Private transport companies in Rwanda find themselves once again in financial turmoil as the government prolongs the disbursement of subsidies, leaving approximately 26 companies anxiously waiting for over Rwf24 billion pending for five months.
The Association of Public Transporters (ATPR), JALI TRANSPORT, RITCO and
RFTC COOPÉRATIVES have penned multiple letters to the government, seeking clarification on the delayed funds, but their pleas have fallen on deaf ears, intensifying distress among these companies.
Despite grappling with financial strain and the imminent risk of grounding buses due to budget constraints, the transport companies have been met with governmental silence.
This predicament is exacerbated by the recent allocation of over Rwf24 billion last month for the purchase of new buses, prompting questions about the financial constraints cited in disbursing subsidies to the struggling transport sector.
Representing 26 companies operating across Rwanda, with over 1,000 buses and coasters and employing about 5,000 staff, the transporters had earlier written to President Paul Kagame, urging the government to fulfill its commitment to offering subsidies to transport companies affected by Covid-19 under the economic recovery fund.
Anonymous sources within the ATPR express frustration, stating, “The default contradicts government promises to support the private sector. It also makes the government look bad when it comes to bus companies, as they are otherwise compliant with regulations.”
The ongoing delay in subsidy disbursement has left these companies in a precarious position, with some already grounding buses and contemplating downsizing their fleets and workforce.
The subsidy was intended to support bus companies from the effects of Covid-19 and also to provide a top-up to passengers, relieving them of the burden of increased bus fares.
The failure to honor this commitment for the third consecutive time raises serious concerns about the government’s support for the private sector and the impact on the livelihoods of those employed by these transport companies.
As the Regulatory Board of the Rwanda Utilities Regulatory Authority (RURA) oversees the financial support for public transport passengers, the challenges persist, leaving the fate of these transport companies hanging in the balance.
This marks the third instance where bus companies have waited for more than three months for subsidy disbursement, underscoring the urgency of addressing the financial plight of these crucial players in the transportation sector.
The government’s repeated delays not only jeopardize the financial stability of these companies but also cast doubt on its commitment to fostering a thriving private sector and upholding promises made during the challenging times brought about by the Covid-19 pandemic.
Officials have consistently been noncommittal when sought to comment on the matter.
