Discusses the distribution network within the country from how products enter to final destination, including reliability and condition of distribution mechanisms, major distribution centers, ports, etc.
Last Published: 7/12/2019
Few non-agricultural products are produced in Rwanda, which leaves most distribution and sales channels reliant on import-export partners.  No single company dominates the import-export business.  Instead, numerous trading companies import goods, mostly from the region, as well as Europe, China, India, and the United Arab Emirates.  Construction of the Kigali Free Trade Zone (KFTZ) was completed in 2012.  The KFTZ is designed to serve as a distribution platform to the entire Great Lakes region.  The KFTZ’s location allows for easy access to the main road corridors to Uganda (en route to Kenya’s port of Mombasa) and Tanzania (en route to the port of Dar es Salaam), as well as to Kigali International Airport.  It was also designed for easy access to the planned new international airport in Bugesera, and future potential rail links.  Currently, the nearest railway terminal is a dry port located in Isaka, Tanzania, almost 500 miles from Kigali.  Goods shipped by rail are transferred to trucks in Isaka for the remaining journey to Kigali, adding to the time and cost of goods shipped to and from Rwanda.   

Transport remains one of the biggest economic challenges in Rwanda.  Transportation expenses in Rwanda are nearly twice as high as in most of its EAC neighbor countries (except Burundi and eastern DRC).  Delays in delivery of imports and exports are common and manufacturers in Rwanda in time-sensitive industries often rely on expensive air transport to ensure timely receipt of inputs and timely export of finished goods.  Government-owned airline RwandAir currently subsidizes cargo export rates in an effort to support the growth of export industries.
 

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