Addis Ababa to Phase Out Code One Taxis, Push for High-Capacity Buses











Addis Ababa is preparing to phase out its ageing fleet of Code One taxis as part of a sweeping transformation of the city’s public transport system. The move — driven by a new transportation policy prioritising high-capacity buses and metered taxis carrying more than 25 passengers — aims to ease congestion, reduce air pollution, and modernise urban mobility.

Ato Dagnachew Shiferaw, Operations Director at the Addis Ababa Transport Bureau, said the city’s future strategy focuses on shifting commuters towards larger-capacity public vehicles. “One bus can replace about eight taxis,” he noted, adding that buses are more efficient in terms of road space, fuel economy, and travel affordability. He urged residents to increase their use of public transportation to ensure the long-term sustainability of the city’s mobility network.

Aging Fleet and Compliance Gaps

The Deputy Director of the Transport Bureau’s Operations Department said most Code One taxis no longer meet the city’s taxi service standards, with many vehicles well past their operational lifespan. Instead of a complete phase-out without alternatives, the government plans to support operators in upgrading to high-capacity, metered taxis that can serve more passengers per trip.

The policy shift has already resulted in route restrictions on major corridors such as New Gebya Junction, Garment Junction, and Jemo Junction. Authorities say the move not only aligns with the new transport strategy but also addresses fare abuses by drivers on long routes, where trips were often cut short to overcharge passengers.

New Regulations Add Financial Pressure

These changes come against the backdrop of a strict new directive introduced by the Ethiopian Ministry of Transport and Logistics in October 2024, aimed at improving safety and efficiency in public transport. Under the directive, minibus taxi operators must now obtain a competency license under stringent conditions. Losing a license carries a penalty of ETB 5,000, while carrying an extra passenger can result in fines of ETB 1,500.

For operators already operating on slim margins, the impact is significant. Ayalew Siyoum, Chairman of the Addis Ababa City Minibus Taxi Associations, said drivers earn just ETB 4.50 per passenger for a 2.5 km trip — a total of ETB 50 for a fully loaded 12-seater — while facing rising fuel prices and inflation. “Many drivers are left with no choice but to ask passengers for additional payments or take on extra passengers just to make ends meet,” he said. Ayalew has called for a revision of the fare structure to allow drivers to sustain their livelihoods without resorting to overloading or fare hikes.

Balancing Modernisation and Livelihoods

The October directive forms part of a ten-year plan to create a reliable, integrated, and safe transport system. However, urban transport expert Birhanu Zeleke (PhD) warned that the sharp increase in penalties disproportionately affects small operators. He believes that while many regulations are intended to benefit the public, the government must also provide financial support measures — including loans and tax-free vehicle imports — alongside awareness and skills training for drivers.

Minibus operators are particularly vulnerable. Many vehicles are over 30 years old and prone to frequent breakdowns. Without clear guidance or financial assistance, meeting modernisation requirements could force some operators out of business. One anonymous driver in Megenagna expressed fears about vehicle shortages, saying, “We do not feel secure. Even the vehicles we have are insufficient for the community, especially if we were to remove about half of them.”

Ayalew has urged the government to treat minibus drivers like homeowners affected by urban redevelopment — offering targeted assistance for vehicle upgrades. He also proposed prioritising minibus drivers during fuel shortages, including setting dedicated refuelling time slots, to keep essential transport services running without interruption.

Public-Private Partnerships and Electric Mobility

Transport stakeholders argue that public-private partnerships could play a critical role in this transition, particularly in promoting electric minibuses and building local assembly and maintenance capacity. Industry players also recommend that operators collaborate to share best practices, improve customer service, and explore innovative service models that maintain affordability while boosting efficiency.

The Road Ahead: Fast Bus Network by 2026

According to the city’s transport strategy, a new rapid bus service will launch in 2018 Ethiopian Calendar (2025/26 Gregorian Calendar), beginning with a high-speed route from Jemo to Kerera. Within two years, Addis Ababa is expected to operate a dedicated bus rapid transit (BRT) system that will replace traditional taxis on key corridors.

For now, however, the challenge lies in managing a complex transition — balancing the modernisation of an outdated transport fleet with the economic realities facing operators, and ensuring that commuters continue to have access to affordable, reliable transport.