A taxi owner has been shot dead and his ANC councillor passenger wounded while driving in a bakkie near Scottburgh, KwaZulu-Natal police said on Wednesday.

Captain Vincent Pandarum said taxi owner Zethembe Mhlungu, 36, and Hlokozi ward councillor Nompumelelo Joyce Jili, 55, were shot at from a passing vehicle on Tuesday evening.

"It is alleged that Mhlungu was on his way home from the Highflats village when he stopped to talk to someone on the Hlokozi main road.

"A silver grey hatchback BMW... with unknown occupants approached from behind and passed the bakkie.

"Shortly afterwards, the BMW returned from the opposite direction and as it passed alongside the bakkie, the occupants opened fire, hitting both victims several times," he said.

Mhlungu died on the scene. A passerby took Jili to hospital, where he was in a critical condition.

The motive for the shooting is not known. A number of 9mm pistol and R5 rifle spent cartridges were recovered.