Government and global logistics firm DHL Express, last week, signed an agreement under which the company will construct a state-of-the-art facility at the Kigali International Airport (KIA). The project, worth Rwf2.5 billion, is scheduled to start next month. The development will significantly boost local and export trade.

For instance, horticulture exporters have for long complained of lack of adequate cold chain facilities at the airport, a situation that limits their capacity and market access, especially into the lucrative European Union and other Western countries’ markets. Lack of adequate cold chain facilities at the airport is one of the reasons the horticulture sector has up to now failed to take off.

Also, marketability of Rwanda’s milk across the region has been hampered by poor cold storage facilities. Therefore, the entry of DHL will significantly enhance the local logistics industry and make it competitive. Besides, with the right logistics infrastructure in place, the growth of the sector will be guaranteed.

Hopefully, more investors will come on board to provide other facilities and services the industry needs to move to the next level.

Already, the government and Pan African Logistics, a continental firm, late last year ,signed a deal to commit about $10 million (Rwf7.4 billion) to develop the local logistics industry. This is besides plans by government and private sector to develop a dry port in Kigali. All these developments fit in government’s vision of strengthening the country’s transport and logistics value chain as per Rwanda Logistics and Distribution Services Strategy.

The strategy seeks to ensure that infrastructure, such as storage facilities for cargo, parking, repair and maintenance facilities, as well as provision of services such as handling of cargo, bonded and non-bonded storage and value added services are in place.