Rwanda committed to reduce logistics and transport costs, Minister Gatete

Minister of Infrastructure, Hon. Claver Gatete addressing participants to the Global Logistics Convention 2019 at Kigali Convention Center.

Kigali, 29 August, 2019: Minister of Infrastructure, Hon. Claver Gatete officiated the opening ceremony of the 3rd Global Logistics Convention 2019 taking place in Kigali from 29-30 August, 2019. This global event was organised by the Federation of East African Freight Forwarders Associations (FEAFFA) in partnership with Rwanda Freight Forwarders Association, under the theme “Logistics, The Engine of economic Growth and Development”. 

The Minister of Infrastructure officiated this crucial convention that brought together all transport, freight forwarders and logistics practitioners, to meet and share experiences, explore opportunities available, identify key challenges associated and brainstorm on tangible solutions so as to boost efficiency and improve service delivery in this sector.

Minister Gatete expressed his gratitude and thanked the organizers of this convention. It will not only continue to deepen reforms in the logistics sector, but also cut costs that underpins the country’s competitiveness, hence driving private sector-led economy in the process of the national strategy for economic transformation. Added Minister.

Rwanda has registered tremendous achievements and gains in the ease of doing business, nevertheless, the transport costs of the total cost of goods is still high ranging from 30-40 percent due to inadequate infrastructure as well as incoherent customs procedures. 

Sector player is optimistic the conference can spur countries to enhance rail and water transport, embrace technology and curb political friction, among other challenges. Additionally, Non-Tariff Barriers (NTB’s) affecting transport in East Africa are estimated at between 3 percent and 16 percent of the cost of the product, according to Overseas Development Institute‎ (ODI). Conversely, in collaboration with partner states, Rwanda has implemented a number of trade facilitation initiatives including, the introduction of the Rwanda Electronic Single Window, which has enabled faster clearance of imports and exports in addition to improving efficiency, transparency, and accountability in revenue collection. 

As a solution and due to forged partnerships between member countries, “Minister commended the good will and continued collaboration expressed by EAC Partner States and development partners to ease trade in the region.  As a result of concerted efforts, most of the NTBs have now become history”, he said.

Currently, the transit time from Dar es Salaam and Mombasa ports to Kigali has significantly reduced from 17 days in 2010 to about 3 to 5 days in 2018. Transport costs have also meaningfully reduced by more than 56% since 2010. 

The third Global Logistics Convention 2019 brought together stakeholders in the logistics sector from across the world. They include local and regional freight forwarders, truckers, sector experts among others believe the conference comes in regard to finding solutions to challenges in the transport and logistics sector. Participants are looking to spur regional countries to enhance rail and water transport, embrace technology and curb corruption, among others.