The country has no operating railways system of transport but there are plans through COMESA to link Kigali to the Tanzanian railway network. The extension of the Tanzanian railway network to Kigali will obviously reduce transport costs. The funding of the project is expected to be under public private partnership (PPP) arrangements.
Advantages the Rail Link
The advantages will include the following;
- Reduction in transport costs of goods to and from Dar es Salaam port.
- It will stimulate economic growth due to the new transport facilities for goods both internally and regionally.
- The project will have positive impacts on labour market due to the employment opportunities during the construction and the operation of the railway line.
- The railway will therefore have an impact on poverty reduction due to the expected economic growth as a result of direct increase of economic output.
- Rwanda will be able to export methane gas from Lake Kivu at competitive prices to the region and international markets.
- The railway will also enhance the agriculture potential for the Eastern province.
- It will create business opportunities for companies providing supporting services to the network.