adminMunicipal Reporter
City Parking should pocket $1 million in the first year of its business in the Ghanaian capital, Accra, latest estimates say. Harare City Council runs City Parking.
City Parking entered a joint venture arrangement with Accra in a deal that involves traffic enforcement, clamping and towing. Harare City Council has a 45 percent shareholding in the deal.
In an interview on Wednesday, City Parking general manager Mr Simon Muzviyo said the joint venture would be operationalised this month.
“The normal business process if you start a business outside the country is that you fund the project as an investor but in the case of Accra parking business, the supplier of the parking system agreed that we can pay for the equipment via a hire purchase agreement.
Accordingly, the project in Ghana will largely finance itself.
“The City will benefit from the dividend the Accra business will declare. The projected yearly revenue forecast for the first year is approximately $1 million. The business is projected to grow in phases as we introduce parking to areas that have no properly regulated parking in Accra. The aspect of being in control of enforcement is a big advantage,” he said.
City parking expects to rake in $13 million in the next five years.
Online Reporter