The Government of Rwanda has signed a partnership deal with Alpha Logistics Limited to construct a modern bonded warehouse at Petit Barrière, Rubavu District in the Western Province. 

The $8.6 million (Rwf6.5 billion) facility is part of government’s strategy to boost the country’s logistics industry and promote cross-border trade, according to the Trade and Industry Minister, Francois Kanimba.

Kanimba said the concessional agreement will see Alpha Logistics design, construct, finance, operate and maintain the facility for 20 years.

He said the project will reduce the time and costs associated with cargo movement and handling at the Rwanda–DR Congo border.

"It is also designed to enhance efficiency and quality of Rwanda’s logistics industry,” Kanimba told The New Times on Tuesday during the signing ceremony of the agreement in Kigali.

The Ministry of Trade and Industry has been in the process of implementing the Rwanda Logistics and Distribution Services Strategy which will enable Rwanda to overcome logistical difficulties to improve Rwanda’s trade competitiveness.

Alphonse Semugaza, the managing director of Alpha logistics, said works on the facility would be completed in 12 months. He added that the works for the project, which will seat on 2.03 hectares of land, includes constructing internal roads, equipment maintenance and repair yard, offices, administrative building, security and IT facilities, landscaping, and electricity and lighting, among others.

The firm that is presently mobilising, is expected to start counstruction works in about two months.

When completed, the warehouse will ease and enhance cross–border trade between Rwanda and DRC, experts say.

Rwanda’s exports to the Democratic Republic of Congo represent a big share of 75 per cent of the total informal cross-border exports, followed by exports to Uganda at 17.7 per cent. The country’s exports to Burundi and Tanzania account for only 6.6per cent and 0.05 per cent, respectively, according to recent data from the national statistics body. Other efforts to support logistics industry

Government has of late intensified efforts aimed at improving Rwanda’s logistics industry including signing deals with sector players to ensure that the industry becomes more productive.

Government has also announced the construction of logistics hubs at the Mombasa and Dar es Salaam ports and a dry service port (Kigali Logistics Hub) in Kigali, besides upgrading the air cargo facility at the Kigali International Airport.

business@newtimes.co.rw