Impact of the Investment in Motorcycle Taxi on Socioeconomic Development in Mozambique: A look at the District of Mocuba

Abstract

The research analysed the impact of motorcycle taxi investment on the socioeconomic development of the Mocuba District in Zambézia province in Mozambique. Objectively, we sought to investigate the extent to which investing in motorcycle-taxi allows us to obtain the desired return and consequently the socioeconomic development of investors in this means of two-wheeled transport in the district of Mocuba. We applied a quantitative methodology to be able to estimate the costs and revenues through a survey with closed questions addressed to 200 moto-taxi drivers. However, the investment plan of the moto-taxis was made, where it was possible to obtain cash-flows to evaluate the profitability of the investment through classical criteria such as: PAYBAC, NPV, CBR, and IRR. Among other results, we conclude that the investment is economically viable because the cash flows generated are sufficient to cover the capital invested by the moto-taxi drivers. As for the impact of the moto-taxi on socioeconomic development, we conclude that the service has a positive impact since it is a job generator, guaranteeing food security; education; health and housing for the moto-taxi drivers and their families. Therefore, despite the advantage being turned to the social context, we note that the lack of taxation of this means of transportation contributes little to state revenues and consequently to the operationalization of local development programs outlined by the government.