Yango spends N$1.3m on permit fees

YANGO Namibia says it has submitted about 1 500 permit applications and spent N$1.3 million on fees while navigating administrative delays and strict government ultimatums.

Country general manager Alex Mungai says out of 1 480 applications for permits that were submitted to the Roads Authority (RA), 298 are still pending due to outstanding documentation.

This follows a directive from the Ministry of Works and Transport for all Yango drivers to comply with the law or risk losing the right to operate.

Yango has, however, not complied, citing high temporary costs and systemic delays.

Mungai says the company has spent N$1.3 million on its drivers’ temporary operating permits while waiting for permanent ones.

“This was just for initial applications, and once pending documents are in, we will make submissions for the rest. We also processed 1 500 total applications submitted to the Roads Authority,” he says.

The authority could not be reached to confirm these figures.

Transport minister Veikko Nekundi last month told The Namibian that the e-hailing sector has engaged in good faith since last year, and has not complied.

Operators were given 28 days to comply or risk action by the Ministry of Information and Communication Technology.

Nekundi said the ministry would develop strategies to identify and act against illegal operators.

“Yango is behaving as if it is the operator. We are fed up. If they don’t comply, the information ministry will take action,” he said.

Yango’s partners, businesses that hire drivers to provide transport, delivery and logistics services through the app, has said obtaining operating permits is difficult within the given time frame and given the cost of obtaining a permit.

They said drivers cannot afford the cost of permits. Obtaining a permanent permit takes up to nine months, while a temporary one lasts for 28 days only and costs N$850.

“Yango fully supports the formalisation of the e-hailing industry in Namibia. At the same time, the application process involves several administrative stages that many drivers are still navigating within a limited time frame,” Mungai says.

He says partner drivers applying for permits continue to experience delays in document processing, lengthy administrative procedures, limited understanding of application requirements among some operators, financial and operational pressure linked to the application process, and high application volumes within the current 56-day compliance period.

Yango is currently operating in 35 countries, with Namibia being the fastest-growing market, Mungai says.

Mutakela Empire Tours and Transfers managing director Ronald Mutakela describes the cost as “ridiculous”.

“It is a fight against employment opportunities given to partners to provide for the nation. We employ families, drivers, and young people with degrees, but who are unable to find a job.

“Yango is also a safe ecosystem as it is easy to report crime,” he says.

Mutakela says the process of applying for a permit is challenging.

“It takes longer, like two weeks, and sometimes the National Traffic Information System is offline for three days. The government should cut certain things, because the process is quite long for an ongoing business,” he says.

Yango has implemented a 5% increase in ride fares from 31 March.

This was reportedly done to keep up with fuel price hikes and encouraging drivers to be compliant.

The national taxi fare was also increased last week from N$13 to N$15, effective from 18 May.

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