, with a host of vehicle providers able to easily launch all-inclusive subscription offers, giving it broad appeal.

Vehicle financing remains a good product for those looking to keep the same car for 6 or more years. For everyone else, car subscriptions offer a superior hassle-free experience for the modern consumer.

They align perfectly with the demand for flexibility, simplicity and ease of access, offering everything a typical car buyer wants without the sense of encumbrance so common to ownership via debt or as a result of carrying the risk of theft, damage and maintenance.

They are fast becoming a permanent category of automotive retail, poised to grow and hold their own as more consumers look to move away from long-held vehicle financing norms.

• By Tinashe Ruzane is CEO and Co-founder of Flex Club, a car rental platform for ride-hailing drivers that offers them a flexible path to car ownership

Read: New road laws hit next month in South Africa – these questions still need to be answered

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German carmaker Mercedes-Benz Cars says it will invest a further R3 billion into its East London plant in the Eastern Cape, following the launch of production on the New Generation C-Class model in South Africa.

The latest initiative follows a R10 billion investment first announced by the group in 2018, which saw the East London plant go through numerous upgrades in preparation for the production of the new model.

At the launch of production, Mercedes-Benz said it will make an additional R3 billion investment as part of its commitment to the revival of the South African economy, and the socio-economic development of the East London region.

“South Africa is an important location in our global Mercedes-Benz production network. The team in East London made a remarkable contribution to the international ramp-up of the new C-Class that we produce through efficient, flexible, digital and sustainable operations,” said Jörg Burzer, member of the board of Mercedes-Benz Cars, responsible for production and supply chain  anagement.

“With our additional invest of R3 billion in the East London plant, we underline our commitment to contributing to the South African economy and the Eastern Cape region.”

Minister of Trade, Industry and Competition, Ebrahim Patel, said the investment positions Buffalo City and the rest of Eastern Cape to continue its legacy of advanced manufacturing.

According to Mercedes-Benz, the R10 billion investment announcement in 2018 was used for a wide modernisation of the East London Plant – including a new Body Shop, which has been designed for higher capacities and features more than 500 “Internet of Things” Industry 4.0-enabled robots.

To date, all buildings are complete and the group said it is ready for the production of the new generation C-Class in full force.

Read: SAB ‘reinstates’ R2 billion investment in South Africa – but warns against alcohol bans

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The guidelines for competition in the South African automotive aftermarket come into effect on 1 July 2021.

In anticipation, the Competition Commission recently hosted a workshop to discuss what the guidelines mean for consumers and other industry participants.

The guidelines are the outcome of more than a decade of complaints received by the commission from independent service providers (ISPs) and other industry players about exclusionary conduct at all levels of the automotive aftermarket supply chain, said legal firm Bowmans.

They aim to provide guidance for the automotive aftermarket industry and are intended to promote inclusion and to encourage competition through greater participation of small-and-medium-sized businesses (SMEs) as well historically disadvantaged persons (HDPs). The guidelines do not, though, have the force of law.

Below Bowmans provided an overview of the commission’s workshop and what the changes will mean for drivers.

What the guidelines mean for consumers

The guidelines aim to increase consumer choice. Once in effect, they will permit consumers to repair their motor vehicles at service providers of their choice.

Moreover, consumers will be able to choose whether to fit original or non-original spare parts to their vehicles and will be able to source these spare parts from ISPs of their choice, regardless of whether their vehicles are under warranty or not.

“Whilst consumers are afforded increased choice, the commission cautioned that consumers ought to still be aware of the potential risks involved with maintenance and repair work by a third-party ISP, and in particular, the risk that certain provisions of the warranty on the motor vehicle may become invalid or void in circumstances where the selected ISP is found to be at fault,” Bowmans said.

“The commission reminded consumers that where disputes arise with their service providers, dealers or insurers, they should approach the relevant complaints department at the dealer or OEM and follow the internal complaints procedures.”

If no resolution is found, recourse may be had to the Motor Industry Ombudsman of South Africa (MIOSA).

Where conduct is potentially in contravention of the Competition Act, consumers may also approach the commission directly. Where appropriate, relief may also be sought from the National Consumer Commission.

Participation and lower barriers to entry for SMEs and HDPs

One of the key objectives of the guidelines is the need to promote the entry and participation of SMEs and HDPs in the automotive aftermarket.

The guidelines seek to achieve these objectives by encouraging stakeholders in the industry to adopt measures to facilitate the:

• Increased entry, promotion and support of SMEs and HDPs as approved dealers;
• Dispensing of the practice of OEMs entering into exclusive agreements with motor-body repairers;
• Ensuring that ISPs can undertake in-warranty service, maintenance and repair work; and
• Ensuring the fair allocation of work by insurers to service providers on insurance panels, with no service provider serving for more than five years on a panel.

Going forward

Although the guidelines do not constitute binding law, the commission was clear that they reflect the policy position of the commission regarding what would be considered anti-competitive in the industry going forward, said Bowmans.

“The commission also noted that it is interested to see how the industry will implement the guidelines in everyday practice and that it will be conducting periodic assessments to monitor compliance with the guidelines.

“Practically, this means that the commission will meet with, and obtain information from, relevant stakeholders in the industry to determine how the industry is applying the guidelines.”

How the application of the Guidelines will unfold is – of course – not certain.

Industry players may need to adopt purposive interpretations in certain instances where compliance is commercially impractical, Bowmans said.

“To this end, it is not implausible that the guidelines may evolve over time based on experience and application.

“The key message though is that transformation should be fostered in the value chain, with the various key players spearheading initiatives to do so.”

Commentary by  Judd Lurie, Nazeera Mia, Sian Fagan and Aneesa Ravat of law firm Bowmans.

Read: Mercedes announces R3 billion investment for East London plant

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The Department of Transport has committed to the phased rollout of the Administrative Adjudication of Road Traffic Offences (Aarto) from Thursday (1 July), but there is a lack of clarity around the new system and exactly what will be implemented.

The Aarto will penalise drivers and fleet operators who are guilty of traffic offences or infringements by imposing demerit points that could lead to the suspension or cancellation of licences, professional driving permits or operator cards.

It will also encourage the payment of fines and reduce the burden on South African courts, by removing the initial option to elect to appear in court.

The wide-reaching nature of the rules and demerit system will fundamentally change driving in South Africa, with concerns that there are no details around the system just two days out from its supposed launch.

While transport minister Fikile Mbalula has previously committed to a July start date, as of Tuesday morning (29 June) no gazette or announcement has been published by his department or other transport authorities regarding the implementation of the new rules.

In response to queries, a spokesperson from the Road Traffic Infringement Agency (RTIA) said that preparations for the Aarto are still underway and that a number of issues are still being considered by the relevant authorities.

An announcement would be made either on the day or close to it – but it was not possible to provide further details at this time, he said.

Not happy 

Civil society and motoring groups are not happy about the lack of clarity and say that the new rules will almost certainly fail.

Outa said that the rollout has not been properly planned, there is a pending legal challenge against the system due in court in October, and the agency charged with implementation has refused to provide any information on readiness.

The group noted that the system also does not have an official start date – despite statements made by the government.

“The legislation which sets up the driver’s licence demerit system has not yet had an official start date gazetted.

“This means if it is expected to start on 1 July 2021 as Minister of Transport Fikile Mbalula has previously claimed, it will be a last-minute authorisation,” it said.

“Last-minute is not the way to start such a complicated and bureaucratic process, particularly as this relies heavily on failed systems like municipalities.”

The group added that the planned demerit system was set up in the Aarto, but that section of the Act was never rolled out, with no clarity as to when this will be introduced.

No communication

Similar concerns have been raised by the Automobile Association (AA), which says too many questions remain unanswered.

The association said among the issues which have not been clarified is whether or not motorists will, from 1 July, be receiving Aarto infringement notices, or if they’ll still be receiving the standard fines as is the case currently.

The AA noted that the last public pronouncement on Aarto was on 19 May 2021 when the director-general of the Department of Transport, Alec Moemi, briefed the National Council of Province’s Select Committee on Transport, Public Service and Administration, Public Works and Infrastructure about the Department of Transport’s Annual Performance Plan.

During that briefing, Moemi said phase one of Aarto would commence on 1 July. There will be five phases in total, he said.

According to the DG, phase one entails “setting up the registry and all requirements, ultimately working towards the introduction of a demerit system”.

However, the AA is it remains unclear what this exactly means, or if this means Aarto will be implemented come 1 July at all.

“Communication on the roll-out of Aarto appears to be happening in the media with the Department of Transport not speaking on the matter at all,” the association said.

“All of this is creating huge confusion among motorists throughout the country who are unsure if the legislation is or is not coming into force next month.”

Also of concern is that no timeframes have been listed for the completion of phase one, what the other phases of the roll-out entail, and what timeframes have been set for their initiation and completion, it said.

“Within this context motorists are being told that Aarto will be ‘implemented’ on 1 July, with few people, if any, any wiser as to precisely what’s going to happen. Not only is this unfair on motorists, but it again casts doubt over the RTIA’s ability to effectively implement the system once it actually becomes law,” the AA said.

Read: Mercedes announces R3 billion investment for East London plant

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The National Taxi Association (NTA) says that it will disobey South Africa’s new Administrative Adjudication of Road Traffic Offences (Aarto), as well as the introduction of the country’s new demerit system.

The Aarto will penalise drivers and fleet operators who are guilty of traffic offences or infringements by imposing demerit points that could lead to the suspension or cancellation of licences, professional driving permits or operator cards.

It will also encourage the payment of fines and reduce the burden on South African courts, by removing the initial option to elect to appear in court.

The association told The Star that the department of transport has been quiet about the introduction of the Act and that the demerit system was plagued by loose ends.

It added that the taxi industry would not comply with the new law and that the industry does not have the resources to comply with the new system, which will require it to vet its drivers.

The association said that the system was a disaster for taxi owners, who could lose their licences should their drivers receive demerits for offences on the road.

No clarity on launch yet

While transport minister Fikile Mbalula has previously committed to a 1 July start date, as of Wednesday morning (30 June) no gazette or announcement has been published by his department or other transport authorities regarding the implementation of the new rules.

In response to queries, a spokesperson from the Road Traffic Infringement Agency (RTIA) said that preparations for the Aarto are still underway and that a number of issues are still being considered by the relevant authorities.

An announcement would be made either on the day or close to it – but it was not possible to provide further details at this time, he said.

Civil society and motoring groups are not happy about the lack of clarity and say that the new rules will almost certainly fail.

Outa said that the rollout has not been properly planned, there is a pending legal challenge against the system due in court in October, and the agency charged with implementation has refused to provide any information on readiness.

The group noted that the system also does not have an official start date – despite statements made by the government.

“The legislation which sets up the driver’s licence demerit system has not yet had an official start date gazetted.

“This means if it is expected to start on 1 July 2021 as Minister of Transport Fikile Mbalula has previously claimed, it will be a last-minute authorisation,” it said.

“Last-minute is not the way to start such a complicated and bureaucratic process, particularly as this relies heavily on failed systems like municipalities.”

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Despite being set to launch on 1 July, details of the planned roll-out of the Administrative Adjudication of Road Traffic Offences (Aarto) are still lacking.

It is now becoming increasingly urgent for the government and the Road Traffic Infringement Agency (RTIA) inform the public of exactly what the process will be, says the Automobile Association of South Africa (AA).

The association said too many motorists are in the dark as to what will happen on 1 July – if anything – and how the introduction of the system will impact them.

The RTIA is the agency that administers Aarto and will also house the Aarto Appeals Tribunal which will adjudicate challenges motorists have to infringement notices issued to them.

“We raised concerns earlier this month about the lack of information and the exact timeframes for the implementation of Aarto. While there has been some reporting on the phased approach which will be followed, this has not been widely communicated to the public by the RTIA.

“Individuals and businesses are rightly concerned because Aarto will have an impact on them, especially on businesses as the costs of compliance with the system will be high,” said the AA.

To address some issues raised by members concerning Aarto, the Association has published a summary for all motorists.

“In October last year, we raised our concerns that Aarto does not support the government’s stated intention of promoting road safety but that it is instead a more effective mechanism for revenue collection.

“We raised these and other concerns in our submission on the proposed amendments to the Aarto regulations. Sadly, there has been no clarification on the final Aarto Act, and motorists throughout the country are still unsure of what will happen come 1 July,” the AA said.

You can find the full summary below.

Read: South Africa’s new driving laws are supposed to come into effect this week – but there are problems

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