OTRACO Burundi

Last updated
Public Transport Office
OTRACO
Native name
Office des Transports en Commun
IndustryTransport
Headquarters
Burundi
Burundi physical map.svg
Red pog.svg
OTRACO headquarters in Bujumbura
OTRACO headquarters in Bujumbura (Burundi)

The Public Transport Office (French : Office des Transports en Commun), or OTRACO is a publicly owned enterprise that inspects vehicles and operates public transport in Burundi.

Contents

Business model

The Office de Transport en Commun (OTRACO) is a government office based in Bujumbura that is responsible for public transportation. It is also responsible for technical inspection of vehicles. [1]

OTRACO has a fleet of buses that serve the city of Bujumbura and the interior of Burundi. There is a shortage of private bus companies in part because the poor quality of the road makes vehicle maintenance expensive, and in part because the public cannot afford high fares. Japan has assisted OTRACO by donating modern buses and by providing training. [2]

History

The state-owned Transport Board of Burundi (Office des Transports du Burundi, or OTRABU) was liquidated on 2 September 1991. [3] It was succeeded in its bus business by OTRACO. [4]

In September 2006 Jean Bosco Ntunzwenimana, Minister of Transport, said four buses would be allocated to the parking lots of Bujumbura, two in the south and two in the north, to help bus passengers find transport in the evenings. [5]

In January 2010 OTRACO founded Otraco Burundi Express, which mostly operates in Burundi, Rwanda and Uganda. Burundi terminals were in Bujumbura, Gitega and Ngozi. [6]

On 16 April 2016 the government of Burundi signed a Public-Private Partnership (PPP) agreement with Global Smart Technologies (GST) of Burundi for modernizing automobile technical inspection services and the granting of transport permits. An order to implement the project was signed in 2019. [7]

In February 2017, following the introduction of new ways to prevent fraud, OTRACO was inspecting over 200 vehicles per day, whereas before there were only 20 to 25 vehicles per day. A deficit of 180 million  BIF had been replaced by a profit of 200 million  BIF. Long queues had been reported for vehicles waiting for inspection, but the CEO of OTRACA said a computerization system was being introduced that would reduce waiting times. [8]

In August 2017 OTRACO announced that vehicle inspection fees would increase as of 1 September 2017. Fees for public transport vehicles would rise from 11,500  BIF to 35,000  BIF. Fees for private cars would rise from 8,100  BIF to 50,000  BIF. Fees for motorbikes would rise from 2,000  BIF to 10,000  BIF. [9]

In June 2021, the President of Burundi suspended the CEO of OTRACO, who was accused of mismanagement and of dragging out changes to OTRACO operations. [10] Shortcomings in the GST partership were observed, and in June 2021 the accounts through which costs were processed were frozen. [7]

In July 2021 Capitoline Niyonizigiye, Minister of Commerce, Transport, Industry and Tourism, launched the Technical Control Center for Vehicles and Motorcycles at the OTRACO agency in the Musinzira district of Gitega. Vehicle owners would no longer have to travel to Bujumbura Mairie for technical inspections. There were plans to establish inspection centers in Ngozi in the north, and in Bururi in the southwest. [11]

In September 2021 the ministers of Finance and Transport were asked to review the contributions of each partner in the PPP agreement with GST and draw up a new contract that respected the win-win principle. [7] They found that GST had overvalued its equipment and technical control software. [12] Revenue allocation depended on the service, but it was estimated that GST would get 21.3%, with the remainder divided between OTRACO and OBR. In July 2023 the Council of Minister approved lifting of the freeze. [7] The new contract would last for three years and one month. When it expired, the OTRACO staff, trained by GST, would be able to operate the software. [12]

Burundi Eco interviewed the new CEO of OTRACO at the company's premises in February 2023. They noted that technical inspection of vehicles was taking 45 minutes to an hour for new customers, and 30 minutes for returns customers, a real improvement. The CEO said financial management had also improved. A project was being tested by which customers could pay electronically for technical inspections. However, the owners of old buses used in public transport still failed to come to get their vehicles inspected. [10]

In May 2024, Audace Niyonzima, Minister of Finance, Budget and Economic Planning, reported to the Senate on dividends paid by public and mixed enterprises. He noted that some public companies had never paid their dividends, including Onatel (National Telecommunications Office), Camebu (Central Medical Purchasing Agency), Cogerco (Cotton Management Company), Loterie Nationale du Burundi, Onatour, Otraco and the Hôtel Source du Nil. Some had recorded negative results, and others had not taken the required steps to calculate dividends. [13]

See also

Related Research Articles

<span class="mw-page-title-main">Bujumbura</span> Largest city of Burundi

Bujumbura, formerly Usumbura, is the economic capital, largest city and main port of Burundi. It ships most of the country's chief export, coffee, as well as cotton and tin ore. Bujumbura was formerly the country's political capital. In late December 2018, Burundian president Pierre Nkurunziza announced that he would follow through on a 2007 promise to return Gitega its former political capital status, with Bujumbura remaining as economical capital and center of commerce. A vote in the Parliament of Burundi made the change official on 16 January 2019, with all branches of government expected to move to Gitega within three years.

<span class="mw-page-title-main">University of Burundi</span> Public university in Bujumbura, Burundi

The University of Burundi is a public university located in Bujumbura, Burundi. Founded in 1964, it comprises eight faculties and five institutes and has a student enrollment of approximately 13,000. It is based in three campuses in Bujumbura and a fourth in Gitega. It took its current name in 1977 and is Burundi's only publicly funded university.

The Ruvumera Market is a public market in the Commune of Buyenzi, Bujumbura, Burundi.

The Insurance Company of Burundi is an insurance company in Burundi. It dominates the markets for life and non-life insurance.

The Kinama Market is a public market in Bujumbura, Burundi.

<span class="mw-page-title-main">Markets in Bujumbura</span>

The Markets in Bujumbura include the main public markets in the city of Bujumbura, Burundi, and various smaller public or private markets. Several thousand traders work in these markets, typically renting a very small stall and selling a limited range of goods. A well-meaning program to renovate seven of the markets, funded by the European Union, caused major costs and disruption to the traders in 2016–2018. Traders have also to deal with decisions by the city government to reallocate different types of business to different markets.

The Bujumbura Central Market was a public market in the center of Bujumbura, Burundi. It burned down in January 2013, and the site was abandoned.

The Bujumbura City Market is a public market in Bujumbura, Burundi.

The Ngagara Market is a public market in Bujumbura, Burundi.

The COTEBU Market, or Ngagara II Market, is a public market in the Ngagara zone of the Commune of Ntahangwa, Bujumbura, Burundi.

Kaze Green Economy, or KAGE, is a social enterprise that manufactures wood and charcoal substitutes from biodegradable waste. It has facilities in Gitega and Bujumbura, Burundi.

Onatel Burundi, is a state-owned telecommunications provider in Burundi. It provides the full range of services including fixed and mobile voice, broadband and internet. The company has struggled to compete with private internet, broadband and mobile operators for many years.

The Burundi Central Purchasing Department of Pharmaceutical Products, or CAMEBU is a publicly owned enterprise that imports and distributes medicines and other medical supplies in Burundi.

The National Lottery of Burundi, or LONA is a publicly owned enterprise that regulates gambling in Burundi, and owns some gambling venues.

Société Pétroliere du Burundi, or SOPEBU, is a public company that imports, stores and distributes petroleum products in Burundi.

The Meridien Bank Burundi, or MBB, was a bank in Burundi, a subsidiary of Meridien BIAO, a network of African banks with headquarters in Zambia. It was launched in 1988 and failed in 1995.

<span class="mw-page-title-main">Women's Investment and Development Bank</span>

The Women's Investment and Development Bank is a commercial bank in Burundi.

The Transport Board of Burundi, or OTRABU, was a state-owned company that ran trucks and buses in Burundi. It was created in the 1970s, its debts were written off in 1979 and again in 1984, and it was finally liquidated in 1991.

The Commercial Insurance and Reinsurance Union of Burundi, or UCAR, is an insurance company based in Bujumbura, Burundi. Two separate subsidiaries provide life insurance and other insurance.

The Management and Financing Bank, or BGF, is a bank based in Bujumbura, Burundi.

References

  1. About OTRACO Africa2Trust.
  2. OTRACO: Affordable Transport to the People.
  3. WT/TPR/S/113 Trade Policy Review, p. 51.
  4. John Veerkamp.
  5. Burundi : Plus 4 bus de l’OTRACO.
  6. Otraco Travel Sample Keza.
  7. 1 2 3 4 Niyibigira 2023.
  8. L’OTRACO commence à travailler.
  9. Uwimana 2017.
  10. 1 2 Ndikumana 2023.
  11. Lancement des activités du Centre de contrôle.
  12. 1 2 Niyungeko 2023.
  13. Igiraneza 2024.

Sources