The Ethiopian Ministry of Transport and Logistics has introduced a strict new directive to improve public transportation safety and efficiency in line with Addis Ababa’s modernization efforts. While beneficial for the city, these changes create significant challenges for the public transport operators, especially minibus taxi operators, who now must obtain a competency license with stringent requirements.
Additionally, hefty fines of ETB 5,000 for a lost license and ETB 1,500 for carrying an extra passenger add financial pressure on drivers. These challenges raise concerns about the sustainability of their operations as they adapt to these reforms while trying to maintain their livelihoods after serving the country for many years.
Ayalew Siyoum, Chairman of the Addis Ababa City Minibus Taxi Associations, highlighted the growing challenges taxi drivers face due to new penalties and regulations. With drivers earning only ETB 4.50 per passenger for a 2.5 km trip, totaling ETB 50 for a full load of 12 passengers, rising fuel prices and inflation are cutting deep into their already slim margins. “Many drivers are left with no choice but to ask passengers for additional payments or take on extra passengers just to make ends meet,” Siyoum noted. He emphasized that revising the fare structure is essential to relieve the pressure, allowing drivers to sustain themselves without resorting to overloading or fare hikes.
These changes are part of a broader ten-year plan focused on establishing a reliable, integrated transport system that prioritizes safety, accessibility, and modernization. However, the financial burden of compliance may challenge many small and medium-sized operators, potentially leading to increased fares or service closures, raising concerns about balancing safety with affordability for the public.
“If it’s based solely on an individual’s desires, it will not succeed,” stated Birhanu Zeleke (PhD), an urban transport expert. He noted that some of the current regulations, such as the sharply increased penalties, appear to disproportionately impact operators. However, he emphasized that many directives from the government are designed to benefit society as a whole, which is why he’s confident that support measures like necessary loans and tax-free vehicle imports will be made available. Zeleke also highlighted the importance of raising awareness among drivers and minibus owners, noting that equipping them with psychological skills is crucial. He believes that this holistic approach might offers greater advantages for both the drivers and the community.
“Addis Ababa’s taxi minibuses, many of which are over 30 years old and prone to frequent breakdowns, are in urgent need of modernization.,” said Siyoum. He emphasized that for modernizing of these vehicles to succeed, significant government support is needed, such as tax-free imports and financial loans for new vehicles.
The situation poses a tough dilemma for transport operators, who are increasingly worried that high compliance costs could push them out of business. Balancing modernization and safety with economic realities threatens their livelihoods. Moreover, operators argue that the regulations are not only expensive but also vague on how to modernize their vehicles, leaving them uncertain about meeting requirements without clear guidance or financial support.
An anonymous driver in the Megenagna area expressed concerns about safety, stating, “We do not feel secure. Even the vehicles we have are insufficient for the community, especially if we were to remove about half of them.”
Seyioum urged drivers to focus on saving and planning to replace their outdated minibuses with more efficient models. “Just like those whose homes were affected by corridor development received support, old minibus owners should be given similar assistance after years of service,” he added. However, Ayalew clarified that this support doesn’t mean the government should cover all costs; vehicle owners must also play their part.
Siyoum suggested that during fuel shortages, minibus owners should be given priority over private car owners due to their crucial role in the community. He pointed out that with many people relying on their services, long lines of passengers form daily, making it essential for these drivers to have easier access to fuel. Ayalew also proposed that creating designated time slots for minibus drivers to refuel could help maintain their vital services without interruption.
For many people, these transport services are lifelines, essential for daily commutes and connectivity. If minibus owners are forced to raise fares or reduce services, it could increase hardship for families relying on public transportation. Having served the country for over 25 years, they deserve substantial government support through improved infrastructure and regulatory frameworks. This includes promoting public-private partnerships to encourage investment in electric minibuses and providing incentives for local assembly and maintenance facilities. Additionally, minibus owners should collaborate to share best practices and innovate service delivery to enhance efficiency and customer satisfaction.
Addis Insight’s attempts to contact the Ministry of Transport and Logistics and Addis Ababa Transport Bureau have been unsuccessful.
