The taxi, which appears to be a minibus from pictures, was pushed against a tree and several passengers were trapped inside. A large rescue team is working at the scene to free the injured.
Garrith Jamieson, spokesman for the emergency services, described the situation as chaotic.
At this point, authorities have confirmed that eleven people have died and about eight others have suffered serious injuries and are being treated at nearby hospitals, Jamieson said, according to the news site News 24.
Isipingo is south of Durban.
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