What Is the Government’s Income from Driver’s Licenses?

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DUDU RAMELA: Let’s get into it. The fees for driving licences are currently being reviewed, focusing on the revenue models of the Road Traffic Management Corporation [RTMC] and the viability of the technology used for card production.

We have Rob Handfield-Jones, managing director of driving.co.za, here to explore this issue further. Thank you for being with us this evening, Rob. Let’s begin with the fundamentals.

Are we still dependent on a single printing machine for all the driving licence cards in South Africa?

ROB HANDFIELD-JONES: Good evening, Dudu. Yes, that appears to be the case. The machine is believed to be over 15 years old, leading to frequent malfunctions, which is why we experience the backlogs reported in the media.

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DUDU RAMELA: So, we rely on one printing machine. If you’ve recently renewed your driving licence, you’ve likely paid between R200 and R300. What happens to that money?

ROB HANDFIELD-JONES: The fee is divided into two components: one portion is the actual licence fee that contributes to some revenue, while the other is the RTMC transaction fee, currently R72, which goes straight to the Road Traffic Management Corporation.

DUDU RAMELA: How many driving licences are registered at the moment?

ROB HANDFIELD-JONES: It’s important to clarify that we are not only discussing driving licences but also vehicle licences. According to the eNaTiS [National Tracking Information System], there are 13.5 million vehicles on our roads that require yearly licence renewals, expected to generate around R970 million in transaction fees.

Additionally, the RTMC mentioned that by last year, about 16 million driving licences were active. However, some individuals have multiple licences, such as for cars and bikes. This leads us to an estimate of around 12 million driving licence cards that need renewals every five years.

This brings us to approximately R172 million annually in transaction fees.

Interestingly, the RTMC’s annual report showed they collected R948 million in transaction fees last year.

This suggests that the actual number of driving licences in use may be lower than my estimate, or that a significant number of vehicles aren’t being re-registered as they should be.

Nevertheless, R984 million is a significant sum for the RTMC while providing no evident value to society.

The main concern is that the government seems reluctant to give up this revenue stream.

DUDU RAMELA: You stated that you believe the RTMC offers no value. Can you elaborate?

ROB HANDFIELD-JONES: It genuinely lacks value. The RTMC was set up to oversee road traffic, emerging from the Department of Traffic Safety in 1998. This department famously reduced traffic accidents by half in 15 years, making 1998 the safest year for roads.

However, by eight years later, the fatality rate doubled, and proxy data suggests it may have doubled again since.

The RTMC acts as a significant revenue generator while failing to effectively improve road traffic safety.

DUDU RAMELA: What options do we have?

ROB HANDFIELD-JONES: There are numerous alternatives to explore in road safety.

When it comes to the RTMC, reverting to a former model of road safety management—operating on a strict budget by professionals who achieve results—would be essential.

Those who remember the effective National Road Safety Council campaigns know they greatly reduced road fatalities. That’s just one aspect of road safety.

Read: Youth bear the brunt of road carnage, says RAF

As for licensing and associated costs, the government is attached to outdated document production because it’s extremely profitable, raking in nearly a billion rand each year.

The pivotal question remains: why, in 2025, do we still need physical tokens for driving and vehicle licences?

All underlying records are digital—it’s been that way on e-NaTIS since 2008. Instead of holding onto antiquated tokens, we should empower law enforcement with technology to verify drivers through fingerprints and vehicles using number plate data—this is a modern approach.

DUDU RAMELA: A digital system would indeed be cheaper to manage. Would it also reduce costs for individuals?

ROB HANDFIELD-JONES: Absolutely. We wouldn’t need to renew vehicle licences annually, as this could be automated in the system. We might pay a minimal tax, but the transaction fee would be eliminated. Additionally, we wouldn’t have to renew our driving licence cards every five years because there wouldn’t be any cards at all.

Read: Driver’s licence cards to be valid for eight years

If stopped by police, you would simply provide your thumbprint, similar to the process at Home Affairs, allowing for immediate verification of your driving licence status and endorsements. They could also use automatic number-plate recognition technology to check whether a vehicle’s licence is current.

All this technology exists, and the digital infrastructure is in place. The pressing concern is why the government hasn’t moved in this direction.

DUDU RAMELA: With R984 million being generated and your assertion that we’re not receiving value from the RTMC, we will indeed reach out to them for feedback. Some might argue that this money is directed towards maintenance.

It’s possible that traffic lights malfunction, and the RTMC may claim it allocates funds to maintain or repair them across South Africa. They could argue that the money is being spent wisely.

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What can we conclude? Is it just a funding source?

ROB HANDFIELD-JONES: We need to distinguish the sources of revenue.

The RTMC’s mandate is to manage road traffic, as their name suggests.

They should not operate as a revenue-generating entity for the state; that responsibility lies with the taxpayer. If the government needs more funding, they should transparently engage with taxpayers and recognize the potential electoral repercussions of that decision. That’s the essence of our democratic process, and fundraising in a democracy should operate accordingly.

However, traffic management isn’t responsible for fixing potholes.

Such tasks usually fall to local or provincial authorities. Likewise, funding for traffic lights comes from various sources: rates, taxes, and treasury allocations for provinces. These are matters of taxation.

The key focus remains on enhancing road safety, boosting enforcement capabilities, and tackling areas where the government has faltered.

DUDU RAMELA: Thank you for sharing your thoughts with us this evening, Rob. Rob Handfield-Jones is the managing director at driving.co.za.