Ride-hailing companies in Abidjan, the commercial capital of Cote D’Ivoire have been concerned for the past few days. This week, the regulating authority for domestic transportation reminded us that a decree issued on December 15, 2021 governs the activity, although it was passed without much fanfare. The decree lays up a stringent legal framework for VTC companies. 

Major platforms like Uber and Yango, as well as Ivorian entrepreneurs, have previously taken advantage of a legal ambiguity to compete unfairly with metered taxis. This has pushed the country’s government to regulate the VTC industry at the end of 2021 in a country where the transportation sector is extremely powerful.

The decree’s provisions are frightening. From now on, platforms will now have to pay 20,000,000 CFA francs (approximately 30,000 euros) per year to exercise their rights, major setback for the nation’s fledgling startups. 

Read also : Côte d’Ivoire Mulls Tax On Ride-hailing Services

For the first time in history, all drivers will also have to pass the CACR, a driving test that has hitherto only been mandated for truckers.

Again, vehicles employed for VTC activities must have at least 114 horsepower, according to the decree. 

According to Kouamé N’Da, president of the Mutual Entrepreneurs de VTC, the new law basically removes 90% of the current VTC fleet in Côte d’Ivoire. 

“Today, the VTC at least creates 40,000 direct jobs. The law, in its current form, does not work in any way. We need 114-horsepower automobiles, which cost 14 million CFA francs on the dealer fleet. I’m not sure who’s going to put down the 14 million CFA francs to buy a car. In reality, the decree isn’t strictly bad; it has some nice portions, but there are several areas in which it may be improved. For us, it’s about how best to assist the government in establishing regulations in our field of work,’’ Kouamé N’Da said. 

Amadou Koné, the transport minister, has promised that he will once again meet with all of the sector’s players. 

“Workshops on the decree’s implementation will begin next week,” the minister said. 

Private-hire driver licenses (VTC) are usually used by ride-hailing companies like Uber in countries where they are regulated. 

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Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer