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Challenges of Cashless Fare Collection in Paratransit: A Review in Sub-Saharan Africa

This presentation reviews experiences of cashless fare collection systems in Sub-Saharan African paratransit. It identifies key stakeholders, reasons for failures, and technology used. The study analyses 24 initiatives across 9 countries to understand the low success rate, with a focus on minibuses versus motorcycles. Emerging issues like job loss fears and lack of coordination hinder progress. The presentation concludes with recommendations for future research and successful implementation strategies.

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Challenges of Cashless Fare Collection in Paratransit: A Review in Sub-Saharan Africa

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  1. CASHLESS FARE COLLECTION IN SUB-SAHARAN AFRICAN PARATRANSIT: A REVIEW OF EXPERIENCES Presentation at the 38th SATC, Pretoria, South Africa, 8th – 11th July 2019 Aruho A. Tinka PhD Student - UCT Shezi, 2016

  2. ‘Paratransit’ here refers to: • public transport services • for-hire services

  3. One of the reform interventions in the paratransit sector???? My1963, in Nairobi SafeBoda in Kampala Faircard in Gauteng TechJaja, 2017; SafeBoda, 2019 Kajilwa, G., 2016; Africa Business Insight, n.d; Moore, N., 2016

  4. Problem framing – paratransit sector arrangement Interests and needs of stakeholders? Vehicle owner setting cash returns (daily/weekly) In a multi-stakeholder paratransit environment, what’s the potential for CFC as a reform mechanism? No formal labour engagement (‘casual labour’); high labour turn-over; limited operations information for planning; risk of robberies; driver stress & fatigue Driver (&/or conductor) operate ‘aggressively’ in the market to raise the ‘target’ and surplus as own pay-off Industry imposed behaviour & not paratransit driver intrinsic behaviour Hunter, S., 2016; Laghate, G., 2019; ANA, 2017; Nyondwa, A., 2017

  5. Paper review: experiences of cashless fare collection initiatives in Sub Saharan Africa Key phenomenon: Many of the CFC initiatives (particularly in minibus-taxis) have failed/ short lived • Hypothesis: • Many stakeholders with differing and conflicting interests and needs • Failure to satisfy these interests and needs leads to failure of the CFC initiative Review objectives: Identify the stakeholders in the identified initiatives Establish the apparent reasons for failure of the initiatives

  6. CFC initiatives identified 24 initiatives identified in 9 countries Kenya 10 initiatives 9 in Nairobi 1 in Mombasa Togo 1 initiative in Lomé Uganda 3 initiatives All in Kampala Benin 1 initiative in Contonou Rwanda 2 initiatives All in Kigali Nigeria 1 initiative in Lagos Cameroon 1 initiative in Yaoundé Tanzania 2 initiatives All in Dar. South Africa 3 initiatives in Gauteng, Cape Town & Pietermaritzburg Map Source: http://yourfreetemplates.com

  7. Technology used in the initiatives

  8. CFC analysis • Review results • paratransit CFC initiatives: 11 (motorcycles); 8 (mini/midi-buses); 3 (buses); 2 (motor tricycles) • None of the mini/midi-bus initiatives are operational (at April 2019) • All the motorcycle initiatives are operational and none were abandoned • BUT why are motorcycle initiatives seemingly successful (span of 5 years), as opposed to minibuses?

  9. CFC analysis Status of initiative

  10. CFC analysis Key feature: Transfer of initiatives across boarders e.g. SafeBoda initiative (Kampala – Nairobi) and Tap&Go initiative (Kigali – Yaounde) Stakeholders in the initiatives identified Vehicle owners; drivers and conductors; passengers; associations (owners, drivers); government (policy makers, regulating agencies, enforcement agencies); technology companies (local and international), financial and insurance institutions; telecommunication companies; international development agency (JICA in Dar.) • Emerging reasons for failure: • Fear of loss of jobs (Gauteng and Pietermaritzburg) • Non coordination of actors • Intense competition • Lack of interoperability of the many initiatives on the same market (Nairobi) • Inadequate engagement of stakeholders

  11. Conclusion • Rapid diffusion (in the past 5 years) of cashless fare collection systems in paratransit service, but the success rate is very low, particularly in minibuses • There are many stakeholders • Increased use of mobile phone-based form of fare payment, mainly in motorcycles initiatives

  12. Going Forward As part of an on-going doctoral study, • Further understand the key stakeholders in a selection of case study initiatives • Understand the needs and interests of those stakeholders • Investigate why the the initiatives are failing in minibuses, and seemingly succeeding in motorcycles • Explore how CFC initiatives can be undertaken with higher chances of success in the minibus industry (through agent-based modelling of selected taxi associations in Cape Town)

  13. Thank you for listening Questions and discussion

  14. Sources of images and information Shezi, L., 2016. No more cash in taxis: Gauteng launches first-in-SA payment system. Accessed on 23/10/2018 at: https://www.htxt.co.za/2016/10/17/gauteng-cashless-taxi-payment/ Moore, N., 2016. Taxi industry tries to usher in smart card system. Accessed on 23/10/2018 at: https://mg.co.za/article/2016-03-31-taxi-industry-tries-to-usher-in-smart-card-system Kajilwa, G., 2016. Matatu owners gear up for cashless system, tell State to keep off. Standard Digital. Accessed on 14/06/2019 at: https://www.standardmedia.co.ke/article/2000188507/matatu-owners-gear-up-for-cashless-system-tell-state-to-keep-off Africa Business Insight, n.d.Moving towards a cashless public transport system in Kenya. Accessed online on 14/06/2019 at https://www.howwemadeitinafrica.com/moving-towards-a-cashless-public-transport-system-in-kenya/46451/ Techjaja, 2017. SafeBoda App Is Finally Available For IPhone Users. Accessed online on 14/06/2019 at:https://www.techjaja.com/safe-boda-app-finally-available-iphone-users/ SafeBoda, 2019. SafeBoda. Accessed online on 14/06/2019 at: https://appgrooves.com/app/safeboda-by-safeboda-inc Hunter, S., 2016. It’s Official – This SA City Has The Worst Taxi Drivers. Accessed online on 14/06/2019 at:  https://www.2oceansvibe.com/2016/09/30/its-official-this-sa-city-has-the-worst-taxi-drivers/ Laghate, G., 2019. RannvijaySingha’s Disrupt gets pre-Series A funding at $2.5 mn valuation. Accessed online on 14/06/2019 at: https://economictimes.indiatimes.com/articleshow/69314168.cms?from=mdr Africa News Agency (ANA), 2017. One dead, 13 injured in Mpumalanga minibus taxi, car crash. Accessed online on 14/06/2019 at: https://citizen.co.za/news/south-africa/1690145/one-dead-13-injured-in-mpumalanga-minibus-taxi-car-crash/

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