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  • Ethiopia: Transporters to Import 500 Buses With 70 Percent Bank Loan Posted on 18 May 2015

    In a bid to curb the longstanding transport woes in Addis Ababa, the government pledges to provide financial requirements for private commuters to enable them to import 500 buses for public transport.

    Kassahun Hailemariam, the Director General of Federal Transport Authority (FTA), said at a press conference on Thursday that the government has reached a decision to help transport associations to solicit 70 percent of bank loans so that they can import buses once they form share companies.

    They will then set up a committee that will facilitate the import of modern buses.

     

    The director also indicated that the decision is aimed at easing the longstanding transport shortage in the capital and will pave a new way to introduce a modern transportation service.

    He also noted that the introduction of the new buses would not affect the existing taxi service, which employs thousands of taxi drivers and co-drivers.

    Kassahun explained that apart from the infrastructure, the government also strives to facilitate the loan service for the association.

    He further indicated that the government will also provide tax-free incentives for when the vehicles are imported and will provide spaces for parking as well.

    According to the authorities, some fifteen taxi associations, three Higer Bus associations and Alliance Transport Service have been identified as the first to take the latest advantage and import the first 500 buses in six months, in keeping with the proper procedure set by the government.

    Yabibal Addis, Head of Addis Ababa City Transport Bureau, indicated that for the 2.3 million daily commuters in the city, the introduction of the new buses would contribute its share of easing the sour transport burden that affects the social and economic activities of the capital.

    According to him, 800 city buses and 8,000 taxis are currently in service across Addis Ababa's roads. He expressed his belief that the new buses will never affect the existing taxis and buses

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