Mozambique: Government Has Money to Subsidise Transport Operators

Maputo — The Mozambican Transport Minister, Mateus Magala, announced on Monday that the government now has sufficient money to pay a subsidy to passenger transport operators in the Greater Maputo Metropolitan Area.

Fares on Maputo buses and minibuses have been kept relatively low because the government promised to compensate loss-making transport operators.

The promise of compensation was made repeatedly last year, followed by apologies from the government that it did not yet have the money to pay this subsidy.

But now the government does have the funds, said Magala, cited by the independent television station STV. "We met with Fematro (Mozambican Federation of Road Transport Operators) last weekend', he added, "and I also had the opportunity to speak with the Minister of Economy and Finance, Max Tonela, who guaranteed that the money is available'.

"So very soon we shall pay the compensation to the transport operators', declared Magula. But he gave no date for this payment, not did he say how much compensation would be paid.

With this new government promise, the transport operators say they are hopeful. The chairperson of Fematro, Castigo Nhamane, told STV that the question of the subsidy is on the agenda for Tuesday's meeting of the Council of Ministers (Cabinet). He expected the operators to receive the money some time later this month.

Despite the promises of compensation, the transport operators increased their fares on 27 February. The flat rate fare for short journeys rose from 12 to 15 meticais (from 19 to 23 US cents, at the current exchange rate), and for longer journeys from 15 to 18 meticais.

The operators say this increase does not cover their costs in fuel, lubricants, tyres, spare parts, maintenance, and the wages of their employees.

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