Quantifying the economic benefits of public transportation in Kampala

  • Traffic congestion is a major issue in cities around the world with potentially negative effects on outcomes ranging from economic activity to health.
  • This brief quantifies the cost of congestion in the Greater Kampala Metropolitan Area (GKMA) and estimates the economic benefits of a planned Bus Rapid Transport (BRT) system.
  • The researcher finds the daily cost of congestion in GKMA in was equal to USD 1.5 million (4.2% of GKMA’s daily GDP).
  • On the other hand, the two BRT lines planned to be implemented in Kampala city are estimated to lead to daily travel time reductions of 173,000 USD (0.5% of the GKMA’s daily GDP). This means the costs of construction can be recovered after 12 years.
  • The researcher makes three policy recommendations on how public investment in infrastructure can address congestion.