The construction of the Kigali Wholesale Market for fresh produce has yet again been put on hold as the government continues to search for sources of financing.
The project to be constructed under two phases will cost Rwf29.5 billion.
However, under the proposed budget for the fiscal year 2021/22 has not been catered for, meaning its implementation will be delayed further.
The final budget is yet to be presented to parliament.
First mooted in 2010, the first phase of the market — which is to be constructed at the Kigali Special Economic Zone in Gasabo District — was to be complete and operational by 2018.
However, the project has faced a series of postponements owing to a combination of financial constraints and delays in fine-tuning the project designs.
And during last month’s budget hearing, officials from the ministry of agriculture told Parliament the lack of financial commitment from the government could make it impossible to secure funding from development partners.
Gérardine Mukeshimana, Minister for Agriculture and Animal Resources, some development partners including the European Union and the Netherlands Enterprise Agency (RVO) were willing to take part in the financing of the project.
"As the Government, we committed to contribute 50 per cent of the funding so that we supplement their grants.”
Expected impact of the project
The market is expected to reduce post-harvest losses of fresh produces and boot the country’s export earnings from horticulture.
Official estimates show that every year the country losses Rwf36 billion through poor post-harvesting handling of agriculture produce.
It was expected to improve logistics planning, quality control and storage of fruits and vegetables.
The project seeks to provide new services like cleaning, grading, possibly drying, and cold storage that increases product life and reduce the loss of unsold products.
With the capacity to handle 180,000 tonnes of fruits and vegetables every year, the market was expected to serve some 100 wholesalers.
Once complete, the project could potentially employee up to 1,000 people during the construction phase and 1,500 in the second phase, according to National Agricultural Export Development Board (NAEB).
NAEB says it will facilitate private sector investments in value addition in the agriculture sector.
In addition to improving linkages and logistics of produce coming from rural areas, aggregation points and markets, officials said that the market will provide a modern and clean environment where food service business, food manufacturers, restaurants, hotels and regional exporters can find high-quality fresh produce.
It will also have small retail to supply fresh produce to families looking to buy high-quality products in a clean, well-lit and safe environment.
Regarding the significance of the Market, Mukeshimana observed that it would act as a catalyst that will bring more efficiency and effectiveness to Rwanda’s fresh produce sector both for local supplies and for regional exports.
Robert Rukundo, Chairperson of Horticulture Exporters Association of Rwanda, said currently there are different facilities for handling and packing fruit and vegetables prior to their exportation.
This, he added, was not easy for activity monitoring since these facilities are scattered.
In addition, the cost is high. An exporter pays between Rwf60 and Rwf100 per kilogramme every day.
"This makes exporters work under pressure as they seek to take their fresh produce out of such facilities fast to hedge against the high storage charges.”
John Sindikubwabo, a tomato farmer in Nyagatare District told The New Times that the Market would come relief for dealers in perishable horticulture produce.
"Buyers take small quantities of tomatoes because they were afraid that the tomatoes will rot. So, this Market can help address such an issue by extending the product shelf life,” he said.
The demand for fresh fruit and vegetables in Kigali is projected to rise to 209,637 tonnes by 2025, up from 128,669 tonnes in 2015.