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Maputo Bus Cooperatives - Context and the way ahead : Technical Note II (English)

The population of Greater Maputo increased by 60 percent between 2007 and 2017, from 1.9 million to 3.1 million and is expected to increase to almost 4.0 million by 2035. The growing population has placed increasing pressure on municipal infrastructure, including transport services. Over the years, with a gradual decline in the state provided services, the private minibuses have emerged as the main form of motorized transport. However, the financial crisis in 2016 led to the elimination of fuel and bread subsidies, which seriously impacted the financial viability of informal bus operators. As a result, services deteriorated and private operators further compromised on service quality which led to overcrowding, poor maintenance and increase in accidents. In addition, “illegal” transport gained ground among people struggling to get to jobs and perform daily functions, resulting in an increase in unregulated supply, further contributing to congestion, accidents, and worsening pollution. The paper lays down the critical requirements for effective transitioning to a corporate structure, focused on: a) critical to have a competent, strong and well-resourced regulatory body; b) need to graduate from atomized single-owner operations to collective ownership structure, professionally managed and following corporate business practices; c) need to put in place a performance monitoring regime; d) need to set the fare structure to ensure financial viability of bus operations in a regulated environment; e) allocate risks to the public and private sectors where they are most able to address those risks.

Details

  • Author

    World Bank

  • Document Date

    2022/06/23

  • Document Type

    Report

  • Report Number

    172961

  • Volume No

    1

  • Country

    Mozambique,

  • Region

    Eastern and Southern Africa,

  • Disclosure Date

    2022/06/23

  • Disclosure Status

    Disclosed

  • Board Meeting Date

    2022-06-23T00:00:00Z

  • Doc Name

    Maputo Bus Cooperatives - Context and the way ahead : Technical Note II

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Citation

World Bank

Maputo Bus Cooperatives - Context and the way ahead : Technical Note II (English). Washington, D.C. : World Bank Group http://documents.worldbank.org/curated/en/099420006232252168/P17104801d222f0e30960002298bf571226