Competition Reforms in Bus transport sector
In Zambia
National Advocacy Plan (CREW Project)
CREW NRG-IV Meeting, 22nd April, Lusaka
Outline
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Policies assessed under CREW Project
Bus Transport Sector in Zambia- Current Situation
Emerging Issues
Work Plan & Envisaged outcome
Expectations from NRG Members
Competition Reforms / Policies assessed under CREW
Project
• Following intense review and analysis of competition reforms in the passenger
transport sector in Zambia, the following components of competition reforms
were identified for purposes of the CREW study:
• Transport Liberalisation Policy;
• Road Traffic Regulations;
• Transport Infrastructure ;
Bus Transport Sector in Zambia
• Current Situation
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The National liberalisation Policy- enabled the GRZ develop a free market
economy and an efficient transport system that would facilitate positive
economic growth
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The tax concessions under the NTP 2002 encouraged more private sector participation.
There is no government involvement.
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Resulted in a growing bus market and improved availability of buses for consumers
• The RTA 2002 provides a regulatory scope for the bus transport sector and
establishes RTSA
• RTSA is the regulator and implementer of the RTA with the function to register
and license vehicles, set fares, set standards for road safety and promote
competition.
• The fare setting process is an area of concern as it is done on an ad hoc basis and
is largely based on SH interaction without a clear scientific basis
Bus Transport Sector in Zambia
• The method of selection of SH is based on the judgement of Ministry of
Transport & RTSA alone
• Quality Control: Lack of coherence between the fares vis-à-vis the quality of the
service. Absence of a proper mechanism to make operators compete on quality
• The ‘first come first load’ principle at bus termini does little to give incentives to
operators to invest in quality as they are assured of patronage regardless of the
condition of the bus.
• Average Zambian spends 20% of monthly expenses on public transport but the quality of
services is appalling
• Need for standard to ensure good quality inside buses
• Low accountability of bus operators: Gap in transport availability on nonprofitable routes and off peak hours
Emerging Issues
• There is need to relook at the fare setting process, by coming up with scientific,
inclusive and transparent fare-setting process
• The fare formula has not been revised in Zambia for many years now
• The bargaining power and influence of operators prevail with little incorporation of
consumer interests
• Study has revealed that An average commuters spends about 8.6 % of income on
transport.
• Low access to passengers on less lucrative routes. lack of route rationalisation
unequal distribution of routes
• Operators are free to operate on any route even though restriction is based on type and
quality of bus at intra-city and inter-city level
• Absence of a proper mechanism to make operators compete on quality. The
quality control system for public buses needs to be enhanced to ensure that only
buses of good quality are allowed on the roads.
• Majority of the commuters interviewed (about 62.5 %) indicated that the trip which they
had just taken was very uncomfortable. This was mostly attributed to overloading (72.3 %)
and uncomfortable seats (9.2 %).
Work Plan & Envisaged Outcome
• Key Issue: There is need to review the
fare setting process with the
objective of balancing consumer and producer interests
• Conduct an analysis of ‘good practices in transport price regulation from across
various countries,’ covering the issues of fare regulation.
– Use evidence from analysis to influence and get buy in from policy makers and key stakeholders
– Facilitate knowledge exchange platforms by brainstorming on specific issues (eg. fare regulation
etc.) and understanding country level bottlenecks to balance impact on consumers and
producers.
– Make fare setting process for urban city transport scientific, inclusive and transparent
How will the CREW Project Contribute: Conduct an analysis of ‘good practices
in transport price regulation from the across project various countries. This
would be a point of engagement with parliamentarians, key stakeholders and
policy makers to share some of the good practices that may apply to the
Zambian scenario
Work Plan & Envisaged Outcome
• Key Issue:
Need for enhancing bus availability and equitable distribution of
bus service for consumers within Lusaka city
• Intentions to implement a route allocation policy to enhance the quality of
passenger transport in Lusaka through the LCC have been in the pipeline,
however, the initiative has stagnated at plan level only and no implementation
has been carried out.
– Research on politico – economic constraints on route allocation in Lusaka (both secondary and
primary)
– Dialogues with the relevant stakeholders (policymakers, regulators, operators etc.)
– Appreciation of route rationalisation at policy level
How we hope CREW will Contribute: Interactions with the stakeholders
during the course of the project revealed that the above mentioned initiatives
have stagnated thus through a political- economy analysis, we would be able to
undertaken to understand the reasons for non-implementation
Work Plan & Envisaged Outcome
• Key Issue:
Need to have some standard to make the bus service
comfortable and safe for the commuters.
• Improved standard for bus service in Lusaka (vis-à-vis occupancy and seat
– Prepare a discussion paper on the need to come up with Standards to make the bus service
comfortable and safe for the commuters
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Initiate discussions on this issue and chart a best way forward.
– Creating a demand for having better service standards for buses in Lusaka through media
campaign and stakeholder interaction.
How we hope CREW will Contribute: - Creating a demand for having
better service standards for buses in Lusaka through media campaign based on
interactions with relevant stakeholders.
Thank you…