Rwanda will continue to deepen reforms in the logistics sector as it aims to cut costs that undermine the country’s competitiveness, Claver Gatete, the Minister of Infrastructure, emphasized Thursday while opening the Global Logistics Convention2019 in Kigali. This, he said, is central to the Government’s agenda of putting the private sector at the center of transformation, which is contained in the national strategy for transformation. Sector player is optimistic the conference can spur countries to enhance rail and water transport, embrace technology and curb political friction, among other challenges. Gatete noted that while Rwanda has made important gains in the ease of doing business, transport costs—which accounts for about 30 percent to 40 percent of the total cost of goods—undermine the country’s competitiveness and trade. “Indeed, the cost of doing business in East Africa is among the highest in the world and the cost of transport is a key contributor to the cost of doing business in the region and a critical component of competitiveness of regional companies,” he said. The cost is largely driven by inadequate infrastructure and inefficient customs procedures, the minister disclosed. Non-tariff barriers affecting transport in East Africa are estimated at between 3 percent and 16 percent of the cost of the product, according to Overseas Development Institute (ODI). In the recent past, Rwanda has implemented a number of trade facilitation initiatives including, the introduction of the Rwanda Electronic Single Window, which has enabled faster clearance of imports and exports in addition to improving efficiency, transparency,...
Rwanda aims to reduce cost of logistics
Posted on: September 2, 2019
Posted on: September 2, 2019