Modelling the economic impact of rickshaw transportation in Ghana: The case of kumasi

Abstract

Transportation has contributed to the transformation of many economies, yet in Ghana, the challenges of transportation coupled with high youth unemployment has led to the introduction of auto-rickshaws (two- and three-wheeled carts) in the public transportation service in urban and rural communities alike. The focus of the paper is to analyse the economic impact of the rickshaw as a means of public transportation in Kumasi, Ghana. The study relied on structural equation modelling (SEM) to analyse both the direct and indirect economic impact of rickshaw riders. In all, a sample of 459 rickshaw riders in the Kumasi Metropolis were obtained through cluster and systematic sampling techniques. It was revealed that most rickshaw riders are youthful and mostly unmarried with their net daily income of about 14 times the daily minimum wage in Ghana which asserts its economic viability. Gender and education characteristics were similar to countries such as Nigeria, Somaliland, and India. The study found patronage of rickshaw services to be largely due to convenience, affordability and reliability. The direct economic impact of rickshaw as a means of public transport was higher that its indirect impact when type of patrons was utilized as a mediating factor. Safety issues and harassment from authorities were the biggest challenges found to be faced by rickshaw operators. Regulation of commercial rickshaw operations through a stringent licensing system, training, and enforcement of minimum age for operators were recommended among others. Additionally, the government can generate revenue from their activities through income tax, insurance and roadworthy renewals and license acquisition.