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How the transport sector is adapting to Rwanda’s COVID-19 lock-down restrictions
On Monday, the government of Rwanda lifted strict measures after 45 days of COVID-19 lock-down, enforcing a curfew from 8 pm to 5 am. The government also restricted public transportation to carry fewer passengers to observe social distancing and due to this, there seems to be more demand than supply. Patrick Bucyana, CEO of AC Group joins CNBC Africa for more.
Thu, 07 May 2020 10:27:54 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- Impact of COVID-19 lockdown on public transport in Rwanda
- Challenges faced by AC Group in adapting to social distancing regulations and increased costs
- Opportunities for growth and innovation in the transport sector post-COVID
The government of Rwanda recently lifted strict COVID-19 lockdown measures after 45 days of restrictions, ushering in a new phase for companies operating in the public transport sector. AC Group, known for electronic payment services in public transport, has faced challenges due to the reduced capacity enforced by social distancing regulations. With passengers required to maintain a one-meter distance, buses are now carrying only 50% of their usual capacity, resulting in a significant drop in revenues. Additionally, restrictions on movement between provinces and the encouragement for institutions to only utilize essential workers have further impacted the demand for public transportation. As a response, the government has increased the price of public transport by approximately 30 to 40%, adding to the financial strain on companies providing these services. Despite these challenges, Patrick Bucyana, CEO of AC Group, remains optimistic about the sector's ability to adapt and thrive amidst the changing landscape. Bucyana emphasized the importance of viewing public transport as a critical element in city connectivity and business operations. While the increased costs pose a significant hurdle, he stressed the necessity of balancing the needs of all stakeholders in the industry. One proposed solution involves adjusting transport allowances for essential workers who continue to commute while working from home employees have their transport costs waived. This adaptive approach aims to ensure the sustainability of bus companies during these uncertain times. Bucyana also sees the current situation as an opportunity for growth and innovation within the transport sector. The shift towards digital payment methods has been accelerated by the pandemic, prompting AC Group to expand its services and encourage the adoption of electronic payment options. Additionally, the company is exploring new avenues such as bike hailing to address changing commuter habits and preferences. By identifying emerging trends and leveraging technology, AC Group aims to position itself as a leading provider of innovative transport solutions. Looking ahead, Bucyana expressed confidence in AC Group's long-term outlook, indicating plans for expansion and team growth rather than downsizing. While global competitors like Uber and Lyft have scaled back operations, AC Group remains committed to its growth strategies and believes in potential opportunities post-COVID. The pandemic has forced a re-evaluation of traditional transportation models, prompting discussions on the future of public transport in the next decade. Bucyana highlighted the potential for personal rapid transit as a novel approach to commuter services, emphasizing the need for adaptable solutions in a rapidly changing environment. While uncertainties remain, AC Group remains optimistic about the evolution of the transport sector and its role in shaping the future of transportation in Rwanda.
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