Compromise vital in decision making

A recent directive by transport authorities — banning commuter transport vehicles from conducting any other business — has raised dust among operators.

Thursday, October 25, 2012

A recent directive by transport authorities — banning commuter transport vehicles from conducting any other business — has raised dust among operators.While the idea of streamlining the transport sector is commendable, some unilateral decisions, however well-intended, are likely to cause more harm than good.An example is a contract that owners of vehicles have to sign; "…No other deals; be it weddings, temporarily working with other transport agencies, transporting any staff or students in case that person has an agreement with RFTC, except if they have written authorisation from RFTC,” reads article six of the contract. Now, that is taking it a bit too far and overstepping the mark.The government cannot satisfy public transport on its own, that is why the public sector stepped in to ease the burden. Transport companies are not charitable organizations, they are there to make a profit through legal means.Most have taken out bank loans to run their operations, so, if business is slow in one area; it is only common sense to seek a solution elsewhere, like hiring out their vehicles in order to meet their loan obligations.Putting a caveat on private property is not only detrimental to a free and friendly business environment, it is also discouraging to potential investors in the sector. Churning out directives and counter orders, without consulting and agreeing with all stakeholders, is not bound to auger well for the sector.Rwanda Development Board (RDB) and the Private Sector Federation – the champions of free, vibrant and friendly business environment - the ball is in your court.