Zimbabwe says even at 30 cents ZUPCO buses can make a profit

THE HON. SPEAKER: Order, order! The Chair uses his discretion.  Hon. Minister Murwira, can you assist? – [HON. MEMBERS: Inaudible interjections.] –

THE MINISTER OF HIGHER AND TERTIARY EDUCATION, SCIENCE AND TECHNOLOGY DEVELOPMENT (HON. PROF. MURWIRA): Thank you Hon. Speaker Sir. – [HON. MEMBERS: Reshuffle, reshuffle.] – I am actually acting as the Minister of Local Government, Public Works and National Housing.  The Harare Institute of Technology…

THE HON. SPEAKER: Order! Can I remind the Hon. Members who are asking for a reshuffle to wait for their own time – [Laughter] – More than that, Section 107 (2), of the Constitution says Ministers can act individually or collectively in responding to the work of Parliament or their Committees.  So, we are perfectly within the constitutional provisions.

HON. PROF. MURWIRA: Thank you Hon. Speaker.  I would also want to thank the Hon. Members for asking on the issue to do with pricing of ZUPCO buses.  Most of the prices that we charge are due to the inefficiencies in the collection systems. So, through the Harare Institute of Technology helping ZUPCO, we have developed a tap and go system with a card which is a recharge card that you can put money in advance and be able to use that and I was very happy to see Hon. Mliswa buying that card at ZUPCO.

This card makes the customer not carry cash anymore. You will be having the card which has money in advance and then you can use it every time.   It therefore means 0.50 cents according to calculation can make a big bus make profit – [HON. MEMBERS: Inaudible interjections.] – The transport in this country is overpriced.  We are proving through technology that we can have proper prices.  So, I think that is basically the issue of introducing efficiencies using technology at ZUPCO.  This is why we say ZUPCO will make profit even at 0.30 cents.

HON. KARENYI: Thank you Mr. Speaker.  I remember very well that some time ago we asked about the same question when the issue of ZUPCO and other bus operators were given an opportunity by Government to ferry people and we said how sustainable this process is.  Hon. Speaker, I am sure you will agree with me that even those buses were no longer transporting people from town to their respective areas.  How sustainable then is this issue of 0.50 cents?  Honestly, last time they promised us that they are going to sustain it but they failed.

HON. PROF. MURWIRA: We are repeating the fact that the prices of a bus has nothing to do with the price of a litre of fuel but it has something to do with the efficiency with which we collect money and running of the system.  So through this e-system, we are really looking forward to a situation whereby business does not over-profiteer or under profiteer based on the efficiency of their collection system.  So, we are basically tackling the collection system and this collection system will make it so efficient and sustainable.  I think the proof of the pudding is in the eating.  Thank you.

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