Source: Zimbabwe moves to regulate e-hailing services amid revenue concerns — CITEZW
The Zimbabwean government is preparing to regulate e-hailing services such as InDrive, Bolt and Tap and Go, amid concerns over lost revenue and the absence of a clear legal framework governing the sector.
Transport and Infrastructural Development Minister Felix Mhona told Parliament that Cabinet had directed his ministry to explore ways of bringing e-hailing services into the country’s public transport regulatory framework.
The move comes as app-based transport services become increasingly popular in urban areas and an important source of income for young people.
Responding to questions from MPs Chenjerai Kangausaru, James Chidakwa and Trymore Kanupula, Mhona said e-hailing services were not currently covered by the Road Motor Transportation Act.
“As per the Road Motor Transportation Act, there is currently no provision for e-hailing services. Recognising this gap, we have engaged in discussions and the Cabinet has directed us to explore this matter further,” he said.
Mhona said the ministry was preparing a Statutory Instrument as an interim measure while work continued on a broader regulatory framework.
“In response to the concerns highlighted by Hon. Kangausaru, we recognise the importance of moving forward swiftly. Therefore, in the short term, we are preparing a relevant Statutory Instrument to address these concerns,” he said.
Kangausaru had asked whether the government would amend the Road Motor Transportation Act to formally recognise and regulate e-hailing services, citing South Africa’s approach to bringing operators into the public transport regulatory system.
He said e-hailing platforms had become an important source of employment and income for young people while providing a convenient and increasingly popular form of transport in urban areas.
Kangausaru also questioned whether the government was losing potential tax revenue and licence fees by allowing the sector to operate without a comprehensive regulatory framework.
“Given the rapid growth of the e-hailing sector, is the Government not potentially foregoing tax revenue, licence fees and other relevant income by allowing the sector to operate without a clear and comprehensive state framework?” he asked.
He also asked what measures were being considered to ensure e-hailing operators contributed to public revenue without undermining youth employment or affordable transport.
Mhona acknowledged that the government was losing revenue from the sector.
“Indeed, we are facing a significant loss of revenue, particularly because the current e-hailing platforms do not operate through established systems,” he said.
“These platforms are merely applications that can be downloaded on mobile devices, which complicates revenue collection.”
He said the ministry was examining ways of working with the platforms to establish appropriate revenue collection mechanisms.
The proposed regulation has also raised concerns about the cost of transport.
Chidakwa warned that excessive taxes and charges on e-hailing operators could ultimately be passed on to passengers.
“Punitive charges to InDrive and the likes can only increase the cost of transport for the travelling public,” he said.
He urged the government to keep registration and other charges to a minimum, arguing that higher operating costs would eventually be borne by commuters.
Mhona said the government would consider the impact of additional charges as part of its broader ease-of-doing-business policy.
“The Government is advocating for ease of doing business,” he said.
“We will also closely examine additional charges to ensure they align with our goal of facilitating a more business-friendly environment.”
Kanupula raised concerns about possible arrests of e-hailing drivers before the new regulations are introduced.
He said many people depended on the platforms for their livelihoods and asked whether drivers would be given notice before enforcement action was taken.
Mhona said the ministry would engage local authorities to address the issue.
“This issue extends beyond the Ministry of Transport and Infrastructural Development; it is an inter-ministerial concern that requires collaborative deliberation,” he said.
He said the ministry would meet councils and municipal authorities to discuss the matter and promised that the public would be given feedback.
The government is also considering bringing tricycles, particularly those operating in rural areas, into the registration system.
Mhona said the ministry was committed to regulating the sector but urged the public to be patient as the process continued.
The planned Statutory Instrument is expected to provide an interim legal framework for e-hailing services while the government works on longer-term changes to transport legislation.
For drivers and operators, the changes could mean new registration requirements, safety standards and fees. For the government, they could open up a new source of revenue.
For commuters, however, the key question will be whether regulation improves safety and accountability without making app-based transport significantly more expensive.
The government will therefore have to strike a balance between regulating a rapidly growing industry, collecting revenue and keeping transport affordable for the people who depend on it.
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