The Minibus Operators Establishment Survey was conducted in March 1999 and was the first survey to collect data on the structure and performance of minibus establishments in Malawi.
A total of 579 minibus operators out of which 314 operators were registered members of the Minibus Association of Malawi (MAM) were covered.
The survey covered the following areas:
Some major highlights of the Minibus Operators Establishment Survey in form of text, tables and charts have been presented as follows:
The survey shows that 43.8 percent of all minibuses covered operate in the Southern Region while 43.1 percent operate in the Central Region. Despite this equal distribution of minibuses in the Southern and Central Regions, it is the minibus operators in the Central Region that earn more revenue annually from the services they render compared to those in the Southern Region where K162 million were earned, K79 million less the earnings of the Central Region.
In both Southern and Central Regions, most receipts have come from passenger fares constituting 99 percent each of the total regional revenues. Annual total receipts accruing from minibus operations amounted to K461 million and expenditure totalled K329 million.
The expenditure pattern of all minibus operators in the country shows that about 42 percent of their incomes were spent on petrol followed by about 17 percent each on services / spare parts and tyres / tubes and about 16 percent on wages and benefits in kind.
Further, the findings also show that 68 percent of minibus operators did not receive any credit facility in the last 12 months of the survey period. Results indicate that lending institutions only lent out almost 13 percent to the minibus operators.
Table 1 shows slightly over 57 percent of the minibus operators in Malawi faced access to capital difficulty in setting - up their business. The second major difficulty faced was other1 (close to 19 percent). Technical know - how was the least difficulty faced in setting - up business in Malawi (9 percent) in Malawi.
Close to 28 percent of the minibus operators in the Central Region indicated facing access to capital difficulty in setting - up business while slightly over 21 percent of the minibus operators in the Southern indicated facing a similar difficulty in setting - up their business.
About 10 percent of the minibus operators in the Southern Region faced "other" Difficulty in setting up their business while close to 6 percent of the operators in the Central Region faced the same difficulty.
Minibus operators from the Northern Region faced least difficulty in setting up business in both technical know - how (less than 1 percent) and government regulations (close to 2 percent).
Table 1. Distribution of Difficulty in Setting Up Business by Region
Table 2 shows the distribution of difficulty faced in running Minibus business by region in Malawi. The table indicates that spare parts difficulty ranked highest as slightly over 59 percent of the operators in the country faced this difficulty. Only about 1 percent of the operators faced access to credit difficulty in running their businesses while about 12 percent of the operators faced both road condition and "other1" difficulties and close to 16 percent of the operators faced competition difficulty in running minibus business.
The major difficulty faced in running minibus business was spare parts. Slightly over 24 percent of the operators in the Southern Region faced this difficulty of spare parts followed by Central Region (Close to 27 percent). The least difficulty faced in running minibus business in all the three regions was accessing credit.
Table 2: Distribution of Difficulty Faced in Running Business by Region
Table 3, the distribution of sources of credit by region in Malawi, indicates that minibus operators from the Central Region ranked highest (close to 49 percent) in accessing credit from money lenders followed by Southern Region (close to 39 percent).
About 44 percent of minibus operators in the Central Region accessed Credit from lending institutions with Southern region operators ranking second (slightly over 38 percent).
Very few minibus operators in the Northern Region indicated accessing credit from relatives (close to 5 percent) followed by Central Region (about 42 percent).
Minibus operators from both Southern and Northern Regions indicated having accessed equal credit from transfers from abroad (close to 29 percent each).
Most operators in the Central Region obtained credit from transfers from abroad (about 42 percent). About 43 percent each of the minibus operators from both the Southern and Central Regions did not indicate accessing credit from any other source (None).
Most operators in the Southern Region (66 percent) indicated accessing credit from "other" sources.
Table 3: Distribution of Sources of Credit by Region
Table 4 shows that total average daily receipts amounted to about K1.3 million. Although the number of operators in the Southern and Central Region were almost the same, Central Region minibus operators collected more receipts (about K660,000) than Southern Region (K444,000). Northern Region average daily receipts amounted to slightly over K158,000.
Table 4: Average Daily Receipts From Passengers and Freight by Region
Chart 1 shows the percentage distribution of total average daily receipts (passenger and freight) by region. Central Region collected about 52 percent of the total average daily receipts while Southern region and Northern region collected close to 35 percent and 13 percent of the receipts respectively.
Table 5 shows that total annual expenditure of minibus operators amounted to about K329 million out of which close to K277 million was the total annual cost of operating minibuses1 in the country. The total annual cost of operating minibuses was highest in the Central Region (close to K127 million) followed by Southern Region (K116 million) and Northern Region (K34 million).
The total annual expenditure on fuel was the highest (about K137 million) followed by expenditure on service / spare parts (close to K57 million); tyres / tubes (K55 million) and wages / benefits in kind (slightly over K51 million).
Central Region minibus operators indicated spending most funds on fuel (about K69 million) than any other region in the country. Southern Region operators spent over K53 million on fuel while close to K15 million was spent by Northern Region operators.
Minibus operators in the Northern Region spent least money on service /spare parts (K5 million) while slightly over K19 million and about K32 million was spent by Central Region and Southern Region minibus operators, respectively.
Annual expenditure on tyres / tubes was highest in the Central Region (just over K25 million). Expenditure on similar items totalled about K20 million in the Southern Region and close to (K10 million) in the Northern Region.
Table 5: Distribution of Total Annual Cost of Operating Minibus by Region
Chart 2 shows that 41 percent of the total annual cost of operating minibus business constituted petrol costs while 17 percent each constituted costs incurred on service / spare parts and tyres / tubes respectively. Wages and other benefits represented about 16 percent of the total annual cost of operating minibuses.
Other costs, which comprises of expenses on lubricants, gate charges, licence fees, certificate of fitness (COF) and insurance cover constituted 9 percent of the total annual costs of operating minibuses.
Chart 3 shows the distribution of amount of insurance cover by type of insurance in Malawi. Insurance cover totalled about K7 million of which close to K4 million (about 54 percent) were Third Party. Comprehensive insurance amounted to just about K3 million (close to 40 percent). About 5 percent of the insurance cover was Road Act.
Table 6 shows that on average, minibus drivers and callers earned most earnings per month (close to K1,600 each) followed by conductors who received about K1,100. The table also indicates that average earnings for drivers in the three regions of the country were more or less evenly distributed with Southern Region ranking highest (close to K1,900) followed by Central Region (K1,500) and Northern Region (K1,300).
Minibus callers in the Central Region earned most earnings compared to the rest of the callers in the Southern and Northern Regions. Callers in the Central Region received about K2,100 while in the Southern Region they earned K1,600 and in the Northern Region K1,100.
Conductors in all the regions earned more or less similar income with Southern Region ranking highest (K1,300) followed by Central and Northern Regions(K1,000 and K900) respectively.
Table 6: Distribution of Average Wage Bill by Category of Minibus Employee and Region