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Investors want transport policy passed

Friday September 21 2012
bus

Kigali Bus Services buses at a terminus. The transporters are demanding inclusion of incentives in the proposed policy to encourage more investments into the sector. Photo/CYRIL NDEGEYA

The woes of public transport users are set to deepen, following delayed enactment of a policy to regulate the chaotic sector.

The policy, which is expected to streamline the sector is still pending before the Cabinet.

So chaotic is the sector, that some industry players have been forced to withdraw their vehicles until the policy is passed.

Industry players who spoke to Rwanda Today also want the policy to stipulate incentives they are entitled to like other investors.

“We are only waiting for the new public transport policy to give us the proper guidelines on how to operate,” said Charles Ngarambe, the chairman of Kigali Bus Service, a local public transport company that recently imported 10 new buses at a cost of Rwf900 million, but fears releasing them into the market.

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Mr Ngarambe said he fears releasing the new buses into the market as he may not recoup the investments as a result of lack of order in the sector.
Currently, there is no policy for the public transport sector, leading to chaos and lack of discipline among players.

The investors in the sector also feel discriminated against by the investment code which they say favours other sectors of the economy.

“What hurts us is the discrimination we are experiencing from government. Whereas other investors are given preferential treatment, like tax incentives, investors in public transport are not benefiting from exemptions,” said Col. Dodo Twahirwa, another public transport investor.

“We are pushing to be recognised in the new policy. Some of us have pumped Rwf5 billion into the economy but the current investment code does not recognise us,” said Col Twahirwa.

“A person investing Rwf2 billion in a hotel gets preferential treatment compared with the public transport investors,” he added.

The transporters are demanding inclusion of incentives in the proposed policy to encourage more investments into the sector.

However, top government officials at the Ministry of Finance told Rwanda Today that it is unlikely that the government will extend any incentives to transport sector.