A rail transportation system is crucial to boosting trade volumes between Rwanda and Uganda as both countries build stronger partnerships, Stephen Ruzibiza, the CEO of Private Sector Federation (PSF), said on Friday.

Ruzibiza was addressing participants at the Rwanda-Uganda business forum in Kigali, on the sidelines of the eleventh Rwanda-Uganda Joint Permanent Commission (JPC).

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Also present at the business forum were senior Rwandan government officials as well as the Ugandan delegation led by Minister of Foreign Affairs, Gen. Odongo Jeje Abubakhar. For Ruzibiza, most trade barriers between Rwanda and Uganda have been eliminated allowing for movement of people, capital as well as labor.

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"But railway transport is key. I have not heard participants speak about it but it is very key looking at the fact that we already have road transport, and air transport. There is no reason for ignoring railway transport,” Ruzibiza said.

For instance, Ruzibiza said, it takes only less than 2 hours 40 minutes to cover roughly over 400km from Paris to London by train, while it takes more than 8 hours to cover roughly over 500km from Kigali to Kampala by bus.

"Even when you board a plane, it will take one hour but when check-in hours and time spent waiting for luggage is factored in, it will take slightly longer than 4 hours.”

This, he said, can be stemmed down by a high-speed train which will take less than three hours.

"After listening to political promises and business opportunities that were presented during the forum, I would like to say that PSF is committed. Please consider this and let us see the feasibility,” Ruzibiza added.

Equally concerning is the high transport prices in east Africa, which the World Bank has highlighted as among the highest in the world. Ruzibiza shared similar sentiments with Odongo who urged the business communities present at the forum to take full advantage of revived bilateral relations between both countries and exploit all economic opportunities available.

"Our two countries place a lot of emphasis on the private sector as an engine of growth and development. We are committed to creating a conducive environment of doing business in the region.”

Odongo said that the JPC took note of the challenges affecting bilateral trade such as non-tariff barriers, in form of fees, levies, charges and bureaucracy, which in the end increase cost of doing business.

He said: "The potential for business for doing business is great but the current volumes are discouraging. The significant drop calls for concerted efforts by both governments and the business community to revive and reverse this trend.”

Why now?

For Clare Akamanzi, the Chief Executive at Rwanda Development Board (RDB), the stakes are high for Rwanda’s private sector to use the forum as an opportunity to connect, explore and build strong partnerships that will boost trade and investments between both countries.

She said: "There has never been a better time for us to come together to lay out strategies and partnerships that could transform our two countries. Rwanda and Uganda share a rich history, especially in terms of trade and investment.

"Over the past two decades, our economies have grown to be dependent on each other and our people have always collaborated to better our business and investment ties.”

But why now? First, according to Akamanzi, with a 10-year average growth rate of 8 percent pre-pandemic, Rwanda is one of the fastest growing economies in Africa. The Rwandan economy has recovered from the pandemic, growing by 10.9 percent in 2021 and 8.2 percent last year.

Secondly, she said, it is easy to do business in Rwanda, with the World Bank ranking Rwanda the second easiest place to do business in Africa.

Rwanda, she added, has automated and streamlined its business processes. Citizens and investors get all their civil documentation online such as birth certificates, driver’s license, passports, IDs, land titles, among others, through our citizen’s portal called Irembo.

"You can also register your business in just six hours, online, free of charge, from anywhere in the world. Investors can also get all licenses and permits required for business setup or import and export operations online and at the RDB One Stop Centre.”

The Global Corruption Perception Index ranks Rwanda third least corrupt country in Africa after Botswana and Mauritius.

"So in a nutshell: Rwanda is fast growing, easy to do business, safe and welcoming.”

Data from RDB indicates that there are over 23 registered investment projects from Uganda worth over $252 million, which are expected to create over 1,800 jobs.