| Summary: | The level of supply of public transport increases proportionately with population size. However, increases in population growth and urbanization have led to several transport problems, including meeting the supply of transport services. The rationale behind the supply model as used in the study is generally found in economic theory, where vehicle operators/owners choose among alternative opportunities before investing in urban transport service industry. Despite the importance of the transport business sector to the Zimbabwean economy, the continued undersupply in the sector is alarming. The main objective of the study is to identify the factors affecting the supply of urban transport in Harare, Zimbabwe. The research seeks to find the reasons of the high mismatch of demand and supply in the urban public transport sector. These situations are related to finance, demand forecasting, management, high operational overheads, unviable fares, marketing, capitalization at start up and business planning. It also established that many entrepreneurs have high operational overheads as a result of inefficiency due to vehicle old age and high statutory safety requirements on vehicle fitness, which is forcing many large investors to opt to sell their passenger vehicles and venture into haulage trucks instead. By the end of the research we should be able to list the factors affecting investment in this sector in their order of importance such that coming up with solutions to those most important factors may just unlock a lot of investment into this sector This research established the notion that under investment in the transport sector are caused by lack of funding and non viable fares even though occupancy is very good. These factors will serve as a basis of modeling the supply situation in the study area. In addition, the study will outline some policy directions, which need to be considered in order to sustain the supply of urban transport services.
|
|---|
