Logistical challenges that impede local producers from accessing international market could soon come to an end following the entrance of a new e-commerce platform by DP World, into the local market.

The global logistics firm has signed a Memorandum of Understanding (MoU) with the Rwandan Government which will see Rwandan producers use the firm’s newly launched e-commerce platform, Dubuy.com to get their products to the international market.

The e-commerce platform by DP World is leveraging on their global presence and networks to improve Rwanda’s supply chain logistics as well as avail digital tools to help businesses become more efficient and expand their reach to local, regional, and global markets.

With the MoU, Rwanda will become DP World’s initial hub for expanding e-commerce across the East Africa Community and beyond. The MOU was signed by Mahmood Al Bastaki, Chief Executive Officer at Dubai Trade World and Clare Akamanzi, the Chief Executive of Rwanda Development Board (RDB).

The development is expected to bring to an end supply-chain logistics challenges that have held back local producers, (large, medium and small) from accessing the international market especially in markets where there is demand for Rwandan products. The platform will operate as a Business to Business platform meaning exporters will be trading with other business operators and consequently large volumes of orders.

From the development, the biggest winners are producers of exports such as coffee, tea, and horticulture.

In most instances, it’s been a challenge for producers to handle the exports process at the same time maintaining profitability at times due to the unfamiliarity with the export process which has often been termed as complex.

The development will allow exporters to focus on their primary objective producing, and utilize the platform to get their products to the international market.

This comes at a time when e-commerce in Africa has been estimated to grow to $75bn by 2025 and is expected to grow further due to the convenience it guarantees.

Bastaki said that with DP World owning logistics assets across the world in 6 continents, they are in position to leverage them to get Rwandan products to multiple destinations including across the continent.

"We have assets across the world, we are in six continents across the world. We have assets in ports, logistics, supply chain, trucking companies, rail among others. Now we want to leverage these assets. E-commerce is the driver of this process,” he said following the agreement signing.

The firm’s financial base also allows them to invest in the latest technology to drive customer experience, security, marketing and visibility among other aspects.

The platform implementation will be in phases starting with select countries as markets before expansion to the rest of the world.

How the platform will work

DP World has commenced the process to onboard producers and vendors on the platform Dubuy.com.

When the platform is operational in February, a client from any country can log onto the platform, place an order of a product(s) and make payment.

Once the order is confirmed, DP World will confirm the pick-up of the order with the Rwandan vendor, transport the product to the client’s country (by air, road or sea), undertake customs clearances and deliver to the customer’s location.

The firm promised payments on time to the sellers.

"When people buy more, ports and other logistics work more, and the exporters can produce more,” he said.

"We are best suited to do this as we are logistics and supply chain operators in many countries across the world. We will be able to have Rwandan products trade beyond their immediate world,” Bastaki added.

Akamanzi said that the Government is confident that the new partnership will increase Rwanda’s trade and exports in an era increasingly characterized by e-commerce.

"The new partnership to explore international trade via e-commerce will yield benefits to Rwandan firms. We are confident that the platform will increase trade and exports. It is clear that the post-Covid-19 era will be dominated by e-commerce as the world turns to online platforms for their needs. The platform comes at a crucial time,” she said following the agreement signing.

The current partnership with DP World to build and operate the dry port in Kigali she said has facilitated the growth in Rwanda’s exports to UAE to over $324m compared to about $237m two years before

Suhail Al Banna, the Chief Executive and Managing Director for Middle East and Africa at DP World, said that the country’s favourable investment climate, commitment to training and education, and determination create jobs and industrial advancement through technology, makes it an ideal location to launch the global e-commerce platform.

DP World runs the country’s largest inland cargo handling facility which became operational in June 2019 following a concessional agreement that was signed between Rwanda and UAE in 2016.

The facility which cost about $35 million for the first phase is also expected to serve as a gateway to the African market and hub for the intra-Africa trade especially with African Continental Free Trade Area taking effect in January.