Autonomy of Regulatory Authority to Effectively Provide Regulatory Services in Tanzania: A Case Study of LATRA

Abstract

The establishment of regulatory authorities is geared towards regulating or stabilizing the market economy through fostering fair competition and setting guidelines that safeguard consumers and nurture the private sector. The study was generally geared to assess the autonomy of regulatory authorities to effectively provide regulatory services in Tanzania, taking the case study of the Land Transport Regulatory Authority (LATRA). This study was guided by four specific objectives, namely: to determine the ability of LATRA to effectively provide regulatory services in Tanzania; to assess institutional frameworks that influence LATRA to effectively provide regulatory services in Tanzania; to assess legal frameworks that influence LATRA to effectively provide regulatory services in Tanzania; and to explore challenges facing LATRA to effectively provide regulatory services in Tanzania. Transportation, SERVIQUAL, and agency theories were used to support this study. LATRA was used as the case study, targeting a population of 123, among which were LATRA employees as regulatory authorities, the Tanzania Bus Owners Association (TABOA) as service providers, and commuters on public transport as service users. The researcher employed simple random sampling and purposive sampling procedures to get a sample size of 55 respondents from the targeted population. The study used an interview schedule guide and a questionnaire to obtain data from the field. The data were analysed using the Statistical Package for Social Sciences (SPSS). The study found that LATRA has been providing various regulatory services, such as the issuance and cancellation of public transport permits and licenses, reviewing and setting rates and charges, and also imposing sanctions on entities that contravene regulation policies and laws. The current institutional framework affects the smooth functioning of LATRA and its ability to effectively provide its regulatory services. This is due to LATRA’s administrative incapacity, poor management support, and financial independence, which affect its autonomy to effectively provide regulatory services. The smooth functioning of LATRA is hindered by political interference, limited administrative competencies, limited transparency, the use of the Tanzania Police Force (TPF) to deal with regulatory issues, the invisible hand of the Tanzanian government in LATRA’s daily operation, as well as LATRA’s institutional and legal frameworks, which reduce the practical aspect of LATRA's autonomy in discharging regulatory functions. The study further recommended that the LATRA policy, institutional framework, and legal framework should be overhauled or repaired in order to remove or reduce political interference in LATRA operations, which affects the autonomy of LATRA.