CONSTRUCTION of the long-awaited market on the Akanyaru border between Rwanda and Burundi kicked off Friday, raising hopes and expectations among the local business community and leaders that revenues generated from the trade between both countries will be boosted.

On Friday, the Minister for Trade and Industry, Francois Kanimba, launched activities to build the market with the laying of the foundation stone.

The cross-border market, which will be financed through the district’s direct budget, is set to be built in two phases.

The first phase will involve the construction of warehouses, offices and showrooms while the second will see the construction of a general retail market and hospitality facility, according to Nyaruguru mayor Francois Habitegeko.

The total cost of the project is estimated at Rwf1.7 billion.

Mayor Habitegeko told The New Times that the first phase would be complete by next financial year, adding that Akanyaru is strategically located, presenting opportunities to residents to transit a considerable volume of goods.

"We believe this is a wonderful opportunity for our population,” Habitegeko said.

Quoting figures from the National Bank of Rwanda the mayor said goods worth about Rwf1.2 billion were transited through Akanyaru border in 2012.

Rwanda’s border projects

Minister Kanimba said the construction of cross-border markets is part of government strategy to facilitate the trade between Rwanda and neighbouring countries.

He said border markets are expected to contribute greatly to reducing the existing gap between formal and informal trade and boosting revenues.

Informal cross-border trade is valued at about $100 million annually, he said. But with the markets, Kanimba added, the trade could grow to generate more revenues.

"Infrastructure is important in developing cross-border trade,” the minister said.

As part of the cross-border trade strategy, Rwanda is looking at the development of market infrastructures on many of its border areas.

The targeted borders are those with DR Congo, Burundi and Uganda.