The first SGR electric train from Dar es Salaam to Dodoma was launched on July 25, 2024, with over 1,000 passengers onboard. Photo courtesy
The Prevention and Combating of Corruption Bureau (PCCB) has recently exposed a significant issue involving passengers exploiting the electric train service (SGR) by paying lower fares than required for their intended destinations.
Christopher Mwakajinga, the Deputy Head of PCCB for Morogoro, reported that some passengers, who should alight at stations like Pugu, Ruvu, and Ngerengere, are instead traveling to Morogoro despite having paid less for shorter distances. This misuse undermines the revenue collection system and operational efficiency of the SGR.
Christopher Mwakajinga's bold revelation of fare evasion reveals his determination to tackle corruption and financial mismanagement. His investigation uncovered those passengers from Dar es Salaam are exploiting the SGR fare system by paying lower fares for stops like Pugu (Sh. 1,000), Soga (Sh. 4,000), Ruvu (Sh. 5,000), and Ngerengere (Sh. 9,000) but traveling to Morogoro instead.
This misconduct severely impacts the revenue and operational efficiency of the SGR, necessitating immediate reforms and stricter enforcement measures to address the financial and operational challenges facing the rail service.
This practice is compromising the financial sustainability of the SGR service, making it a no-brainer that stricter fare enforcement and system reforms are urgently needed to curb revenue loss.
Meanwhile, the profound impact of the SGR on the bus transport sector, evident from the dramatic decline in passenger numbers since its launch between Dar es Salaam and Dodoma on July 25, 2024, amplifies the urgency.
As the SGR siphons away passengers, failing to address fare evasion only exacerbates financial strains and operational inefficiencies, underlining the critical need for immediate corrective actions to stabilize both rail and bus services.
The Tanzania Bus Owners Association (Taboa) has reported that bus operators are struggling to compete with the SGR's efficiency and have had to reduce the number of buses in service.
Mustapha Mwalango, the Taboa Communications Director, revealed that while bus operators initially underestimated the SGR's impact, it is now clear that the electric train has drastically shifted passenger preferences.
The SGR's capacity to carry between 700 and 900 passengers per trip far surpasses the current bus services. This shift has led to a reduction in the number of buses operating between Dar es Salaam and Morogoro from around 20 to 22 per day to just six, and from 10 to four on the Dar es Salaam-Dodoma route. Mwalango advocates for bus operators to explore new routes to stay viable in this changing transportation landscape.
Edward Magawa from Shabiby Buses noted that the decline in passenger numbers affects not only bus companies but also small-scale vendors and businesses near bus stations. He has urged the government to establish bus stations near SGR terminals to facilitate smoother connections for passengers.
Johansen Kahatano, Director of Road Transport Regulation at Latra, confirmed the downturn in bus operations, noting a 20% decrease in passenger numbers and a reduction in bus services between Dar es Salaam and Morogoro. Latra is planning a stakeholder meeting to address these challenges and improve connectivity.
Adding to this complexity, the Controller and Auditor General (CAG) Charles Kichere reported in March 2024 that the Tanzania Airlines Corporation (ATCL) suffered a loss of Sh. 56.64 billion, a 61% increase from the previous year’s loss of Sh. 35.24 billion.
Conversely, the National Health Insurance Fund (NHIF) reduced its losses from Sh. 205.95 billion in the 2021/22 fiscal year to Sh. 156.77 billion in 2022/23, thanks to a 14.6% increase in contributions and a 10% rise in expenditure.
The report also highlighted some improvements among state-owned enterprises, including the Tanzania Communications Corporation (TTCL) and the Tanzania Railways Corporation (TRC), which have managed to mitigate their losses.
However, entities like the Tanzania Postal Corporation (TPC) and the Tanzania Petroleum Development Corporation’s (TPDC) subsidiary TANOIL continue to incur significant losses.
President Samia Suluhu Hassan's call for state-owned enterprises to embrace commercial practices highlights the urgent need for systemic reforms across Tanzania's public sector.
With 248 institutions under the Treasury Registrar’s oversight, overcoming operational inefficiencies is critical to maintaining competitiveness and financial sustainability.
This necessity is underlined by the recent revelations from Christopher Mwakajinga, Deputy Head of the Prevention and Combating of Corruption Bureau (PCCB) in Morogoro.
Mwakajinga exposed how some passengers, who should disembark at stations like Pugu, Ruvu, and Ngerengere, are exploiting the fare system by traveling to Morogoro despite paying for shorter distances. This abuse threatens the SGR's revenue integrity and operational efficiency.
To address these challenges effectively, Tanzania can draw lessons from other African countries with successful SGR systems. For instance, Kenya’s SGR project has implemented stringent fare enforcement measures and sophisticated ticketing systems to prevent fare evasion and ensure accurate revenue collection.
Additionally, Ethiopia’s SGR has integrated its rail services with other modes of transport, such as buses, through well-coordinated transport hubs to facilitate smoother passenger transitions and maximize revenue potential.
By adopting similar strategies—enhancing fare enforcement, upgrading ticketing technologies, and creating integrated transport solutions—Tanzania can mitigate revenue losses and bolster the SGR's long-term success. Such reforms will not only secure the financial sustainability of the SGR but also ensure it serves as a robust component of the nation's transportation infrastructure.
