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Rwanda invested Rwf87.5 billion to subsidize public transport in three years

By Esther Muhozi
On 12 February 2024 at 04:22

The Minister of Infrastructure, Dr. Jimmy Gasore, has affirmed the government’s commitment to reducing the financial burden of public transport, noting that a substantial subsidy of Rwf87.5 billion has been allocated to support transport companies, aiming to prevent surge in travel expenses.

In a proactive move toward affordability, the government now covers 30% of transport fares for individuals. This approach ensures that travel expenses remain reasonable and accessible to the general public. For instance, a trip from Kigali to Musanze, originally costing Rwf3000, now only requires passengers to pay Rwf2000, with the government covering the remaining Rwf1000.

Speaking to RBA, Dr. Gasore emphasized that despite the seemingly modest amounts, the cumulative impact on the country is significant. Since the onset of the Covid-19 pandemic, over Rwf87.5 billion has been invested in supporting public transport.

Furthermore, the government has allocated an additional Rwf6 billion to aid public transport users, while actively seeking ways to reevaluate and enhance assistance. Acquiring buses at a reduced cost of Rwf120 million, compared to the initial Rwf150 million, aims to alleviate the financial strain on Rwandans.

As part of ongoing reforms, the government is moving towards destination-based pricing instead of charging for the entire trip. Between March and August 2023, a subsidy of Rwf21.8 billion benefited over 63 million passengers, involving 12,559 buses. During this period, 223,120,808 liters of petroleum products were utilized in Rwanda, comprising 136,947,053 liters of diesel and 86,173,755 liters of petrol.

Rwanda invested Rwf87.5 billion to subsidize public transport in three years.

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