Commuters demand service as ZUPCO reviews prices

Zimbabwe United Passenger Company’s latest price review has commuters asking to see buses plying routes in their areas first.

“Where are the buses?” is the question that social media users were posing on the ZUPCO handles after the national commuter transport service posted its new rates effective today.

Government has been importing buses and with a local assembly line having started. 400 buses arrived in the first quarter of 2022 with the announced imminent delivery of 500 more.

ZUPCO is also hiring buses from private companies. Commuter trains have been re-introduced.

But demand remains higher than supply and government was forced to reinstate private transport operators and turn a blind eye to illegal pirate taxis known as mushikashika when commuters were left stranded after a ban.

The transporter also announced that it will now be taking USD payment for fares. Previously fares were gazzetted in the local dollar only creating a loophole for illegal forex transactions.

Commuters within a 20km radius will now pay ZWL$400, up from ZWL$220 or USD 0.75 cents while those travelling between 21 and 30 km will pay ZWL$550 or USD1.

Some of the respondents to ZUPCO’s fare review posts queried why transport prices are going up when inflation is coming down.

“Mushikashika charges 50 cents, so it means Zupco is no longer an option,” one respondent wrote.

ZUPCO last hiked fares in May effective 1 June. USD/ZWL$ Auction rate was on 308.5201 and is now 546.8254 So effectively ZUPCO has raised its charges by 82 percent against a 77% fall in value of the local currency in the period under review. Thus the hike is within the obtaining inflation rates.

ZUPCO reviewed its payment to private operators to USD225 per day meaning that each hired bus must ferry at least 300 passengers just to pay the owner per day.

Government heavily subsidises ZUPCO operations to cushion the most disadvantaged commuters. The Auditor General earlier called for more transparency and accountability in the USD10 million that government is putting into parastatal.

Transport players have called for full commercialisation of ZUPCO to ensure efficiency. In countries where mass transit services are heavily subsidised and run efficiently, there is a corresponding tax revenue base in those who access the service.

Zimbabwe’s tax base is mostly concentrated on the formal sector while the majority of the population earns their living in the informal sector.

Finance Minister Professor Mthuli Ncube’s introduction of the 2% tax on digital transactions helped create a fund that government has used for various welfare projects including Cyclone Idai and Covid-19 mitigation measures.