On February 11, the government unveiled public transport subsidies in its revised budget for the fiscal year 2020/21. The Rwf29.3 billion is intended to offset the losses incurred by public transport operators, according to the Minister of Finance and Economic Planning, who virtually presented the budget to both chambers of parliament. His argument is that due to the Covid-19 restrictions, buses are obliged to not carry more than 50% of their passenger capacity. Therefore, the investors deserve compensation for this loss of potential revenue. It makes both social and economic sense. We must recall that since the outbreak of the Covid-19 pandemic public buses have either been forced to operate below their capacity or grounded as the country desperately searches for the best solutions to this wrecking virus. When Rwanda Utilities Regulatory Authority (RURA) attempted to increase transport charges in December last year, the public was outraged. The embattled commuters turned to social media platforms to protest the decision. Their protest was justified. The transport charges had been introduced just a few months after the first Covid-19 lockdown. With slow business activity, loss-making firms had laid off their staff, while others were forced to take pay cuts. In addition to this financial distressed, some members of the public were anxious due to the fear of contracting the virus (some still do). Others have battled and overcome the virus, while some have seen their loved ones succumb to it. The Prime Minister intervened and RURA proposed public transport fares were reversed. Now, in the case where transport fares are not raised to cater for reduced passenger numbers, the operators are plunged in losses. The risk was that they could potentially park their buses. With some servicing loans, default would attract the attention of court bailiffs to help banks recoup their money. In the end, wed all lose. It’s hard to imagine a scenario where we’d have stranded commuters and investors out of business, with a host of jobless people who used to work in the public transport business. So the government subsidies are important and timely. These are hard times for everyone and any subsidy or form of support that directly trickles down to the ordinary person is commendable. But even without the pandemic, a well-functioning public transport system is a critical aspect of our economy.
