South Africa relies on a single machine to produce driving license cards, which is downright ludicrous. In November 2021, an electrical fault caused the machine to break down. Repairs took two months, increasing the license backlog by over a million.
Officials claim that limiting production to one machine prevents fraudulent licenses from flooding the country. However, this aim has already failed. Fake licenses are widespread on South African roads. Some drivers do not even obtain fake licenses, they drive without any license.
How corruption undermines licensing production
Enforcement is so weak that authorities cannot estimate the number of unlicensed drivers. By their nature, such offenders remain unregistered and uncountable.
Having one machine does not prevent the spread of illegal drivers. Instead, it may encourage a market for fake licenses. If the goal is to reduce fake licenses, this system fails dismally. Maintaining one outdated machine increases breakdown risks and creates massive backlogs.
South Africa must privatise and decentralise the driving license system. This approach may lead to corruption, but the current system already enables corruption. Holding back progress to prevent crime ultimately harms the entire country.
The need to privatise driving license productionÂ
Public-private partnerships have already proven effective. Allowing banks to issue IDs and passports improved service quality and reduced waiting times.
A similar system for driving licenses could offer the same benefits. Currently, a private company produces licenses, yet corruption persists. The tender process excluded qualified candidates for petty reasons and enabled favouritism.
Even without corruption, outsourcing one company to produce licenses creates a monopoly. Monopolies have no incentive to perform efficiently because they lack competition.
Decentralisation as the path forward
To resolve this issue, South Africa must introduce multiple producers competing to produce licenses. Each province or municipality should have its own production machine. Linking these machines to a secure digital registry, like the smart ID system, will prevent fraud.
The system can generate secure barcodes tied to individuals’ ID numbers. These codes ensure the license’s validity regardless of the physical card.
Traffic officers should use mobile apps to scan barcodes and verify driver identities. This shift places fraud prevention on technology rather than physical cards. Advanced technology already exists and functions in other sectors of society. South Africa must avoid tendering processes, which encourage corruption and favouritism.
Any company registered with the traffic department should receive access to codes for license production. If implemented correctly, this system could eliminate backlogs within days. Moreover, it would prevent future backlogs entirely.
Nicholas Woode-Smith | Senior Associate | Free Market Foundation | mail me |