The deal is one of the ways the taxi industry is spreading its wings into the broader economy. The industry is looking at other opportunities in which it can get a stake in operations involving the industry.

This includes the empowerment stake that the taxi industry could get in the electronic management system that would be fitted to a recapitalised taxi fleet. Government and Santaco have agreed on a minimum of 25,1% equity ownership of the system for Santaco, and the shortlisted bidders are still to respond to the request.

According to acting Transport Minister Jeff Radebe, the first new vehicles will be on the road towards the end of June, after the winning bidder or bidders for the manufacturing tender are announced.

Under the agreement, a new property holding company called Santaco Property will be formed in which the taxi industry will hold a majority share.

"Taxiprop-BR has offered Santaco a substantial portfolio of properties, which has been developed to an advanced stage over a period of time," said the council's president, Thomas Muofhe.

"This will rapidly advance and help achieve the property development, investment and ownership aims of Santaco."

There are two categories of developments: those that are strategically placed at high-density transportation nodes, and those in large townships where there is a lack of infrastructure.

The developments will offer retail shopping space, financial services and banking facilities, semiformal retail space, and vehicle dealerships and service facilities.

Muofhe said that according to the agreement with Taxiprop-BR, the taxi industry would hold the majority share in the properties once they had been constructed. The industry would pay for its share of ownership from the proceeds of income from the centres.

"Ownership is one of the cornerstones of economic empowerment of the taxi industry," Muofhe said.

Taxiprop-BR shareholders are Taxiprop Development, an empowerment property development company; construction company Basil Read; and Ulutsha Development Projects, a women's empowerment group focused on infrastructure and development projects.

Taxiprop-BR CEO Kevin Williams said the company had identified 50 sites to be developed over the next 10 years. The first five sites to be developed this year are the Bloed Street taxi rank in Pretoria, Randfontein, Wynberg in Cape Town, and Umtata and Mount Frere in Eastern Cape.

Williams said there was commercial potential in these developments, and this would create an opportunity for retailers to access the emerging SA market.