Page 17 - LUA September - October 2024
P. 17

shares its border with four countries, the   Programs, Association of Cross Border   relations with neighbouring countries
         Democratic Republic of Congo (DRC) in   Traders Rwanda, while talking about   have affected the movement of goods due
         the West, Uganda in the North, Tanzania in   how the landlocked status increases the   to the landlocked borders. He also spoke
         the East and Burundi in the South. Thus it   logistics costs.       about the road infrastructure available
         depends on ports in Kenya's Mombasa and   The association aims to increase   within the country which he believes are
               Tanzania's Dar es Salaam to move   Rwandan exports to other countries   good but not enough.
                their goods via sea.       by working with government agencies   “Rwanda has very good road network
                   “First of all, you are relying   including the National Agricultural Export   but it is not enough. It doesn't get deep
                 on the road network of    Board (NAEB).                     into the villages where those commodities
                  another country,” said Blair   Ayesiga also notes that political   are produced. People have to rely on
                   Robert Ayesiga, Director of   instability in the region and   motorcycles or other means because
                                                                             mountainous regions in Rwanda are
                                                                             difficult terrains to navigate. So people use
                                                                             the manual means of transportation, put
                                                                             them in a designated collection area, let
                                                                             small trucks pick them up and transport
                                                                             them to Kigali,” he added.
                                                                                 Meanwhile, Sebahizi also
                                                                                 acknowledges the lack of
                                                                                  infrastructure and the resultant
                                                                                  increase in logistics costs as one of
                                                                                  the important challenges that must be
                                                                                  addressed by the country.
                                                                                    “The cost of transport and logistics
                                                                                  in our country is more than 30 percent
                                                                                 higher than the regional average. So we
                                                                             have to invest a lot in infrastructure,” he said.
                                                                                For instance, Rwanda is building an
                                                                              airport 40 kilometres south of Kigali
                                                                                International Airport in Bugesera
                                                                                   district with a dedicated cargo
                                                                                    terminal and 150,000 tonnes
                                                                                     annual cargo capacity. Aiming
                                                                                     to finish construction by 2026,
                                                                                     Qatar Airways owns a 60 percent
                                                                                     stake in the airport. Along
                                                                                     with Qatar Airways' expected
                                                                                    acquisition of a 49 percent stake
                                                                                    in Rwandair, the flag carrier of
                                                                                    Rwanda, logistics companies
                                                                                   and shippers in the country are
                                                                                   also expecting increased air cargo
                                                                                   capacity out of Rwanda.
                                                                                      Ayesiga reported that the
                                                                                     construction of the new airport is
                                                                                     progressing very rapidly and he
                                                                                     believes that the airport is going
                                                                                     to position Rwanda as a trading
                                                                                     hub of East Africa.
                                                                                        “People dealing with logistics
                                                                                       are going to be benefiting
                                                                                       from that,” he added.
                                                                                         Myriam Izabayo, Customer
                                                                                       Relationship Manager of
                                                                                       Africa Global Logistics (AGL)
                                                                                       Rwanda, believes that the new
                                                                                      Bugesera Airport coupled with
                                                                                    additional freight capacity with

          SEPTEMBER - OCTOBER 2024                                                                         LUA 15
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