Trade Facilitation

Description

According to the World Bank Logistics Performance Index (LPI) (2012) which measures countries’ trade logistics efficiency, Rwanda is ranked 139th out of 155 countries and all sub-indices are below the regional average of Sub-Saharan Africa. The low quality of trade and transport related infrastructure was found to be the most problematic. As a landlocked country, Rwanda relies on the Northern Logistics Corridor which links to the port of Mombasa in Kenya via Uganda and on the Central Logistics Corridor which links to the port of Dar Es Salaam via Tanzania. Therefore, in Rwanda, it costs as high as USD 3,245 and USD 4,990 to export and import one standard container of goods. These are USD 1,000 to USD 2000 more expansive than the regional averages. Moreover, approximately 70 per cent of the trade costs (USD 2,300 for exports and USD 3,625 for imports) are spent on inland transportation and handling (World Bank 2013a). As the government is aware of the importance of improving trade facilitation to boost Rwanda‘s export competitiveness, several public infrastructure investments and administrative reforms are ongoing. As a result, road transport companies and airlines have increased capacity with road capacity increasing by 32.3 per cent. The government also introduced an electronic single-window system at the border to ease trading across borders as well as enhanced its joint border management procedures with Uganda, Burundi and other neighbour countries (World Bank 2012; World Bank 2013b).

Logistics Performance Index (LPI): Country Comparison
Source: World Bank, Logistics Performance Index (LPI)

Note: World Bank, 2012

Logistics Performance Index – Evolution
Source: World Bank, Logistics Performance Index (LPI)

Note: World Bank, 2012