1. Competition Reforms in Bus transport sector In Zambia National Advocacy Plan (CREW Project) CREW NRG-IV Meeting, 22 nd April, Lusaka

2. Outline Policies assessed under CREW Project Policies assessed under CREW Project Bus Transport Sector in Zambia- Current Situation Bus Transport Sector in Zambia- Current Situation Emerging Issues Emerging Issues Work Plan & Envisaged outcome Work Plan & Envisaged outcome Expectations from NRG Members Expectations from NRG Members

3. 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; Transport Liberalisation Policy; Road Traffic Regulations; Road Traffic Regulations; Transport Infrastructure Transport Infrastructure ;

4. Bus Transport Sector in Zambia Current Situation Current Situation  The National liberalisation Policy-  The National liberalisation Policy- enabled the GRZ develop a free market economy and an efficient transport system that would facilitate positive economic growth  The tax concessions under the NTP 2002 encouraged more private sector participation. There is no government involvement. – Resulted in a growing bus market and improved availability of buses for consumers The RTA 2002 The RTA 2002 provides a regulatory scope for the bus transport sector and establishes RTSA 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 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

5. Bus Transport Sector in Zambia The method of selection of SH is based on the judgement of Ministry of Transport & RTSA alone Quality Control 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 Low accountability of bus operators: Gap in transport availability on non- profitable routes and off peak hours

6. Emerging Issues There is need to relook at the fare setting process, 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. route rationalisation 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. 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 %).

7. Work Plan & Envisaged Outcome Key Issue: 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

8. 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

9. 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 – 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.

11. Thank you…