Booming motorcycle taxi business in Tanzania

By Mnaku Mbani

Tanzania has been named as among of the largest two-wheeler (bodaboda) market in Africa and the number is expected to double in the next five years. According to the new report published by Market Watch the two-wheeler market in Africa is forecast to cross US$ 9 billion by 2021.

The report shows that South Africa, Nigeria and Tanzania are the largest two-wheeler markets in Africa, followed by Kenya, Algeria, Uganda, Egypt, Morocco, Angola and Ethiopia.

According to the World Bank, the population of Africa is forecast to reach 2.8 billion by 2060. As the population of the continent continues to grow at an alarming rate, governments and other stakeholders are coming under pressure to develop and strengthen transport networks.

Public transportation system in African countries is still inadequate and poorly developed, and consequently, two-wheelers are becoming a key medium for transportation in urban as well as rural settlements.

“In Africa, two-wheelers offer an affordable mode of transportation. Workers as well as travellers, who earlier used to prefer other modes of transportation, are increasingly switching to two-wheelers, to avoid the frantic traffic in the cities across major African countries,” says a report.
Moreover, the report has noted that the rising fuel prices are also driving demand for two-wheelers in the continent due to their higher fuel efficiency.
Furthermore, as driving license is not mandatory for driving gearless two-wheelers in majority of the African countries, tourists visiting the continent usually opt for two-wheelers for transportation purpose.
On the basis of vehicle type, the two-wheeler market in Africa has been segmented into two categories, namely, motorcycle and scooter.
Among these categories, motorcycle segment dominated the continent's two-wheeler market in 2015, owing to various associated advantages such as quicker acceleration, better engine capacity, large fuel tank, larger wheel base and easy maintenance.
“ The booming motorcycle taxis business in African countries is further augmenting demand for motorcycles in the continent. Backed by rapid urbanization, growing population and inadequate means of transportation, the segment is anticipated to maintain its dominance over the next five years as well,” says a report.

In Africa, South Africa was the major demand generator of two-wheelers in 2015. Growing per capita income, increasing employment opportunities, developing infrastructure and vast reserves of natural resources are driving the country's economic growth.

According to the Association of Motorcycle Importers and Distributors, the country registers huge demand for premium motorcycle with an engine capacity of more than 500cc, and the same trend is expected to continue over the next five years as well.

“As these high-end motorcycles are comparatively costlier than other motorcycles with low engine capacities, the two-wheeler market of South Africa is expected to grow at a healthy pace in value terms over the next five years.", said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.