The iconic blue taxi drivers colloquially known as 'Lada,' are considering the formation of a robust new organisation and advocate for their interests as frustration mounts over delays in receiving vehicles promised by Elauto Engineering Plc. Over 8,000 drivers are disillusioned and questioning the legitimacy of their initial deposits of nearly one billion Birr to the company in three years with only a little over 240 cars delivered.

The confluence of anxious drivers eagerly awaited the cars initially promised within four months. As inflation surges and the cost of the promised vehicles doubles to 1.2 million Br, drivers are growing sceptical about the transparency of the process, wondering if they were misled from the beginning. The discontent has escalated to the point where an association was accused of defamation and had its contract suspended six months ago.

The saga surrounding Addis Abeba's Ladas has spanned for four years, involving the suspension of duty-free privileges by the Ministry of Finance, the establishment of a new factory in Dire Dewa City by Elauto, and a growing animosity among the close to 200 associations representing the drivers.

Executives indicate that 540 semi-knock-down vehicles assembled for distribution to the drivers have been put at the Dire Dewa plant for the past eight months, inaugurated a year and a half ago with over half a billion Birr.

Esayas Tafesse, director of marketing at the Company, cited a three-month-old ordinance by the Ethiopian Customs Commission, which banned imports through partialised letters of credit, as the main culprit. He disclosed the assembled vehicles have been locked away only to ensure that the new ordinance would not jeopardise further imports.

He indicated progress in declaring the vehicles despite not specifying the number. Esayas argued the company had gone out of its way to actively seek finance for 3,000 cars from the Global Bank of Ethiopia, even though it was not contractually obligated.

"Distributing the vehicles would be to our advantage," Esayas stated.

Esayas revealed plans to distribute the vehicles in its fleet in the coming year if no external factors get in the way, signalling agreements with Bishoftu Automotive Industry and Lifan Motors.

While senior management at Elauto points to regulatory hurdles and changing policies as reasons for the delayed imports and distribution, the drivers allege reluctance from the company to take up loans from credit facilities.

Biniyam Melese, a representative of the Addis Abeba Lada Taxi Association, highlighted the challenges faced during the credit process, despite the initial agreement for 10,000 cars worth six billion Birr signed with the Commercial Bank of Ethiopia (CBE) three years ago. He noted changes in management and lending policies as contributing factors to the difficulties encountered in securing credit lines from 22 commercial banks.