The modern market facilities will not only bring order to one of Rwanda’s largest cross border markets, but will also facilitate reduction in time taken for informal trade across the border
- UKAID through TradeMark East Africa (TMEA) is funding Rusizi Cross Border market facilities with grant of USD 2.2 Million.
- The two story modern market facilities will facilitate a 25% increase in volume of exports, amounting approximately USD 4.62m exports, within first year of operation and reduce informal traders’ business costs while increasing their incomes.
- Facilities will be ready for use within 12 months.
Rusizi, Rwanda, February 21st 2017: Construction of new and modern cross border market facilities worth USD2.2 million has commenced in Rusizi at the border of Rwanda and Democratic Republic of Congo (DRC), following today’s ground breaking ceremony. Hon. Francois Kanimba, the Minister for Trade, Industry and East African Affairs (MINEACOM) presided over the event.
The development will benefit thousands of Rwandans who trade across the border with DRC informally, who already make a significant contribution to Rwanda’s economy with an estimated trade value of US$ 85 million in 2015. More than one third of the total informal cross border trade in Rwanda goes through Rusizi. Trade through Rusizi grew by 48% between 2013 and 2014.This investment will therefore bring further economic gains for both traders and the Government of Rwanda.
Addressing the crowd at the border, Hon. Kanimba noted: “Cross border trade with DRC amounts to $100 million annually with approximately $30 million going through Rusizi. Cross border trade plays an important role in poverty reduction as it provides trading opportunities for many of poorest people of our society. MINEACOM remains focused in utilizing every opportunity to keep supporting informal cross border traders, in particular women, through creating conducive working environment such as Cross Border Markets and continue to build their capacity to trade.”
The double story cross border market complex will comprise of stalls and lock ups which are divided according to the different merchandise, in addition to storage facilities, wash rooms, cold rooms, and a crèche. Access roads, paved pedestrian areas, parking yards for vehicles and bicycles and paving will also be constructed to enhance access to the cross border market. The United Kingdom, through its development agency Department
for International Development (DFID) in Rwanda, has funded the project as part of its wider support to trade facilitation and economic growth in Rwanda.
DFID Rwanda Head of Office, Sally Waples, said: “The UK is proud to support the transformation of Rwanda’s economy to attract investment, create jobs, and improve ordinary Rwandans’ lives. We are truly excited about the Rusizi Cross Border Market and its role in facilitating trade, ultimately helping to transition Rwanda away from aid and bring people out of poverty.”
The storage and warehousing facilities will ensure that informal traders can purchase and store larger volumes of goods, lowering transportation costs by reducing the number of trips traders need to make to the market. It is estimated that within its first year of operations, the new market will generate an additional 25% of informal exports, equivalent to USD 4.62 million. The market will also act as a catalyst for information sharing between producers and buyers in addition to improving security for women traders who make up between 75 and 80% of the informal cross border traders in Rusizi.
Giving remarks at the event, TradeMark East Africa (TMEA) Country Director Patience Mutesi said, “this facility is critical to economic development of thousands of informal cross border traders, their families and communities. This is because over one third of Rwanda’s informal cross border trade is conducted here and creating better market conditions will increase incomes, directly touching the wellbeing of thousands of families.”
TradeMark East Africa (TMEA) is an aid-for-trade organisation that was established with the aim of growing prosperity in East Africa through increased trade. TradeMark East Africa (TMEA) operates on a not-for-profit basis and is funded by the development agencies of the following countries: Belgium, Canada, Denmark, Finland, the Netherlands, Sweden, UK, and USA. TradeMark East Africa (TMEA) works closely with East African Community (EAC) institutions, national governments, the private sector and civil society organisations.