MOVING AFRICA

DearReader,

Welcome to another edition of Energy and Sustainability Africa researched and as you know,producedinNamibia!

It is well known that transport infrastructure and services are crucial for economic growth, social development, and regional integration inAfrica However,thecontinentcontinuesto face numerous challenges in developing and maintaining an efficient and sustainable transport system The challenges are multifaceted and encompass major issues related to infrastructure, finance, policy, and environmental sustainability which hampers connectivity within countries and across the continent, affecting trade, mobility, and accesstoservices

Progress is being made across the continent withGhana’saviationsectorcommissioninga new Airport Terminal and the President of Egypt(PresidentAbdelFattahEl-Sisi)checking uponportdevelopmentsthatthePresidency notes “[the ports play a] vital role in all sectors of the state, as well as their role in reinforcing Egypt’s status as a regional and global hub for maritime transport, logistics and transit trade”.

As a result, this month’s edition is dedicated to the sector and looks at addressing these challenges such as through investment in infrastructure, policy reform, improved governance,andtheadoptionofsustainable practices in Africa. Enhancing transport systemssuchaswithe-mobility,willnotonly drive economic growth but also improve the qualityoflifeformillionsofpeopleacrossthe continent

Hope you find this edition of Energy and Sustainability Africa informative as we encourage you to follow us and engage with usonalloursocialmediaaccounts.Asalways, the conversation continues at esa@rdjpublishing.africa.

Yours, editor@rdjpublishing.africa

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NOTE2: EnergyandSustainabilityAfrica is published monthly and is FREE to Readers The magazine is paid for by advertising and the research support from RDJ Consulting ServicesCC,Windhoek,Namibia.

(DavidA Jarrett) Editor

Authors RDJResearchers

T H E E C O N O M Y

Transport: Africa’s Informal Sector - A Missed Economic Opportunity?

AUTHOR: Chilombo (Olga) Priscila EconomicResearcher/Statistician@ RDJ Consulting

Informal transport is a ‘global phenomenon’ which plays a major role in the mobility of millions of city inhabitants, particularly in the “Global South”. Also known as paratransit, informal transportation refers to non-regulated, often unlicensed modes of transport that operate outside the formal public transportation systems and include minibuses, shared taxis, motorcycle taxis, and rickshaws The type of vehicle often depends on the geographical and economic context of the area

For several years, this sector has faced numerous threats of being banned in many countries due to their nature of operating. However, their origin emerged because of the lack of transportation systems provided by state organizations The United Nations has revealed that lowincome earners spend more than a fifth of their income on public transport alone

This therefore pushes low-income earners to grow more dependent on informal means of transportation on a daily basis. A similar case has happened in Nairobi, where the ban of Matatus (a popular fleet of privately owned minibuses in Kenya used as shared taxis) only lasted for a day due to commuter chaos that led to immense public outcry for cancellation of the ban in 2018

Informal transportation has become the main mode of motorized transport in many African cities and holds an important role around the world. According to the United Nations, more than 3 2 million people travel in Africa every year! However, it is also true that formal means of transportation are limited to those that can afford it, while leaving behind those that cannot Consequently, this hinders their access to basic services and markets, promotes marginalization and can deepen social inequities in a country.

Today, only 49 5% of urban residents worldwide have convenient access to public transport With a striking high number of commuters, the informal transport sector plays a significant role in ensuring that people, especially those with low incomes, also afford transportation as needed.

The challenge with informal transport is that there are many different providers, and the authorities are not aware of them all. As a result, the sector continuously faces threats from authorities. Safety and reliability is another challenge faced by this sector due to the lack of regulatory oversight; therefore, it tends to accumulate old and poorly maintained vehicles which pose risk to people’s health The mushrooming of informal transportation in densely populated areas also contributes to traffic congestion, making traffic flows more complex and unsafe.

While informal transportation presents safety concerns and issues with service reliability of paratransits brought by the lack of regulation, the same continues to show great socio-economic potential for both the developing and developed world’s transport ecosystem. In developing countries, informal transportation has managed to bridge the affordability gap, making it possible for low-income communities to remain functional and productive at their levels

Despite its informal status, this sector holds significant economic potential due to its flexibility in routes, schedules, and operations, catering to the transportation needs of areas that formal public transit does not adequately cover Let us have a look at the sector’s economic values

Socio-economic Value(s) of Informal Transportaition

In Kenya, the matatu industry has grown into a behemoth, generating revenues of, according to some estimates, $2 billion annually and employing over 350,000 Kenyans Despite Matatus being an informal means of transport which due to its unstable operations, has made Nairobi residents develop a love-hate relationship with its industry overtime, Kenda Mutongi (the author of the book Matatu: A History of Popular Transportation in Nairobi) identifies it as, “the only major business in Kenya that has continued to be almost entirely locally owned and controlled ”

It is therefore not strange that for example in Kayseri (Turkey), the informal transport industry represents 60% of the overall country’s transport supply, while in many African cities this rises up to 90%. Here are a few socioeconomic benefits that this industry holds.

Mobility Solutions, Affordability and Access

The sector supports economic activities by providing fast and affordable transport options, making them accessible to those that cannot afford formal means of transportation. By doing so, they often fill the gap in areas underserved by formal transit systems, especially in developing countries

Employment

The informal transport sector provides significant employment opportunities, especially in developing economies. It offers a livelihood for drivers and operators who might otherwise have limited employment options.

Support for Informal Economies

Informal transport supports the broader informal economy by facilitating the movement of informal sector workers and goods. For example, in Bangladesh, cycle rickshaws and "baby taxis" (three-wheelers) are essential for transport would lead to many people becoming immobile andlesseconomicallyproductive.

In the long-term, informal transport will continue to be part of the mobility landscape. To ensure the sector comes out stronger and more resilient, it is key to reflect on a transformation This could mean the coexistence of regulated and informal transport in one efficient mobility system In Latin America and Eastern Europe, informal transport already coexists with formal modes, in subSaharanAfrica,itmaybetheonlymode

Meanwhile in developed regions, informal transportation finds a niche In Latin America for example, "colectivos" or shared taxis are common, while in parts of Europe and North America, ride-sharing and carpooling services sometimes operate in a gray area between formal and informal transport By Properly harnessing the strengths of informal transportation while addressing its weaknesses, more efficient and inclusive urban mobility solutions will certainly arise worldwide. What is your take onthismatter?Talktousat esa@rdjpublishing.africa

Readings: https://transformative-mobility org/improving-informal-