EDITORIAL: Does Onatracom deserve a last chance?

For many years now, Rwanda’s public transport company, Onatracom, has slowly but surely continued its downward plunge towards extinction.

Sunday, February 22, 2015

For many years now, Rwanda’s public transport company, Onatracom, has slowly but surely continued its downward plunge towards extinction.

For decades it served the most remote areas of the country where private transport companies were reluctant to ply as there was not much profit to be made from those routes.

This could partially explain the huge losses registered by Onatracom, but it was serving a public service of removing remote areas out of isolation. Whatever the reasons, the loss should lie squarely on the laps of its past management as well as lax controls by relevant government departments as the company’s parking yards slowly degenerated into a vehicle graveyard.

Now the idea being mooted is calling in private investors to keep the company afloat. But will private investors serve the primary purpose of plying the most inaccessible areas and yet make a profit?

Whatever is contemplated, public service should feature prominently in the business plans of whoever comes to its rescue. But before that decision is made, Onatracom deserves at least a last chance, with more cash injected into its operations, new and modern financial and management controls instituted.

Right now, Onatracom is just a shell, which is why investors who had shown interest pulled away. It can only attract suitable suitors if its financial health is revived.

Even if the government gets a new investment partner, it should also come up with plans to subsidise possible loss of profits due to taking on some unattractive but necessary routes. That way, it will be a win-win situation for all; investors would be assured of recouping their money and the general public served at the same time.