Public transporters are facing financial constraints and organisational hurdles as they undergo a transition from associations to commercial entities, adhering to stringent standards set by the Ministry of Transport & Logistics. Officials believe the directive, ratified a month ago by Minister Alemu Sime (PhD), aims to develop stronger competition, transparency and improved services within the sector.

However, the transition is proving to be arduous, with difficulties exacerbated by the lasting impacts of the northern conflict. Berhane Zeru, president of the Ethiopian Transport Employers Federation for 9,000 members, disclosed that the transition is challenged by the ongoing economic downturn and further complicated by delayed compensation for services during the northern war.

"At least five more months are necessary," Berhane told Fortune.

Under the directive, monthly reporting to the Ministry is mandatory, and entities formed under a share company must undergo asset auditing by a general assembly before the transfer to the new company. Stringent requirements, including GPS equipment, periodic registration of rented vehicles, minimum vehicle quotas, and tariff categories for different travel classes, have been established.

As part of the Ministry's 10-year strategic overhaul of the sector, which includes plans to phase out petrol-powered automobiles for personal use and fuel subsidies, the commercialisation of transport modalities is deemed foundational.

Assefa Hadis, an advisor at the Ministry, defends the timeline, stating that transporters have had sufficient time for the transition. Drawing from experiences in the "Western world", Assefa said their success nearly guarantees its effective implementation in Ethiopia. He believes the policy shift will enhance service delivery and kindle competition.

"They only have a few weeks left," he told Fortune.

However, the policy shift has faced significant criticism from the private sector ever since the Proclamation that led to the change was ratified by Parliament, with minor extensions on the time required to meet the minimum vehicle quota over the two years.  Assefa acknowledges the comments but emphasises the need for the sector's effective commercialisation.