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Transport Sector Policy REPUBLIC OF RWANDA MINISTRY OF INFRASTRUCTURE TRANSPORT SECTOR POLICY December 2008 1 TRANSPORT SECTOR POLICY I. INTRODUCTION 1. The transport sector is a strategic sector for Rwanda, and the situation of being landlocked has a negative impact on economic growth and development of the country. The exceptionally high cost of transport at national as well as international levels, as well as insufficient affordable and accessible modes of transport for people in both urban and rural areas, constitute a major constraint which must be taken into account with the sector policy to achieve the short medium and long-term development goals that Rwanda has mandated. 2. The present sectoral policy defines the vision of the Government for the sector as well as its strategic orientations, which will guide its actions during the next five years. These are summarized in the Transport Sector Policy Matrix (Appendix 1). The implementation of the sector policy is ensured through medium term programmes such as the Medium Term Expenditure Framework (MTEF) for the period 2009-2012 as annexed in Appendix 2. 3. The transport sector policy is inspired by the planning tools available in Rwanda, such as the Vision 2020, the Economic Development and Poverty Reduction Strategy (EDPRS), the National Investment Strategy and the Medium Term Expenditure Framework. It takes into account other tools of reference such as the Millennium Development Objectives and the action plan of the Sub-Saharan Africa Transport Policy (SSATP). It also takes into account cross-cutting issues such as HIV/AIDS and environmental protection. I.1. Definition of the Transport Sector 4. Transport infrastructure in Rwanda is comprised of the following: (i) Road transport, which until now is the main form of passenger and goods transportation, with a network of about 14,000 km corresponding to a road density of 0.53 km/km², (ii) Air transport with, two international airports and five aerodromes spread across the country, and (iii) lake transport, which is limited mainly to Lake Kivu. Rwanda does not have a rail transportation system, but the rail road systems of the neighbouring countries (Tanzania, Uganda and Kenya) which are used as transit routes, contribute in a small way for goods originating or destined for Rwanda in a multi-modal railway- road combination. The planned railway connecting Rwanda to the Tanzanian port of Dar es Salaam will provide a direct link to international transit routes. 5. Over and above physical infrastructure, the sector is also comprised of transport services, which are provided by the public and private sector alike and includes bus, taxi and airline services. 2 6. The transport sector contributes considerably towards poverty reduction and economic growth, and serves as support to other economic sectors. It plays a fundamental role in the economy of Rwanda as it contributes about 7% to the GDP, and represents about 15% of total service delivery. Most of the transport infrastructure in the National Economy has been continuously growing since 1995, and is expected to grow further with the putting in place of the proposed policy. 7. There has been a steady increase in the allocation of resources to the transport sector both from internal and external sources of finance, which is a clear demonstration of the importance that the Government of Rwanda places in the development of the sector. I.2. Context I.2.1. National Context 8. Rwanda is a landlocked country in the heart of Africa and far from the maritime ports on the Indian Ocean, with the distance to the nearest port of Dar es Salaam being around 1.400km. This poses a major limitation in her national development efforts. 9. The current state of transport infrastructure in Rwanda may be attributed to the war and the genocide of 1994, which destroyed the economic infrastructure of the country considerably. 10. This situation was aggravated by other institutional problems, such as the absence of a clear vision for the sector, institutional weaknesses, as well as the absence of a strategy for maintenance of transport infrastructure. 11. With the end of the war, the Rwandan Government, with the support from development partners, has committed itself to the reconstruction of the country. Specific importance has been attached to the rehabilitation of transport infrastructure and road infrastructure in particular, which are vital for a country whose internal and external economic dealings are essentially accomplished over the road transportation system. 12. After the emergency phase that immediately followed the war and genocide, the Government undertook a Development phase, which undertook the reconstruction of the main axes roads of national and international importance, the urban road network, as well as Kanombe International airport. 13. A multi-annual programme with considerable capital investment for the transport sector and with a guarantee of the necessary resources has been established with the participation of partners of the sector. This investment framework is based on the priorities of the Economic Development and Poverty Reduction Strategy and the Vision 2020. 3 I.2.2. Socio-economic Context 14. Socio-economic context of transport in Rwanda is linked to stimulating economic growth by increasing internal production and facilitating access to domestic and international markets on one hand, while ensuring favourable conditions for provision and distribution of imported products within the country on the other. In addition, stimulating economic growth is linked to improving mobility for the population via passenger transport throughout Rwanda. 15. The planning of infrastructure and transport services will be made by taking into account the socio-economic activities, and end-products to be transported between producers and consumers and other areas of growth. 16. With respect to the infrastructure to be built, or the transportation systems to be implemented, it is necessary to identify the principal social and economic activities that define transport services. 17. Socio-economic studies will enable the identification of categorization of the principal products of the country, such as their geographical distribution within the territory, and in particular the channels of growth and products of export (tea, coffee, potatoes, flowers, fruit, industries, mining resources and tourist areas, animal husbandry, etc.). The studies must also identify the means to improve passenger transport in urban and rural areas utilising all available modes of transport, including: road, rail, air and water. 18. Efforts will be made to improve the state of infrastructure and the quality of transport services in order to reduce the constraints that limit the population in mobility and with accessing essential services and markets for their products. Particular attention will be given to improving trunk and rural roads so that they are motorable throughout the year. Efforts will also be made to increasing urban public transport services to reduce congestion and pollution and enable the expansion of rural services. 19. In parallel, the economic development of Rwanda suffers from the lack of effectiveness of international transport services, which increases cost of exports of the country and reduce their competitiveness in the world market. The Rwandan consumer feels the impact of the high cost of international transport on imported products, which contribute significantly to the increased cost of living. 20. Transportation costs are estimated to contribute to more than 40% of the total value of imported or exported goods respectively as compared to between 6.5 and 11% in developed countries. 21. The present transport policy will be oriented towards making it possible for the sector to contribute appreciably towards the growth and economic development of Rwanda, with direct consequences leading to improvement of the standard of living of the population and poverty reduction. 4 I.2.3. Socio-political Context 22. The socio-political context of Rwanda is characterized by the political and administrative reforms that took place during the past few years at the level of administrative re-organization of the territory, central and decentralized public administration, and economic management systems for the country, driven by the need to find the best conditions for good political and economic governance. 23. The socio-political orientation of transport refers to the objectives of economic development aimed at poverty reduction as defined by the EDPRS. Sector planning at central and decentralized level must be aimed towards developing infrastructure and transport services likely to support the development of other socio-economic sectors, and to stimulate the expected growth during the medium and long term as projected in the Vision 2020. 24. The decentralization policy defines responsibilities for entities in the management and the maintenance of the community infrastructure, particularly in sections of the road network for which they are responsible. The priority will be given to the strengthening of technical and financial capabilities of the districts so that they are able to assume this role effectively. The financial transfers from a central to decentralized level will have to be carried out gradually as management capacity is improved. 25. The new policy is based on a participatory approach of the communities towards the maintenance of road infrastructure in rural and urban areas; the execution of routine maintenance works on the trunk roads will be carried out by the associations formed by population bordering these roads. Routine maintenance requires mainly the use of the small hand tools that are in everyday use. 26. This approach will support job creation and generate supplementary income for the local communities and enhance their disposable income levels while ensuring the security of the road infrastructure due to the economic interest which they represent in terms of employment and related benefits. 27. The present policy shall enable the development of regional integration models aimed at diversifying the modes of transportation for both good and passengers and the conveyance of supplies in and out of the country.
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