Consumers to dig deeper into pockets for goods
Sunday May 03 2020
Cargo trucks bound for Rwanda are congested at the Uganda-Rwanda One Stop Border Post of Mirama Hills. The decision by Rwanda to clear all cargo being trucked in at the border crossing is expected to lead to increase in the prices of goods as the extra transport cost will be passed on to the consumers. PHOTO | MORGAN MBABAZI
The recent decision by Rwanda to clear all cargo being trucked in at the border crossing to curtail the spread Covid-19, is expected to increase the cost of transport from Dar es Salaam to Kigali.
The changes, expected to be implemented immediately, are expected to increase prices of goods, as the extra cost will be passed on to the consumers.
Rwanda has experienced a spike in the number of positive Covid-19 cases, registering 22 people on Monday, the highest number in a single day, all linked to cross-border truck drivers especially from Kenya and Tanzania.
This prompted the government to take tough measures such as moving all its inland Customs cargo clearing services to border crossings.
A statement issued by the Rwanda Revenue Authority on Monday, shows that it is now a requirement for every cross-border cargo truck to have two drivers, to make sure that the one from the departure point gets tested at the border and stays there, as the second one from Rwanda takes over.
NEW MEASURES
However, transporters say the new measures have serious repercussions. “We understand the government is taking these measures to save lives but the reality is they are coming with added costs,” said Ndaru Abdul, a logistics operator and president of Rwanda Transporters Association.
“In our cost estimates, we are looking at between $300 and $500 increment as a result of these changes.”
He said ordinarily, transporters pay the trip from Dar es Salaam to Kigali as one route, but the new order means they will be paying for two routes; from Dar es Salaam to Rusumo and from Rusumo to Kigali. It costs up to $2,800 to transport a container from Dar es Salaam to Kigali, and up to 300 trucks transit through that route every day.
He, however, supported government’s intervention, especially in having banks suspend loan payment especially by affected operators.
“It will take us all long to recover from this, but at least some banks have already effected the loan suspension, some businesses have been given a moratorium of three to six months.”
The government interventions are, however, yet to have any relief to some traders especially importers of non-essential goods, who are worried that their pains will even continue even post-Covid-19.