Rwanda is seeking at least $1 billion to fund key road projects for the next four years.

The government plans to seek funding from different development partners, among them the World Bank, the African Development Bank, European Investment Bank and Arab Development Bank to construct at least 205 kilometres of roads. These include roads to Rwanda’s key trading partners on the Northern Corridor, particularly Uganda, and also the Democratic Republic of Congo.

This is in addition to constructing roads to industries, alternative routes around Kigali City and rehabilitation and maintenance of feeder roads to improve access to markets.

Last week, the country borrowed Rwf52 billion ($74.4 million) from the African Development Bank to finance the construction of 51km Gicumbi–Rukomo road, which will link Northern and Eastern Provinces. Construction works are expected to begin in March. The government will provide a counter fund worth Rwf3.2 billion ($4.6 million).

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“We do not simply build roads, we look at economic opportunities so that the returns are higher than the amount invested,” said Minister for Finance and Economic Planning Claver Gatete.

“We are looking at this because Nyagatare is on the border with Uganda — there is a lot of trade that goes on — this feeds into the country… If you can afford to bring your goods to the border with Congo, this means you have alternatives.”

The road construction is expected to facilitate trade between the secondary cities of Rubavu, Musanze, Gicumbi and Nyagatare. But Rwanda is also improving the road network to facilitate and expand trade with the DRC, which is its leading market though the trade remains largely informal. The main exported products are agricultural.

However, informal cross-border trade declined by 6.6 per cent in the first half of this year, to $52.5 million from $56.1 million, due to trade barriers imposed by DRC, in particular visa restrictions and introduction of taxes on exports from Rwanda.

Mr Gatete said the restrictions have now been removed. It is estimated that about 30,000 Rwandans cross to and from the DRC daily, the majority being informal traders.

The road, which is part of a 125 kilometre road, links the Northern Corridor to eastern Democratic Republic of Congo through Musanze-Rubavu border with Ngoma in the DRC. The road is expected to ease traffic in the capital Kigali as trucks transporting goods to the DRC will not necessarily have to pass through Kigali from the Kagitumba or Gatuna borders.

“The road will ease access to markets. It will also enable farmer to increase the value of their agriculture produce and ultimately their income,” Mr Gatete said.