A framework for understanding the formalization of informal transit and its application to South Africa since the 1970’s

Public transport in much of the global south is dominated by informal transit despite many initiatives to introduce formal services. This resilience is leading to a shift in strategy from seeking to replace it, to improving it by ‘formalizing’ it. However, success has been quite limited thus far, often because of a rudimentary understanding of the process of formalization. This paper seeks to convey a more nuanced understanding of formalization by identifying five discrete levels of formalization on a continuum from very simple and informal, to more structured forms of industry organisation. It then uses this framework in describing the development of the South African paratransit sector since the 1970’s. The paper concludes by arguing that the scale of urban population globally that is dependent on informal transit makes this a critical area of work; that progress requires working in partnership with the existing industry; that reform strategies must start with a detailed understanding of the dominant business model and must respond to the significant variation in current levels of formalization within and amongst countries; and that regulation is key both to optimizing productivity and service quality at each step in the continuum.