Rwandan Motor Taxi Industry Generates $1 Billion, Reports KT Press

    KIGALI, RWANDA, May 28, 2015 /24-7PressRelease/ -- Rwandan motor taxi drivers are among the most despised workers in the country, but a chilling investigation conducted by KT Press, indicates that the motor taxi business is worth Rwf726 billion ($1 billion) annually.

This is worth a total grant the World Bank Group recently committed to Rwanda in the next five years.

There are 78,000 known members, according to FERWACOTAMO, the umbrella organization for 240 motor taxi cooperatives.

Each cooperative pays Rwf160, 000 as taxes annually, amounting to Rwf38,400,000 ($54 million) from the 240 cooperatives.

Every motor taxi operator is required to commit Rwf300 daily to FERWACOTAMO, yet for every three months, each driver pays Rwf18, 000 as taxes, equivalent to Rwf72, 000 ($100) per year.

On average, a motor taxi operator can generate Rwf25,000 ($45) daily depending on the number of clients and working hours.

Jean Pierre Ndaruhutse 25, has been driving a motor taxi for six years in the capital Kigali. "Normally, when I hit the road hard, I can take home more than Rwf40,000($55) a day," he says.

Part of the revenues services the motor cycle, buys fuel, pay rent, food, clothing and cover other expenses.

KT Press has established that the annual taxes from the motor taxi business (Rwf6 billion) can fund an entire district budget. According to the Ministry of Local Government, one district spends roughly Rwf8 billion.

Ironically though, the industry generates more revenues (Rwf712 billion) than the revenues generated by Bank of Kigali, the country's largest commercial bank, which makes Rwf21 billion as annual net profit.

Also, Bralirwa, the largest brewer, a conglomerate of Dutch-based Heineken group, does not come close to the motor taxi industry. It makes just Rwf19 billion annual net profit.

More so, the industry is also twice bigger than the country's total 2014 exports, including minerals, cash crops and others, according to the National Institute of Statistics of Rwanda, were worth Rwf432 billion ($599.8 million).

Meanwhile, apart from generating high revenues, the motor taxi industry is also involved in social activities such as Umuganda (community work).

According to Celestin Ntaganzwa, the president of FERWACOTAMO, when all the members of the association take part in the exercise, their work is valued at Rwf100 million every year.

Read the full article here: http://ktpress.rw/rwanda-motor-taxi-industry-generates-1-billion-annually-2094

# # #