Liberalization of public transport set to increase competition

The government has licensed 14 companies and four individuals to operate public transport on various routes in the City of Kigali, including newly unveiled routes, breaking a monopoly that only four companies have enjoyed for a long time at the expense of better passenger services. The move to open up the public transport sector, which was announced on Tuesday, March 12, by the Ministry of Infrastructure, is set to foster competition amongst different players and ultimately lead to better transport services. According to Jimmy Gasore, the Minister of Infrastructure, the decision to liberalise the sector is aimed to enhance service quality. It was noted that limiting public transport to only three to four companies stifled competition, which in turn affected service quality, he said. ALSO READ: Public transport fares to increase after govt scraps subsidies Previously, the routes were monopolized by up to four companies, with each company having the exclusive rights to operate a specific route. Beata Mukangabo, General Manager of Transport Regulation Department at Rwanda Utilities Regulatory Authority (RURA) said that introducing more operators would foster competition, adding that with multiple operators vying for the same routes, each would strive to ensure a return on investment, which will eventually benefit passengers. She said the City of Kigali has issued a call for more investors, encouraging both companies and individuals to participate. ALSO READ: City of Kigali opens new public transport routes While the current focus is on Kigali, Mukangabo said the aim is to enhance public transport across the entire sector to ensure satisfactory service wherever public transport operates. Currently, intercity bus services are already open. You will not see any route which is exclusively operated by one operator,” Mukangabo said, adding that a focus is being given to the City of Kigali to address the current challenge of delays on the routes. “We are also looking at the entire sector to make sure that wherever there is public transport, everyone is happy with the service they receive,” she noted. ALSO READ: 100 new buses start operations in Kigali Godfrey Nkusi, CEO of Rwanda Interlink Transport Company (RITCO), a newly licensed commuter for routes within Kigali, indicated that competition in public transport would lead to better and efficient services for passengers. “Formerly, the sector was monopolised by a single company per route. The introduction of multiple operators will allow for innovation, enhance service quality, and customer care in general,” he said. Nkusi commended the liberalisation of public transport and the introduction of new buses. However, he underscored the need for infrastructure development, particularly road expansion, and the mitigation of traffic congestion. He also called for the implementation of rapid transit systems in high-demand areas to alleviate passenger congestion.

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Liberalization of public transport set to increase competition