The ordeal of a budding transport entrepreneur

13 Jul, 2014 - 06:07 0 Views
The ordeal of a budding transport entrepreneur

The Sunday Mail

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Mr Collen Gwandi (not real name) is still traumatised by the experience he went through when he tried to register his 18-seater commuter omnibus to ply the intra-city routes. As if parting with the princely sum of US$1 000 – gobbled in multiple fees and licences – was not enough, the whole ordeal of trying to regularise all the documents needed to be fully compliant took him more than three weeks.

The whole vetting process is onerous: Initially one has to have a garage report that is submitted to the Vehicle Inspection Department (VID), a department falling under the Ministry of Transport and Infrastructure Development.

After the report is vetted, a raft of documents such as a bank statement, proof of residence and the company profile is then lodged with the Ministry for processing of an operator’s licence. It is this licence that is used to then acquire the number plates.

But before this arduous process, one has to shell out US$250 in paying presumptive tax, even before the omnibus has began operating. An additional amount is also needed for the motor vehicle insurance after which a certificate of fitness has to be obtained; again, from VID.

The process is still on-going. After the certificate, Mr Gwandi has to buy the passenger insurance, and then submit all the aggregated paperwork to the Ministry of Transport, which is the authority that gives the Route Authority.  It also doesn’t come for free: it costs about US$125. If the operator intends to conduct business within Harare, he or she has to get a rank disc from Harare City Council (HCC). This intricate web of bureaucracy and red tape is likely to drive an aspiring entrepreneur – whatever his resolve – insane. “Well, one might expect to only submit all the documents in one office since all these processes fall under the influence of one Ministry,” complained Mr Gwandi. But this is not peculiar to the transport business only as it is a microcosm that is affecting potential investors – both foreign and domestic – in various other sectors.

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