How Rwanda’s taxi-motos industry is navigating COVID-19 headwinds
As one of the main modes of public transportation in Rwanda, the return of taxi motorcycles last week has made waves across industries.
Fri, 12 Jun 2020 10:15:58 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
- Taxi-motos industry in Rwanda faced challenges during the COVID-19 pandemic, leading to a halt in operations and disruptions in the supply chain.
- Special recommendations by the Rwanda Utilities Regulatory Authority, such as passengers purchasing their own helmets, influenced consumer behavior positively, but the surge in sales did not fully offset pre-lockdown losses.
- Optimism surrounds the industry's gradual recovery with the resumption of moto operations, as companies explore innovative solutions and adapt to the new normal to ensure safety and sustainability.
The taxi-motos industry in Rwanda has faced significant challenges due to the COVID-19 pandemic, causing a halt in operations and disrupting supply chains. Sameer Damji, the Managing Director of Sameer Hussein Co. Ltd, the exclusive distributor for TVS Motor in Rwanda, shed some light on the impact of the pandemic on the industry in a recent interview with CNBC Africa. Damji highlighted the struggles the sector faced during the lockdown, with no business in April and May as motos were not allowed to operate. The situation was tough for all sectors in the country, resonating with the global impact of the pandemic. Despite the difficult times, Damji expressed optimism about gradually returning to a normalized business environment with the resumption of moto operations. While the closure of borders affected the supply chain initially, Damji commended the Rwandan government for stringent measures to prevent the spread of the virus. Collaboration between governments helped ease the backlog at borders, ensuring the safety of the people. With the return of motos, the Rwanda Utilities Regulatory Authority issued special recommendations, including passengers purchasing their own helmets for added safety. Damji noted a surge in demand from private individuals for helmets post-lockdown, indicating a positive response to the safety measures. However, the increase in helmet sales has not completely offset the losses incurred during the lockdown. Damji remains hopeful that sales will recover gradually as the industry adapts to the new normal. The recommendation for moto drivers to remove windshield glass from helmets to maintain hygiene standards also influenced consumer behavior. Notably, motodrivers have accommodated passengers by following the authorities' guidelines, ensuring safety for all. Looking ahead, Damji is optimistic about Rwanda's recovery from the pandemic, acknowledging the government's proactive measures to contain the virus. He foresees the country emerging as a leader in combating the crisis in Africa. Despite a slowdown in demand due to the economic crisis, Damji anticipates a stabilization of sales in 2021 as the industry navigates through the challenges. To address losses and adapt to the changing landscape, the company is exploring innovative solutions such as importing face shields and collaborating with suppliers to enhance product offerings tailored to the current needs. The resilience and adaptability of Rwanda's taxi-motos industry underscore the sector's commitment to ensuring safety and sustainability amidst the ongoing pandemic.