J Af Eco 2003; 12:ii153-ii192
© 2003 Centre for the Study of African Economies
Article |
The Liberalisation, De-regulation and Privatisation of the Transport Sector in Sub-Saharan Africa: Experiences, Challenges and Opportunities
UNDP, Uganda & Kenya
Abstract
In this paper we discuss the liberalisation, deregulation and privatisation of the transport sector in Sub-Saharan Africa. We review the changing policy environment and its impact on the structural development and transformation of transportation systems and services. We show how transport parastatals, even in strategic public utilities such as ports, airports and railways, are being deregulated, commercialised and privatised. The ensuing favourable pricing and marketing policies have led to improved transport services. Hitherto, transport costs to the economy, especially its rural component, were exorbitant. Some rural areas had no access at all to transport services, either because roads had ‘withered away’ and/or transport operators avoided rural areas. Past policies and practices emphasising excessive reliance on public transport monopolies, direct or indirect (cross-)subsidisation of transport services, administratively determined tariffs and regulatory protection of, or preference for, national as against (sub-)regional operators are giving way to transport policy reform and restructuring to increase financial accountability and viability, enterprise autonomy and cost-effectiveness in resource use and enhanced transport service delivery. The challenge is to develop a deregulated and privatised multi-modal transportation system responsive to the economy's needs and user expectations. We document country experiences and best practices, and propose policy options and a research agenda.