The bus transport business is a very well-known mode of transportation. A bus, driven by a skilled driver, takes passengers from one place to another, within or outside a particular location.
You should take your time to digest this article. Africans who do not own vehicles are finding it more and more difficult to move around town these days. Every day, more than million Africans depend on commercial transportation to get them to their places of work, school or business.
In the absence of reliable public transportation systems to serve these people, several opportunities have become available to smart entrepreneurs who want to exploit this huge and lucrative demand.
This article explores these business opportunities and provides useful tips you could use to your advantage in the mass transport business in Africa!
How huge is the demand for human transport services in Africa? In a previous article, we looked at the lucrative opportunities in trucking and haulage of goods in Africa. The factors responsible for the huge volumes of goods being transported across Africa are also responsible for the bursting demand to move people around human transport.
In the s, the population of Africans living in cities was less than million. The proportion of Africans who now live in cities is higher than India 30 percent and roughly equal to China 45 percent.
At the current rate at which Africans are flocking to the cities, more than million more of us will become city dwellers within the next 20 years. At the moment, more than 50 African cities have a human population over one million.
What does a higher city population mean, you ask? People come to the city for a reason — to find work, go to school, or start a small or big business. As a result, there is a lot more movement in cities and towns than in the rural areas.
City people wake up in the morning and go to a job they already have, or move around town searching for one. Many other city people are either self-employed or own a small or medium-scale businesses. The ones who do not belong to either of these groups have to get to school.
Like food and water, we cannot do without it! Because millions of people and their goods NEED to move around every day in Africa, there exists a huge demand for transportation services. Given the inadequate and poorly maintained road networks on the continent, it would be hell if everyone had their own car!
Where it exists, the public transportation systems in many countries on the continent are inadequate, unreliable and poorly maintained. To address this shortfall, many countries license and allow private bus companies, taxi operators and ferry services to help meet the huge demand.
This has opened some interesting opportunities for African entrepreneurs to make good money while providing transport services that help to move people around.
We shall look at these opportunities in greater detail below. Most of them require little capital to startup and will work for both aspiring and established entrepreneurs. In fact, it is estimated that motorcycles make up more than 40 percent of all vehicles you can find around including cars, buses, trucks etc.
Every year, Africa imports more than one million different brands of motorcyclesespecially from China and India. This huge demand for motorcycle taxis is understandable. People on the move find it very affordable, flexible and fast.
Motorbikes are best at navigating bad road networks and can help you beat city traffic when it really matters! They are also able to enter remote areas where roads are either too bad or non-existent. Although motorcycles frequently feature in fatal accidents, its positive qualities have led to the huge and rising demand for motorcycle taxis in many parts of the continent.
There are two common ways entrepreneurs make money from the motorcycle taxi business. Apart from a Hire-Purchase arrangement discussed later in this articleanother popular way is to buy motorcycles and hire them out to riders for a daily rent.
Depending on the volume of business in the location, this rent is a fixed amount and can be up to 30 percent of the daily earnings. The riders under this arrangement are responsible for fuel costs and keep any amounts above the daily rent paid to the owner.
The owner entrepreneur remains responsible for registration, insurance, maintenance and repair costs. Because unemployment remains high in many parts of Africa, many young people now depend on motorcycle taxis to earn a living.
Without the capital to buy a motorbike for themselves, these guys have to rely on entrepreneurs who can provide these bikes and earn rent on them.
Its many names on the continent include: Tricycles have become a neater and less accident-prone alternative to motorcycles which have been banned from major roads in big cities like Lagos Nigeria. Like motorcycles, tricycles are preferred by people who want to travel short distances within cities and towns.
Although they can carry up to 4 — 5 passengers at a time, tricycles are also flexible, cheap for commuters and can navigate narrow and congested parts of town.This sample business proposal and haulage business plan will assist you in planning and starting your haulage business in Nigeria.
Haulage involves the movement of goods by both rail and road, but since the collapse of rail system in Nigeria, road haulage has taken the lead.
The transport business in Nigeria is a lucrative enterprise for people who understand the venture, knows the local terrain, and can implement a good system of operation. John-Paul Iwuoha is an author, impact entrepreneur, business strategist and founder of Smallstarter Africa.
He works with entrepreneurs and investors to start up and grow businesses in Africa. He works with entrepreneurs and investors to start up and grow businesses in Africa.
Business Plan for the Transportation Industry in Uganda and East Africa. Transportation in Nigeria Air transport Water transport Road transport Rail transport Documents Similar To Business Plan Template for a Transport Company. Sample Business Plan - Car Hire.
Uploaded by. Buali Yahya/5(26). Luxurious Buses in Nigeria started its operation 59 years ago with Ekenedili Chukwu Transport company taking the lead as the oldest transport company in Nigeria. As at today, a lot of Transportation companies has sprang up with a lot of buses in their fleet.
This article is a comprehensive list of over free sample business plan templates that give an easy start to aspiring African entrepreneurs and small businesses.
Transport and Logistics John-Paul Iwuoha is an author, impact entrepreneur, business strategist and founder of Smallstarter Africa. He works with entrepreneurs and investors.