Rwanda plans to build three ports on Lake Kivu as it seeks to boost its trade with the Democratic Republic of Congo.
Rwanda plans to build three ports on Lake Kivu as it seeks to boost its trade with the Democratic Republic of Congo.
Funding for the project is expected from TradeMark East Africa, which has committed $700 million to improve the competitiveness of the East African Community in intra-regional and global trade.
The funding of the project will fall under the second phase, running from July 2017 to June 2023, which was announced on November 21, shortly after the TMEA board meeting with donors in Kigali.
Rwanda plans to invest part of the $63 million it will get in harbour facilities on Lake Kivu.
For Kenya and Tanzania, much of the TMEA funding is to go into improving efficiency at the ports of Mombasa and Dar es Salaam.
“The plan is to create and improve the capacity and efficiency of lake transportation on Kivu by upgrading the facilities at Rubavu, Rusizi and Karongi,” TMEA Rwanda country manager Patience Mutesi said.
Developing these harbours will significantly increase trade. DRC accounts for close to 70 per cent of Rwanda’s trade volume, closely followed by Burundi and Uganda.
National Bank of Rwanda data shows that 65.8 per cent of Rwanda’s informal cross-border trade, worth $66.2 million in the first six months of 2016, was generated from DRC.
TMEA board chair Ali Mufuruki expects the second phase of the programme to boost EAC trade by $11.9 billion. Regional GDP is also projected to grow to $116 billion and create an additional five million jobs. Besides, three million people are set to be lifted out of poverty and at least $51 million will be generated in tax revenues during the six years.
Experts are also expecting the new strategy to reduce trade costs in East Africa by 10 per cent and reduce transport time by 15 per cent.
The TMEA programme also seeks to increase the region’s trade with the rest of the world.
“There should be co-operation among the various players across the region to enhance trade and improve lives,” Mr Mufuruki said.
Despite the challenges that still remain after the first phase of the five-year TMEA programme, a Trademark East Africa independent evaluation report released on November 21 says Rwanda has benefited most.
There has been a significant reduction in cost of transporting containers from Mombasa to Kigali from $6,500 in 2011 to about $4,800 in 2016.
For Kenya and Tanzania, much of the TMEA funding is to go into improving efficiency at the ports of Mombasa and Dar es Salaam respectively.