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UNIT 17: TRANSPORT,
COMMUNICATION AND TRADE
IN RWANDA
MAJOR TYPES OF TRANSPORT
Transport is the physical movement of people, animals, goods and services
from one place to another.
There are three major types of transport in Rwanda. They include the
following.
(a) Air transport
(b) Water transport
(c) Land transport
Land transport in Rwanda is in many forms:
1. Porter transport
2. Pipeline transport
3. Road transport
4. Cable transport
• However, the most commonly used form of land transport in the country is
road transport.
1. ROAD TRANSPORT
This is the movement of people and goods by road by the use of
automobiles such as motor cycles, vehicles, bicycles.
There are many types of roads:
• Tarmac or paved roads: the main roads
• Marram roads: the secondary roads covered by laterite, sand or soil.
• Feeder roads: Smaller than Marram roads, made by beaten soil and
sometimes mixed with sand.
• Footpaths
The country has good tarmac roads that have been built in various parts of
the country. They all meet at Kigali. This has created a road network that
beats the challenges of the landlocked nature of the country. The roads
connect Rwanda to other countries in the region. Roads in Rwanda cover
a total area that is close to 14,000 km.
The government of Rwanda
enacted a law that governs
the roads in the country;
this is law is No. 55/2011 of
14/12/2011. According to
the above law, roads are
classified into three
categories. They are:
1. National roads: roads
include roads that link
up Rwanda to her
neighbors. They are
also known as
international roads
2. Districts and City of
Kigali roads: connect
districts and upcountry
areas to the city of
Kigali
3. Specific roads that
connect other areas of
concern such as
RWANDAN ROAD NETWORK
Rwanda is well connected internally and externally by a wide network of
roads. The main roads in Rwanda include the following.
• Kigali – Muhanga – Huye – Akanyaru – Burundi border covering about
190 km.
• Kigali – Ngoma – Rusumo – Tanzania border stretching to about 167
km.
• Kigali – Kayonza – Kagitumba – Uganda border covering about 191
km.
• Kigali – Gicumbi – Gatuna – Uganda border covering about 80 km.
• Kigali – Musanze – Rubavu – Goma/ Democratic Republic of Congo
156 km.
• Kigali – Huye - Rusizi – Bukavu covering about 284 km.
• Kigali – Huye – Rusizi – Bugarama Burundi border covering 322 km.
ADVANTAGES OF ROAD
TRANSPORT
• Flexible service: Road transport is less rigid. Passengers can stop anywhere they want.
• Less expensive: Road transport is the cheapest form of transport for short distances.
• Time saving: Road transport saves time especially when short distances are involved.
• Door to door service: Road transport can offer door to door services unlike other types of
transport.
• Easy to establish: Road transport is easy to establish since the construction and
maintenance of roads is manageable.
• Service in rural areas: Road transport is the most suitable for moving goods and people in
the rural areas.
• Minimum risk of damage in transit: Road transport is suitable for transportation of fragile
and delicate goods such as glass and ceramic goods.
• Less packaging expenses: This form of transport does not require serious packaging as it
is with other forms of transportation.
• It is easier to access vehicles: It is easier for people to own and purchase vehicles,
bicycles and motor cycles than airplanes, motor boats and ships.
DISADVANTAGES OF ROAD TRANSPORT
• Accidents and breakdowns: The chances of the occurrence of accidents and breakdowns are more compared to
other types of transport.
• Unsuitable for long distances: This mode of transport is unsuitable and costly for transporting goods over long
distances.
• Slow: The speed of motor transport is slow compared to air transport.
• Lack of organization: Road transport is less organized when compared to the other forms of transport
• Rising cost of petrol and diesel: Due to high prices of petroleum products and diesel, the operational costs of
road transport are always rising.
• Traffic controls: Traffic controls on the highways may unnecessarily consume one’s time.
• Heavy taxes on transport: The agencies involved in transport are heavily taxed by the government. This affects
their pricing.
• Traffic jam: Road transport sometimes becomes costly in terms of time and fuel especially when motorists are
stuck in traffic for long hours
• Uneconomical return journeys: Due to lack of fixed operation times, vehicles make return journeys when they
are empty.
• It is affected by weather: Road transport is affected by weather conditions especially during the rainy season.
• Unsuitable for perishable goods: Perishable goods such as vegetables, fruits and milk products that are to be
transported for long distances may go bad before reaching their final destination.
• Vulnerable to robbery: Vehicles on the roads can be attacked by highway robbers.
2. AIR TRANSPORT
Air transport is a form of transport that
involves moving people, goods, services
and people from one place to another by air.
Mode of transportation includes:
• Aeroplanes,
• Hot air balloons and
• Helicopters
Air transport is divided into
• Domestic and
• International air transport.
INTERNATIONAL AIRPORTS
There are two main
international airports in
Rwanda. They are:
• Kigali International
Airport: The airport is
located in the suburb of
Kanombe at the eastern
edge of Kigali
• Kamembe International
Airport: It is located in the
town of Cyangugu which
serves south western
Rwanda and the town of
Bukavu in the Democratic
Republic of Congo
Bugesera International Airport will be located in southeastern
Rwanda, in Bugesera District near the town of Nyamata. Its
location is approximately 24 kilometers (15 mi) and it is expected
to start working in 2022
DOMESTIC AIRPORTS IN RWANDA
• Butare Airport: Located in the city of Butare in Huye District,
Southern Province. Its location lies approximately 80 km (50 mi)
• Gisenyi Airport: Located in Rwanda’s Western Province in Rubavu
District in the town of Gisenyi at the international border with D.R.
Congo. Its location lies approximately 94 km (58 mi)
• Nemba Airport: Located in Rwanda’s Eastern Province in Bugesera
District in the town of Nemba, at the International border
with Republic of Burundi. Its location lies approximately 50 km
(31 mi)
• Ruhengeri Airport: Located in Rwanda’s Northern Province in
Musanze District in the town of Ruhengeri. Its location lies
approximately 70 km (43 mi)
ADVANTAGES OF AIR
TRANSPORT
• It is fast: It is the fastest mode of transport.
• It is convenient: It is a convenient means of transport used to send
costly, light and perishable goods.
• It is not affected by relief features: The presence of mountains,
oceans and rivers create no obstruction to air transport.
• It is useful for agriculture: Aeroplanes are used to spray pesticides on
farms.
• Strategic importance: This form of transport can be used in risky areas
such as the war torn and troubled places to offer humanitarian services.
• It is secure: It is a relatively secure type of transport to use. There is
security for the passengers and goods that are being transported.
• It operates on fixed time schedules and routes. This enables users to
plan in advance
DISADVANTAGES OF AIR
TRANSPORT
• Risky: The occurrence of air accidents leads to great losses of lives and
goods.
• Costly: Air transport is regarded as the most expensive form of transport.
The cost of purchasing and maintaining aircrafts and airports is very high.
This leads to high freight charges and air fare.
• Small carrying capacity: The aircrafts have small carrying capacities.
They are therefore not suitable for carrying bulky goods.
• Affected by weather changes: This form of transport is affected by
changes in the weather. Very heavy rainfall, fog or snow may lead to
cancellation of flights.
• Highly trained personnel: Air transport requires great skill from highly
trained and qualified personnel. These skilled personnel are few in
developing countries such as Rwanda.
• Air transport is not flexible since aircrafts only land in areas with airports.
4. WATER TRANSPORT
Water transport is the movement of goods
and people over water bodies such as rivers,
lakes, seas and oceans. Water vessels such
as rafts, canoes, dhows, boats, ships and
ferries are used in water transport.
Water transport is divided into:
• Inland waterways involve transport on
water bodies such as rivers, canals and
lakes
• Sea waterways involve transport on seas
and oceans.
• Water transport is present on Lakes Kivu,
Muhazi, Burera, Rweru and Ihema. It is
also present in River Akagera on a small
scale.
There are limited modern boat services
between the major ports of Cyangugu,
Kibuye and Gisenyi.
ADVANTAGES OF WATER
TRANSPORT
• Less maintenance cost: Water bodies occur naturally and do
not require maintenance.
• Cheap: This type of transport is relatively cheap as compared
to rail, air and road transport.
• Suitable for bulky goods: Heavy and bulky goods can be
easily transported at little cost.
• Important for foreign trade: Water transport plays an
important role in foreign trade.
• Suitable for fragile goods: Water transport is the most reliable
type of transport that is fit for transporting fragile goods.
• Less congestion: Water transport experiences less traffic
congestion compared to road transport.
DISADVANTAGES OF WATER TRANSPORT
• Slow: It is a slow means of transport compared to road and air transport.
• It is risky: Water transport is riskier compared to other means of transport.
• Limited area of operation: This type of transport can only be used in areas with
lakes, canals and rivers.
• It is seasonal: Some seasonal rivers and canals cannot be used for transport
throughout the year.
• Unreliable: The Inland water transport is unreliable. Sometimes, rivers change their
courses disrupting the normal routes.
• Affected by strong waves: The water transport depends on the state of the water
bodies. When there are strong and destructive waves, the vessels are destroyed and
accidents are bound to happen.
• The presence of obstacles such as rocky islands and floating vegetation hinder
the movement of vessels.
• The construction of ports is very costly.
What is that?
This involves
movement of
people and goods
from one place to
another using trains
that run on rail lines.
There are several
planned railway
lines in Rwanda,
including a line to
Tanzania.
5. RAILWAY TRANSPORT
Shanghai Maglev - 460 kph/286 mph
(China)
ADVANTAGES OF RAILWAY TRANSPORT
• It is convenient in transporting bulky goods over long distances.
• Railway transport is dependable since it is less affected by poor
weather.
• It is a cheaper means of transport compared to road or air transport.
• Railways have a large carrying capacity compared to roads.
• The railway lines occupy less space and thus less land.
• Railway transport is safe since the chances of accidents or
breakdowns are minimal.
• Trains operate on fixed time schedules and thus are less affected by
traffic congestion.
DISADVANTAGES OF RAILWAY
TRANSPORT
• Railway transport is inflexible. It operates on fixed time
schedules and routes.
• Construction and maintenance of railway lines is expensive.
• Railway transport is unsuitable and uneconomical over short
distances.
• Trains use varied rail gauges. This makes interconnection
between countries impossible.
• Increased costs of construction.
• Only one train uses a single railway line at a time. This causes
delays in movement of goods and people.
320 kph/198.5 mph
6. PIPELINE TRANSPORT
This refers to the movement
of goods mainly liquids
through pipes from one
place to another. Goods
transported using pipeline
transport include water, gas
and oil.
In Rwanda pipeline is used
to deliver gas from Rubona
on the share of Lake Kivu to
Bralirwa factory at Gisenyi
and water for people.
ADVANTAGES OF PIPELINE TRANSPORT
• It is cheaper to operate and maintain pipelines compared to other means
of transport.
• Pipelines can be laid on mountainous and rough terrains, swamps, water
and dry land where roads and railways cannot be constructed.
• Pipelines allow for continuous supply of the commodity that is being
transported.
• Pipelines are not affected by bad weather such as fog and heavy rainfall
unlike other means of transport.
• Pipelines are convenient in transporting highly inflammable commodities
such as petroleum.
• Pipeline transport does not pollute the environment unlike other means
such as road transport. It is only in cases of leakages that pollution may
occur.
DISADVANTAGES OF PIPELINE TRANSPORT
• High initial cost: The initial cost of building a pipeline can be very high. This is a
major barrier to entry for new pipeline projects.
• Environmental impact: Pipelines can have a negative impact on the environment if
they are not properly constructed and maintained. This can include leaks of oil or
other hazardous materials, which can pollute the environment and harm wildlife.
• Security risks: Pipelines are a potential target for terrorist attacks. This is a major
concern for governments and businesses that rely on pipelines to transport goods.
• Limited flexibility: Pipelines are not as flexible as other modes of transportation,
such as trucks and trains. Once a pipeline is built, it is difficult to change the route or
the type of product being transported.
• Single-use: Pipelines are typically designed to transport a single type of product.
This means that they cannot be used to transport multiple types of products, which
can limit their usefulness.
• Vulnerabilities to damage: Pipelines can be damaged by natural disasters like
earthquakes or flooding, as well as human activities like construction, which can
lead to leaks or spills.
HUMAN & ANIMAL
TRANSPORT
Human and animal transport has been a
part of human history for centuries. The
first humans to walk the Earth had to
travel long distances to find food and
shelter.
Animals have also been used for
transport for centuries. Horses, camels,
and elephants were all used to transport
people and goods long distances. Today,
animals are still used for transport in
some parts of the world. For example,
camels are still used to transport goods in
the Middle East.
Human and animal portage in Rwanda is
a traditional form of transportation that
has been used for centuries. Porters, who
are typically men, carry goods on their
backs or on the backs of animals, such
as donkeys or mules. Porterage is a
Camel Train in Sahara desert
ADVANTAGES
• Efficient: Animals can travel long distances quickly and easily.
• Cost-effective: Animal transport is relatively inexpensive, especially
when compared to other modes of transportation, such as air or sea.
• Flexible: Animals can be transported to a variety of destinations,
including remote areas.
• Reliable: Animal transport is a reliable way to get goods to their
destination.
• Environmentally friendly: Animal transport produces fewer emissions
than other modes of transportation, such as trucks and trains.
• Safe: Animal transport is a relatively safe way to transport goods.
• Stimulates local economies: Animal transport can stimulate local
economies by providing jobs and income for people in the areas where
animals are transported.
DISADVANTAGES
• Animal welfare: Animal transport can be stressful for animals, and there
is always the risk of injury or death.
• Pollution: Animal transport can pollute the environment with manure,
urine, and other waste.
• Accidents: Animal transport can be dangerous, and there is always the
risk of accidents that can injure or kill people or animals.
• Cost: The cost of animal transport can be high, especially when
transporting animals over long distances.
• Time: Animal transport can take a long time, especially when
transporting animals over long distances.
• Weather: Animal transport can be affected by weather conditions, such
as storms or snow.
• Security: Animal transport can be a target for theft or vandalism.
FACTORS INFLUENCING DEVELOPMENT OF TRANSPORT IN
RWANDA
• Relief: Areas with gentle slopes in the Central and Eastern parts of the country have a
network of well developed roads compared to the North western parts with steep and rugged
slopes
• Vegetation: Areas with little or no vegetation especially in the Eastern region of Rwanda are
good for construction of transport facilities.
• Presence of water bodies: Water bodies in Rwanda consist of lakes and rivers. These water
bodies have promoted water transport.
• Fertile soils: In Rwanda, areas with fertile soils that support agricultural activities are
connected with a network of roads. This is due to the need of transporting the agricultural
produce
• Adequate capital: The Rwandan government in partnership with developed countries and
other international agencies is able to raise enough capital for the construction of transport
facilities
• Business opportunities: There are different businesses that have come up in Rwanda in
the recent past. These businesses attract clients and more investors and build different
transport systems
• Industrialization: The construction of roads and other forms of transport is attributed to the
presence of industries.
• Political factors: Good governance in the country has led to proper implementation of
PROBLEMS AFFECTING TRANSPORT
Problem Description Impact
Poor road
infrastructur
e
Rwanda's road network is in poor condition, with many roads being
unpaved and in need of repair. This makes it difficult and dangerous to
travel by road, and can also lead to delays in the delivery of goods
and services.
Increased travel
time and cost,
decreased
safety
Lack of
public
transportatio
n
Rwanda has a limited public transportation system, which makes it
difficult for people to get around without a car. This is especially a
problem in rural areas, where there is often no public transportation at
all.
Reduced
mobility,
increased traffic
congestion
High cost of
transportatio
n
The cost of transportation in Rwanda is high, which can make it
difficult for people to afford to travel. This is especially a problem for
people who live in rural areas, where they may need to travel long
distances to get to work or school.
Reduced access
to opportunities,
increased
poverty
Inadequate
air
transportatio
Rwanda has only one international airport, which is located in the
capital city of Kigali. This means that people who live in other parts of
the country have to travel long distances to get to the airport, which
Reduced
connectivity,
increased travel
Poor traffic
management
Traffic congestion is a major problem in Rwanda, especially in
the capital city of Kigali. This can lead to delays and accidents,
and can also make it difficult for people to get around.
Reduced productivity,
increased pollution
Unskilled drivers Many drivers in Rwanda are unskilled, which can lead to
accidents and traffic congestion.
Increased risk of accidents,
decreased safety
Poor vehicle
maintenance
Many vehicles in Rwanda are poorly maintained, which can lead
to breakdowns and accidents.
Increased risk of accidents,
decreased safety
Lack of
enforcement of
traffic laws
Traffic laws are often not enforced in Rwanda, which can lead to
unsafe driving conditions.
Increased risk of accidents,
decreased safety
Corruption Corruption is a major problem in Rwanda, and this can also
affect the transport sector. For example, corrupt officials may
demand bribes from drivers or businesses, or they may fail to
enforce traffic laws.
Increased cost of
transportation, decreased
safety
Natural disasters Rwanda is prone to natural disasters such as floods and
landslides, which can damage roads and other infrastructure.
Reduced connectivity,
increased travel time and cost
Climate change Climate change is expected to have a negative impact on Increased risk of natural
POSSIBLE SOLUTIONS
• Invest in road infrastructure: Repair and upgrade existing roads, build new roads in rural areas, promote the
use of alternative modes of transportation.
• Develop a more comprehensive public transportation system: Make it easier for people to get around
without a car, provide subsidies for public transportation, work with the private sector to develop new public
transportation options.
• Provide subsidies for transportation: Make transportation more affordable for people to use, provide
subsidies for public transportation or for private transportation.
• Build new airports or expand existing airports: Make it easier for people to travel to and from Rwanda, work
with the private sector to develop new air transportation options.
• Improve traffic management: Build new roads, improve public transportation, enforce traffic laws more
strictly, work with the private sector to develop new traffic management technologies.
• Provide driver training programs: Improve driver skills and make the roads safer, provide online driver
education courses or in-person driver training programs.
• Provide vehicle maintenance programs: Improve vehicle maintenance and make the roads safer, provide
mobile car repair services or discounts on vehicle maintenance services.
• Increase enforcement of traffic laws: Make the roads safer, increase the number of traffic police or use new
technologies to enforce traffic laws.
• Strengthen the rule of law and increase transparency in the transport sector: Reduce corruption, strengthen
the judiciary or increase the transparency of government procurement processes.
• Develop disaster preparedness plans for the transport sector: Mitigate the impact of natural disasters,
develop early warning systems or disaster recovery plans.
• Develop climate change adaptation plans for the transport sector: Reduce the impact of climate change,
develop flood-resistant roads or drought-resistant crops.
IMPORTANCE OF TRANSPORT ON SUSTAINABLE DEVELOPMENT OF
RWANDA
• Improve access to markets: A good transport system can help farmers to get their produce to market,
which can improve their incomes. It can also help to attract businesses to Rwanda, which can create
jobs and boost the economy.
• Improve access to education: A good transport system can make it easier for children to get to school,
which can help to improve literacy rates and reduce poverty.
• Improve access to healthcare: A good transport system can make it easier for people to get to hospitals
and clinics, which can help to improve health outcomes and reduce mortality rates.
• Reducing poverty and inequality: A good transport system can help to reduce poverty and inequality by
making it easier for people to move around and access opportunities.
• Promoting tourism: A good transport system can make it easier for tourists to visit Rwanda, which can
boost the economy and create jobs.
• Enhancing trade: A good transport system can make it easier for Rwanda to trade with other countries,
which can boost the economy and create jobs.
• Improving safety: A good transport system can help to reduce traffic accidents, which can save lives
and reduce injuries.
• Protecting the environment: A good transport system can help to reduce greenhouse gas emissions and
improve air quality, which is important for Rwanda, which is a signatory to the Paris Agreement on
climate change.
• Creating jobs: The transport sector is a major employer in Rwanda, and a good transport system can
help to create even more jobs.
• Improving quality of life: A good transport system can make it easier for people to get around and
access opportunities, which can improve their quality of life.
COMMUNICATION
Introduction Internet is also becoming increasingly
important for communication in
Rwanda. It is used for a variety of
purposes, including social networking,
email, and online shopping. The
internet has made it easier for people
to connect with people from all over the
world, and it has also made it easier for
people to access information and
services.
Communication refers to the
sharing, exchange or transfer
of information, ideas and
messages from one place to
another. Communication takes
place from the sender to the
receiver
Communication in Rwanda is
a complex and ever-evolving
process. The country has a
rich history of oral
communication, which
continues to play an important
role in everyday life. However,
Rwanda has also embraced
new technologies, such as
mobile phones and the
internet, which have had a
profound impact on the way
Oral communication
This has been the primary
means of communication
in Rwanda for centuries. It
is used for everyday tasks,
such as exchanging news
and information, making
decisions, and resolving
conflicts.
Internet
Mobile phones have had a major
impact on communication in
Rwanda. They are used for a
variety of purposes, including
making calls, sending text
messages, and accessing the
internet. Mobile phones have made
it easier for people to stay in touch
with friends and family, access
information, and conduct business
Mobile
Phones
Challenges
Despite the progress that has been made,
there are still challenges to
communication in Rwanda. One challenge
is the high illiteracy rate. 43% of adults in
Rwanda are illiterate. This makes it
difficult for people to access information
and services that are available online.
Another challenge is the cost of
communication. Mobile phone and
internet services can be expensive in
Rwanda, which can limit access for some
MEANS OF COMMUNICATION IN RWANDA
1. RADIO
Radio is the most popular form of
communication in Rwanda. It is used
to broadcast news, music, and other
information.
The radio passes on information to
large masses of people through
sound. It is a mass medium since
information reaches many people at
once. There are several radio
stations in Rwanda.
They include Flash FM, Radio
Rwanda, Isango Star, Radio 10, KT
Radio and Magic FM.
2. PRINT MEDIA
Print media includes newspapers,
magazines, and journals.
Newspapers are the most popular
form of print media in Rwanda.
They are used to report on current
events and provide information
about the government and other
important institutions.
Examples of the print media in
Rwanda include Business Daily,
The NewTimes, Kigali Today,
Inyarwanda, imvaho nshya and
The News of Rwanda.
3. TELEVISION
Television passes information to
large masses of people through
pictures and sound. It is a mass
communication medium.
Some of the television stations in
Rwanda include RBA Rwanda
TV, Family TV, TV 1, Canal+,
France 24 and BBC. Television
access in the country is limited to
urban areas.
4. LETTERS
Letters are a traditional form of
communication in Rwanda. They are
used to send personal messages and
to communicate with businesses and
government agencies. .
Letters are written on paper and
addressed to the recipient. They can
be sent by post or by hand. Post is the
most common way to send letters in
Rwanda.
There are two main postal services in
Rwanda: the Rwandan Post Office
and the DHL Express. The Rwandan
Post Office is the cheaper option
5. TELEPHONES
Telephones are a popular form
of communication in Rwanda.
They are used to make calls to
friends, family, and businesses.
This involves sending of
messages in form of sound
from the sender to the receiver.
A recent report by RURA shows that
mobile phone penetration was at
78.8 per cent with 9.5 million active
subscribers. Beyond calls and text
messaging, telephones in Rwanda
are used for money transfer, content
streaming, advert and connectivity
and internet surfing among other
purposes.
6. FAX MACHINES
Fax machines are used to send
documents and other information
over the telephone line. Fax machine
usage in Rwanda is still relatively
common, despite the rise of the
internet and email. This is due to a
number of factors, including the high
cost of internet access and the lack
of reliable electricity in many parts of
the country. Fax machines are also
seen as a more secure way to send
documents than email, as they are
not as easily intercepted.
According to a 2017 report by the
Rwanda Utilities Regulatory Authority
(RURA), there were an estimated
100,000 fax machines in use in
Rwanda.
7. E-MAIL
E-mail is a popular form of
communication in Rwanda. It is
used to send messages and
documents to friends, family, and
businesses.
The use of email in Rwanda is
growing rapidly. According to a
2018 report by the Rwanda Utilities
Regulatory Authority (RURA), there
were an estimated 2.5 million email
users in Rwanda, up from 1.5
million in 2016. This growth is
being driven by a number of
factors, including the increasing
availability of internet access, the
growing use of smartphones, and
the government's efforts to
8. INTERNET
The internet is a popular form of
communication in Rwanda. It is
used to access information,
communicate with others, and
conduct business.
Internet usage in Rwanda has been
growing rapidly in recent years. In
2019, there were an estimated 4.25
million internet users in Rwanda, up
from 2.5 million in 2016.
This growth is being driven by a
number of factors, including the
increasing availability of internet
access, the growing use of
smartphones, and the
government's efforts to promote
digital literacy.
FACTORS INFLUENCING THE DEVELOPMENT OF COMMUNICATION IN
RWANDA
• Terrain: Rwanda's hills and mountains provide ideal locations for transmitters,
ensuring that communication signals can reach all parts of the country.
• Climate: Rwanda's relatively calm climate helps to protect transmitters and other
communication equipment from damage.
• Size: Rwanda is small enough that it is easy to establish communication networks
that cover the entire country.
• Technology: The communication sector in Rwanda uses modern technology, which
has helped to improve the quality of communication in the country.
• Government policies: The Rwandan government has put in place policies that
support the development of Information and Communication Technology (ICT).
• Skilled labour: Rwanda has a skilled workforce that is able to support the
development of communication.
• Peace and stability: Rwanda is a peaceful and politically stable country, which has
attracted many investors and boosted the development of communication.
• Purchasing power: The improved purchasing power of Rwandan citizens has also
helped to boost the development of communication.
IMPORTANCE OF COMMUNICATION IN
RWANDA
1. Communication promotes education
through e-learning, distance, and
online learning.
• Education is enhanced through the use of
communication technologies.
• E-learning platforms provide accessible
and flexible learning opportunities.
• Distance learning allows students to study
remotely and access educational
resources.
2. Communication improves the
effectiveness and efficiency of
information exchange.
• Sending and receiving information
becomes faster and more streamlined.
• Communication tools and platforms
facilitate efficient information sharing.
• Collaborative communication enhances
3. Communication fosters trade and
business operations in the country.
• Communication enables efficient
communication between businesses.
• Trade networks are strengthened through
effective communication channels.
• Business operations benefit from improved
communication with customers and
partners.
4. Communication facilitates government
communication with the public.
• Government policies and administrative
information can be easily disseminated.
• Communication platforms allow for
transparent and timely information sharing.
• Citizens can stay informed and engaged
5. The internet enables the access of information,
knowledge, and ideas on various topics.
• The internet provides a vast repository of information
and resources.
• Knowledge sharing and idea dissemination are
made possible through online platforms.
• Access to diverse perspectives and global
information promotes learning and innovation.
6. The communication sector creates
employment opportunities for Rwandan
citizens.
• Various roles and positions are created within the
communication sector.
• Job opportunities emerge in telecommunications,
media, technology, and related fields.
• The growth of the sector contributes to economic
development and employment.
7. The government generates revenue from
communication companies.
• Government levies taxes and fees on
communication services.
• Revenue is generated from licensing and regulatory
processes.
• Funds are used for public services and infrastructure
development.
8. Communication enables the implementation of
regional integration programs.
• Communication platforms facilitate coordination and
collaboration between regions.
• Information sharing supports regional cooperation
and development.
• Integration initiatives benefit from efficient and
effective communication channels.
9. Communication enables the penetration of
information to remote areas.
• Communication technologies bridge the gap
between isolated areas and the rest of the country.
• Remote communities gain access to information,
services, and opportunities.
• Development and progress are extended to
previously isolated regions.
10. Communication strengthens social ties within
Rwandan society.
• Communication tools and platforms connect
individuals and communities.
• Social networks are expanded, promoting interaction
and collaboration.
• Communication fosters a sense of belonging and
collective identity.
TABLE OF THE CHALLENGES AND RECOMMENDED
ACTIONS TO THE DEVELOPMENT OF COMMUNICATION IN
RWANDA
Challenge Recommended Action
Lack of capital Increase investment in the communication sector
Low technological
progress
Promote innovation and adoption of new
technologies
Harsh climatic conditions Strengthen communication infrastructure
Natural occurrences Improve the skills of the workforce
Shortage of skilled labor Expand access to communication services in
rural areas
Rural population's limited
access
Improve the reliability of the power supply
Power supply challenges Reduce taxes and operation charges
High taxes and operation
charges
Support local companies
TRADE IN RWANDA
OBJECTIVES OF THE
LESSON
At the end of this lesson, Students will be able to clearly:
• Identify the factors that influence trade in Rwanda.
• Explain the importance of trade to Rwanda
• Identify the problems that affect trade in Rwanda.
• Propose solutions to the problems that affect the
development of trade in Rwanda.
TRADE IN RWANDA
Trade is the action of buying and
selling goods and services
It can be conducted through a
variety of channels, including
direct sales, retail stores, and
online marketplaces.
Rwanda's main trading partners
are the Democratic Republic of
the Congo, Uganda, Kenya, and
China.
Rwanda imports a variety of
goods, including machinery and
equipment, steel, cement and
construction material, petroleum
products, electric equipment, and
foodstuffs
Rwanda exports a variety of goods,
including tea, coffee, coltan,
cassiterite, iron ore, animal hides,
forest products, and agro-based
products. It also exports services,
such as tourism.
TYPES OF TRADE
1. International trade: This is the
exchange of goods and services
between countries.
2. Domestic trade: This is the
exchange of goods and services
within a country.
3. Retail trade: This is the sale of
goods to consumers.
4. Wholesale trade: This is the sale
of goods to businesses.
5. Service trade: This is the
exchange of services, such as
transportation, insurance, and
consulting.
Which type of trade involves the exchange
of goods and services between countries?
A. International trade
B. Domestic trade
C. Retail trade
D. Wholesale trade
• What is the main characteristic of
domestic trade?
A. It involves the sale of goods to businesses.
B. It involves the exchange of goods and
services between countries.
C. It involves the sale of goods to consumers
within a country.
D. It involves the exchange of services, such
as transportation and insurance.
• Wholesale trade is characterized by:
A. The sale of goods to consumers.
B. The exchange of goods and services
between countries.
C. The exchange of services, such as
transportation and insurance.
D. The sale of goods to businesses.
• Which type of trade involves the sale of
goods to businesses?
A. International trade
B. Domestic trade
C. Retail trade
D. Wholesale trade
• In which type of trade are services like
transportation, insurance, and consulting
exchanged?
A. International trade
B. Domestic trade
C. Retail trade
D. Service trade
IMPORTS AND
EXPORTS
Imports are goods and services
brought into one country from
another. They are very important in
international trade. The Rwandan
government imports goods like
petroleum products, textiles,
vehicles, machinery, medical
equipment, and other goods that it
does not produce.
Rwanda’s major imports in 2022
Exports are goods and
services produced in a country
and sold to a foreign country.
Rwanda exports goods and
services that it produces. They
include tea, coffee, and
minerals
BILATERAL AND MULTILATERAL TRADE
• Bilateral trade is trade
between two countries.
Rwanda engages in
bilateral trade with many
countries, including Kenya,
Uganda, and the
Democratic Republic of the
Congo.
• Multilateral trade is trade
between multiple countries.
Rwanda engages in
multilateral trade through
organizations such as the
World Trade Organization
(WTO) and the East African
Community (EAC).
0 20,000 40,000 60,000 80,000 100,000120,000140,000
Kenya
Belgium
DR Congo
Hong Kong
Swaziland
Switzerland
India
United Kingdom
South Africa
Germany
China
Thailand
Italy
Singapore
United States
Sudan
Uganda
United Arab Emirates
Rwanda's exports Value (thousands) in
2019
0 20,000 40,000 60,000 80,000 100,000 120,000 140,000
Uganda
Kenya
South Africa
China
United Arab Emirates
Belgium
Tanzania
Sweden
India
Finland
Germany
France
Japan
United Kingdom
United States
Spain
Denmark
South Korea
DR Congo
Netherlands
Saudi Arabia
Egypt
Malaysia
Israel
Malawi
Burundi
Jordan
Singapore
Zambia
Italy
Indonesia
Switzerland
Sudan
Canada
Kuwait
Rwanda's Imports (thousands) in 2019
BALANCE OF TRADE
The balance of trade is the
difference in value between a
country's imports and exports of
Goods
A positive balance of
trade means that a country
exports more than it imports.
A negative balance of
trade means that a country
imports more than it exports.
Rwanda has a negative balance
of trade. This is because the value
of its imports is much higher than
the value of its exports.
What is the balance of trade?
A. The difference in value between a
country's imports and exports.
B. The total value of a country's imports.
C. The total value of a country's exports.
D. None of the above.
2. What does a positive balance of trade
indicate?
A. A country exports more than it imports.
B. A country imports more than it exports.
C. A country has a trade deficit.
D. None of the above.
4. Which country has a negative balance
of trade?
A. Rwanda
B. China
C. United States
D. All of the above.
3. What does a negative balance of trade
indicate?
A. A country exports more than it imports.
B. A country imports more than it exports.
C. A country has a trade surplus.
D. None of the above.
5. What are the possible implications of
a negative balance of trade?
A. A country may have to borrow money
from other countries to finance its
imports
B. A country may experience job losses in
its export industries.
C. A country's currency may lose value.
D. All of the above.
BALANCE OF PAYMENTS
When the
balance of trade
is positive, it
means a country
is paid more that it
pays outside.
The balance of payments is the difference in total value
between payments into and out of a country over a given period.
When the balance of trade of a country is negative, it means its
balance of payment show that the country pays more outside
than it is paid.
1. What is the balance of
trade?
A. The difference in value
between a country's
imports and exports.
B. The total value of a
country's imports.
C. The total value of a
country's exports.
D. None of the above.
2. What is the balance of
payments?
A. The difference in total
value between payments
into and out of a country
over a given period.
B. The total value of a
country's imports.
C. The total value of a
country's exports.
D. None of the above.
3. What does a positive
balance of trade indicate?
A. A country exports more
than it imports.
B. A country imports more
than it exports.
C. A country has a trade
deficit.
D. None of the above.
than it imports.
B. A country imports more
than it exports.
C. A country has a trade
surplus.
D. None of the above.
5. What are the possible
implications of a negative
balance of trade?
A. A country may have to
borrow money from other
countries to finance its
imports.
B. A country may
experience job losses in
its export industries.
C. A country's currency may
lose value.
D. All of the above.
6. Which of the following is
NOT a factor that can
contribute to a negative
balance of trade?
A. A strong domestic
economy.
B. A weak foreign economy.
C. A high value of the
domestic currency.
D. A low value of the foreign
currency.
balance of trade?
A. A weak domestic
economy.
B. A strong foreign
economy.
C. A low value of the
domestic currency.
D. A high value of the
foreign currency.
8. Which of the following is
a government policy that
can help to reduce a trade
deficit?
A. Devaluing the currency.
B. Increasing tariffs on
imports.
C. Reducing taxes on
exports.
D. All of the above.
9. Which of the following is
a government policy that
can help to increase a
trade surplus?
A. Appreciating the
currency.
B. Decreasing tariffs on
imports.
C. Increasing taxes on
exports.
D. None of the above.
GROUP DISCUSSION
• Group 1: Discuss the factors influencing trade in Rwanda
• Group 2: Discuss the positive impact of trade to Rwanda’s Economy and
development
• Group 3: What are the key factors limiting Rwanda's ability to effectively participate
in international trade and expand its market presence? Explain them
• Group 4: Propose solutions to these problems affecting development of Trade in
Rwanda.
• Poor transport and communication
• Lack of sufficient information and knowledge
• The challenge of being landlocked
• High tariffs
Group 5: Propose solutions to these problems affecting development of Trade in
Rwanda.
• Low purchasing capacity:
• Foreign laws that affect ability of Rwandan businesses to engage in international
FACTORS AFFECTING TRADE IN RWANDA
• Transport and Communication: Trade depends on efficient transportation and
communication. Goods and services need to be transported from production areas to
markets.
• Availability of Markets: Trade requires a ready market for buying and selling goods and
services. Markets play a crucial role in completing the production process.
• Adequate Labour Force: Rwanda has a steady supply of skilled and unskilled labor.
Workers contribute to various trading activities in companies and enterprises.
• Favourable Government Policies: Rwandan government designs policies to develop and
strengthen trade. The Rwandan Development Board (RDB) creates an enabling environment
for local and foreign investors.
• Political Stability: Investors prefer politically stable countries for investment. Assurance of
peace and safety of facilities attract trade investments.
• Presence of Entrepreneurs: Many Rwandans possess entrepreneurial skills and seek to
practice entrepreneurship. Entrepreneurial spirit contributes to trade development in the
country.
• Regional Integration: Rwanda's membership in regional blocs like the East Africa
Community (EAC) and COMESA promotes trade. Integration initiatives encourage both
internal and international trade.
• Establishment of Industries: Government eases investment policies to support the
establishment of industries. Entrepreneur-friendly policies attract industry development.
• Favourable Climatic Conditions: Rwanda's climate supports industrial development.
Suitable conditions contribute to trade growth in various sectors.
IMPORTANCE OF TRADE IN
RWANDA
• Trade provides the government with revenue. The government of Rwanda earns revenue
through taxes levied on trade establishments.
• Trade creates employment opportunities. Trade has created employment opportunities to a
number of people in Rwanda.
• Trade stimulates economic growth. Trade has stimulated the growth and development of
various towns like Kigali, Rwamagana, Kayonza, and Musanze.
• International trade is a source of foreign exchange. International trade is a source of
foreign exchange through exports.
• Trade influences the development of infrastructure. Trade has influenced both the
government and the private sector to establish infrastructure such as roads.
• Trade improves the livelihood of the people. Trade improves the livelihood of the people by
providing a source of income to the traders.
• International trade promotes international relationships. International trade promotes
international relationship between Rwanda and her trading partners.
• Trade facilitates sustainable utilization of resources. Trade has facilitated sustainable
utilization of the available resources.
• Trade influences the development of industries. Trade has influenced the development of
various industries in the country.
PROBLEMS AFFECTING TRADE IN
RWANDA
• Poor transport and communication: Inadequate road infrastructure, especially in rural areas,
hinders the smooth movement of goods and increases transportation costs.
• Lack of sufficient information and knowledge: Insufficient understanding of market requirements
and trends limits Rwanda's ability to effectively participate in international trade.
• The challenge of being landlocked: Rwanda's lack of direct access to seaports poses difficulties and
additional costs in transporting goods to and from international markets.
• High tariffs: The imposition of high taxes on imported and exported goods makes the pricing of
products less competitive in the market.
• Inadequate capital: Limited access to capital restricts the growth and sustainability of businesses in
Rwanda.
• Stiff competition: Rwandan traders face fierce competition from international competitors, which can
make it challenging to penetrate and thrive in foreign markets.
• Low purchasing capacity: The low purchasing power of both domestic and foreign consumers
affects the demand for goods, both locally produced and imported.
• Foreign laws: Laws enacted by other countries may create barriers or unfavourable conditions for
Rwandan businesses, affecting their ability to engage in international trade.
• Instability in neighbouring countries: Political instability in neighbouring countries can create
uncertainties and risks for Rwandan traders.
• Production of similar goods by neighbouring countries: Competing with neighbouring countries
that produce similar goods can lead to intense competition in regional markets.
SOLUTIONS TO PROBLEMS AFFECTING TRADE
IN RWANDA
POOR TRANSPORT AND COMMUNICATION
• Invest in infrastructure, such as roads,
railways, and airports.
• Partner with neighbouring countries to
improve regional transportation and
communication networks.
• Use technology to improve
communication and coordination between
businesses and government agencies.
Road network in Africa
Rail way
LACK OF SUFFICIENT INFORMATION AND
KNOWLEDGE
• Provide businesses with access to
market research and data.
• Create training programs to help
businesses develop the skills they
need to compete in international
markets.
• Promote trade missions and other
events that allow businesses to
connect with potential buyers and
partners.
Momo pay
THE CHALLENGE OF BEING LANDLOCKED
• Partner with neighbouring countries
to develop regional trade
agreements.
• Invest in logistics and warehousing
facilities to reduce transportation
costs.
• Develop value-added products that
can command a higher price in
international markets.
EAC Member countries
HIGH TARIFFS
• Negotiate trade agreements with other
countries to reduce or eliminate tariffs.
• Develop value-added products that can
command a higher price in international
markets, even with tariffs.
• Focus on export markets where tariffs
are lower.
African Continental Free Trade
Agreement
Value Added Coffee
Map of Africa indicating COMESA
membership
Former
members
Current
members
Map of Africa indicating SADC (light green)
and SADC+SACU (dark green) members.
INADEQUATE CAPITAL
• Provide businesses with access to loans and other
forms of financing.
• Create a favourable investment climate to attract
foreign investment.
• Encourage businesses to form partnerships with
larger, more established companies.
STIFF COMPETITION
• Focus on niche markets where
Rwandan businesses can compete
effectively.
• Develop innovative products and
services that offer a unique value
proposition.
• Invest in marketing and branding to
build brand awareness and loyalty.
LOW PURCHASING CAPACITY
• Focus on markets with growing middle
classes.
• Develop products and services that are
affordable for a wide range of consumers.
• Partner with retailers and distributors to
reach a wider audience.
INSTABILITY IN NEIGHBOURING COUNTRIES
• Monitor the political situation in
neighboring countries closely.
• Develop contingency plans in case of
instability.
Invest in insurance to protect against losses
due to political instability.
PRODUCTION OF SIMILAR GOODS BY
NEIGHBORING COUNTRIES
• Focus on developing products and
services that are unique to Rwanda.
• Invest in marketing and branding to
differentiate Rwandan products from
those of neighbouring countries.
• Form partnerships with businesses in
other countries to help market and
distribute Rwandan products.
Unit 17 Transport, communication and Trade in Rwanda....pptx

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Unit 17 Transport, communication and Trade in Rwanda....pptx

  • 1. UNIT 17: TRANSPORT, COMMUNICATION AND TRADE IN RWANDA
  • 2. MAJOR TYPES OF TRANSPORT Transport is the physical movement of people, animals, goods and services from one place to another. There are three major types of transport in Rwanda. They include the following. (a) Air transport (b) Water transport (c) Land transport Land transport in Rwanda is in many forms: 1. Porter transport 2. Pipeline transport 3. Road transport 4. Cable transport • However, the most commonly used form of land transport in the country is road transport.
  • 3. 1. ROAD TRANSPORT This is the movement of people and goods by road by the use of automobiles such as motor cycles, vehicles, bicycles. There are many types of roads: • Tarmac or paved roads: the main roads • Marram roads: the secondary roads covered by laterite, sand or soil. • Feeder roads: Smaller than Marram roads, made by beaten soil and sometimes mixed with sand. • Footpaths The country has good tarmac roads that have been built in various parts of the country. They all meet at Kigali. This has created a road network that beats the challenges of the landlocked nature of the country. The roads connect Rwanda to other countries in the region. Roads in Rwanda cover a total area that is close to 14,000 km.
  • 4.
  • 5. The government of Rwanda enacted a law that governs the roads in the country; this is law is No. 55/2011 of 14/12/2011. According to the above law, roads are classified into three categories. They are: 1. National roads: roads include roads that link up Rwanda to her neighbors. They are also known as international roads 2. Districts and City of Kigali roads: connect districts and upcountry areas to the city of Kigali 3. Specific roads that connect other areas of concern such as
  • 6. RWANDAN ROAD NETWORK Rwanda is well connected internally and externally by a wide network of roads. The main roads in Rwanda include the following. • Kigali – Muhanga – Huye – Akanyaru – Burundi border covering about 190 km. • Kigali – Ngoma – Rusumo – Tanzania border stretching to about 167 km. • Kigali – Kayonza – Kagitumba – Uganda border covering about 191 km. • Kigali – Gicumbi – Gatuna – Uganda border covering about 80 km. • Kigali – Musanze – Rubavu – Goma/ Democratic Republic of Congo 156 km. • Kigali – Huye - Rusizi – Bukavu covering about 284 km. • Kigali – Huye – Rusizi – Bugarama Burundi border covering 322 km.
  • 7. ADVANTAGES OF ROAD TRANSPORT • Flexible service: Road transport is less rigid. Passengers can stop anywhere they want. • Less expensive: Road transport is the cheapest form of transport for short distances. • Time saving: Road transport saves time especially when short distances are involved. • Door to door service: Road transport can offer door to door services unlike other types of transport. • Easy to establish: Road transport is easy to establish since the construction and maintenance of roads is manageable. • Service in rural areas: Road transport is the most suitable for moving goods and people in the rural areas. • Minimum risk of damage in transit: Road transport is suitable for transportation of fragile and delicate goods such as glass and ceramic goods. • Less packaging expenses: This form of transport does not require serious packaging as it is with other forms of transportation. • It is easier to access vehicles: It is easier for people to own and purchase vehicles, bicycles and motor cycles than airplanes, motor boats and ships.
  • 8. DISADVANTAGES OF ROAD TRANSPORT • Accidents and breakdowns: The chances of the occurrence of accidents and breakdowns are more compared to other types of transport. • Unsuitable for long distances: This mode of transport is unsuitable and costly for transporting goods over long distances. • Slow: The speed of motor transport is slow compared to air transport. • Lack of organization: Road transport is less organized when compared to the other forms of transport • Rising cost of petrol and diesel: Due to high prices of petroleum products and diesel, the operational costs of road transport are always rising. • Traffic controls: Traffic controls on the highways may unnecessarily consume one’s time. • Heavy taxes on transport: The agencies involved in transport are heavily taxed by the government. This affects their pricing. • Traffic jam: Road transport sometimes becomes costly in terms of time and fuel especially when motorists are stuck in traffic for long hours • Uneconomical return journeys: Due to lack of fixed operation times, vehicles make return journeys when they are empty. • It is affected by weather: Road transport is affected by weather conditions especially during the rainy season. • Unsuitable for perishable goods: Perishable goods such as vegetables, fruits and milk products that are to be transported for long distances may go bad before reaching their final destination. • Vulnerable to robbery: Vehicles on the roads can be attacked by highway robbers.
  • 9. 2. AIR TRANSPORT Air transport is a form of transport that involves moving people, goods, services and people from one place to another by air. Mode of transportation includes: • Aeroplanes, • Hot air balloons and • Helicopters Air transport is divided into • Domestic and • International air transport.
  • 10. INTERNATIONAL AIRPORTS There are two main international airports in Rwanda. They are: • Kigali International Airport: The airport is located in the suburb of Kanombe at the eastern edge of Kigali • Kamembe International Airport: It is located in the town of Cyangugu which serves south western Rwanda and the town of Bukavu in the Democratic Republic of Congo
  • 11.
  • 12. Bugesera International Airport will be located in southeastern Rwanda, in Bugesera District near the town of Nyamata. Its location is approximately 24 kilometers (15 mi) and it is expected to start working in 2022
  • 13. DOMESTIC AIRPORTS IN RWANDA • Butare Airport: Located in the city of Butare in Huye District, Southern Province. Its location lies approximately 80 km (50 mi) • Gisenyi Airport: Located in Rwanda’s Western Province in Rubavu District in the town of Gisenyi at the international border with D.R. Congo. Its location lies approximately 94 km (58 mi) • Nemba Airport: Located in Rwanda’s Eastern Province in Bugesera District in the town of Nemba, at the International border with Republic of Burundi. Its location lies approximately 50 km (31 mi) • Ruhengeri Airport: Located in Rwanda’s Northern Province in Musanze District in the town of Ruhengeri. Its location lies approximately 70 km (43 mi)
  • 14. ADVANTAGES OF AIR TRANSPORT • It is fast: It is the fastest mode of transport. • It is convenient: It is a convenient means of transport used to send costly, light and perishable goods. • It is not affected by relief features: The presence of mountains, oceans and rivers create no obstruction to air transport. • It is useful for agriculture: Aeroplanes are used to spray pesticides on farms. • Strategic importance: This form of transport can be used in risky areas such as the war torn and troubled places to offer humanitarian services. • It is secure: It is a relatively secure type of transport to use. There is security for the passengers and goods that are being transported. • It operates on fixed time schedules and routes. This enables users to plan in advance
  • 15. DISADVANTAGES OF AIR TRANSPORT • Risky: The occurrence of air accidents leads to great losses of lives and goods. • Costly: Air transport is regarded as the most expensive form of transport. The cost of purchasing and maintaining aircrafts and airports is very high. This leads to high freight charges and air fare. • Small carrying capacity: The aircrafts have small carrying capacities. They are therefore not suitable for carrying bulky goods. • Affected by weather changes: This form of transport is affected by changes in the weather. Very heavy rainfall, fog or snow may lead to cancellation of flights. • Highly trained personnel: Air transport requires great skill from highly trained and qualified personnel. These skilled personnel are few in developing countries such as Rwanda. • Air transport is not flexible since aircrafts only land in areas with airports.
  • 16. 4. WATER TRANSPORT Water transport is the movement of goods and people over water bodies such as rivers, lakes, seas and oceans. Water vessels such as rafts, canoes, dhows, boats, ships and ferries are used in water transport. Water transport is divided into: • Inland waterways involve transport on water bodies such as rivers, canals and lakes • Sea waterways involve transport on seas and oceans. • Water transport is present on Lakes Kivu, Muhazi, Burera, Rweru and Ihema. It is also present in River Akagera on a small scale. There are limited modern boat services between the major ports of Cyangugu, Kibuye and Gisenyi.
  • 17.
  • 18.
  • 19. ADVANTAGES OF WATER TRANSPORT • Less maintenance cost: Water bodies occur naturally and do not require maintenance. • Cheap: This type of transport is relatively cheap as compared to rail, air and road transport. • Suitable for bulky goods: Heavy and bulky goods can be easily transported at little cost. • Important for foreign trade: Water transport plays an important role in foreign trade. • Suitable for fragile goods: Water transport is the most reliable type of transport that is fit for transporting fragile goods. • Less congestion: Water transport experiences less traffic congestion compared to road transport.
  • 20. DISADVANTAGES OF WATER TRANSPORT • Slow: It is a slow means of transport compared to road and air transport. • It is risky: Water transport is riskier compared to other means of transport. • Limited area of operation: This type of transport can only be used in areas with lakes, canals and rivers. • It is seasonal: Some seasonal rivers and canals cannot be used for transport throughout the year. • Unreliable: The Inland water transport is unreliable. Sometimes, rivers change their courses disrupting the normal routes. • Affected by strong waves: The water transport depends on the state of the water bodies. When there are strong and destructive waves, the vessels are destroyed and accidents are bound to happen. • The presence of obstacles such as rocky islands and floating vegetation hinder the movement of vessels. • The construction of ports is very costly.
  • 21.
  • 23. This involves movement of people and goods from one place to another using trains that run on rail lines. There are several planned railway lines in Rwanda, including a line to Tanzania. 5. RAILWAY TRANSPORT
  • 24. Shanghai Maglev - 460 kph/286 mph (China)
  • 25. ADVANTAGES OF RAILWAY TRANSPORT • It is convenient in transporting bulky goods over long distances. • Railway transport is dependable since it is less affected by poor weather. • It is a cheaper means of transport compared to road or air transport. • Railways have a large carrying capacity compared to roads. • The railway lines occupy less space and thus less land. • Railway transport is safe since the chances of accidents or breakdowns are minimal. • Trains operate on fixed time schedules and thus are less affected by traffic congestion.
  • 26. DISADVANTAGES OF RAILWAY TRANSPORT • Railway transport is inflexible. It operates on fixed time schedules and routes. • Construction and maintenance of railway lines is expensive. • Railway transport is unsuitable and uneconomical over short distances. • Trains use varied rail gauges. This makes interconnection between countries impossible. • Increased costs of construction. • Only one train uses a single railway line at a time. This causes delays in movement of goods and people.
  • 28.
  • 29. 6. PIPELINE TRANSPORT This refers to the movement of goods mainly liquids through pipes from one place to another. Goods transported using pipeline transport include water, gas and oil. In Rwanda pipeline is used to deliver gas from Rubona on the share of Lake Kivu to Bralirwa factory at Gisenyi and water for people.
  • 30. ADVANTAGES OF PIPELINE TRANSPORT • It is cheaper to operate and maintain pipelines compared to other means of transport. • Pipelines can be laid on mountainous and rough terrains, swamps, water and dry land where roads and railways cannot be constructed. • Pipelines allow for continuous supply of the commodity that is being transported. • Pipelines are not affected by bad weather such as fog and heavy rainfall unlike other means of transport. • Pipelines are convenient in transporting highly inflammable commodities such as petroleum. • Pipeline transport does not pollute the environment unlike other means such as road transport. It is only in cases of leakages that pollution may occur.
  • 31. DISADVANTAGES OF PIPELINE TRANSPORT • High initial cost: The initial cost of building a pipeline can be very high. This is a major barrier to entry for new pipeline projects. • Environmental impact: Pipelines can have a negative impact on the environment if they are not properly constructed and maintained. This can include leaks of oil or other hazardous materials, which can pollute the environment and harm wildlife. • Security risks: Pipelines are a potential target for terrorist attacks. This is a major concern for governments and businesses that rely on pipelines to transport goods. • Limited flexibility: Pipelines are not as flexible as other modes of transportation, such as trucks and trains. Once a pipeline is built, it is difficult to change the route or the type of product being transported. • Single-use: Pipelines are typically designed to transport a single type of product. This means that they cannot be used to transport multiple types of products, which can limit their usefulness. • Vulnerabilities to damage: Pipelines can be damaged by natural disasters like earthquakes or flooding, as well as human activities like construction, which can lead to leaks or spills.
  • 32.
  • 33.
  • 34. HUMAN & ANIMAL TRANSPORT Human and animal transport has been a part of human history for centuries. The first humans to walk the Earth had to travel long distances to find food and shelter. Animals have also been used for transport for centuries. Horses, camels, and elephants were all used to transport people and goods long distances. Today, animals are still used for transport in some parts of the world. For example, camels are still used to transport goods in the Middle East. Human and animal portage in Rwanda is a traditional form of transportation that has been used for centuries. Porters, who are typically men, carry goods on their backs or on the backs of animals, such as donkeys or mules. Porterage is a
  • 35.
  • 36. Camel Train in Sahara desert
  • 37. ADVANTAGES • Efficient: Animals can travel long distances quickly and easily. • Cost-effective: Animal transport is relatively inexpensive, especially when compared to other modes of transportation, such as air or sea. • Flexible: Animals can be transported to a variety of destinations, including remote areas. • Reliable: Animal transport is a reliable way to get goods to their destination. • Environmentally friendly: Animal transport produces fewer emissions than other modes of transportation, such as trucks and trains. • Safe: Animal transport is a relatively safe way to transport goods. • Stimulates local economies: Animal transport can stimulate local economies by providing jobs and income for people in the areas where animals are transported.
  • 38. DISADVANTAGES • Animal welfare: Animal transport can be stressful for animals, and there is always the risk of injury or death. • Pollution: Animal transport can pollute the environment with manure, urine, and other waste. • Accidents: Animal transport can be dangerous, and there is always the risk of accidents that can injure or kill people or animals. • Cost: The cost of animal transport can be high, especially when transporting animals over long distances. • Time: Animal transport can take a long time, especially when transporting animals over long distances. • Weather: Animal transport can be affected by weather conditions, such as storms or snow. • Security: Animal transport can be a target for theft or vandalism.
  • 39.
  • 40. FACTORS INFLUENCING DEVELOPMENT OF TRANSPORT IN RWANDA • Relief: Areas with gentle slopes in the Central and Eastern parts of the country have a network of well developed roads compared to the North western parts with steep and rugged slopes • Vegetation: Areas with little or no vegetation especially in the Eastern region of Rwanda are good for construction of transport facilities. • Presence of water bodies: Water bodies in Rwanda consist of lakes and rivers. These water bodies have promoted water transport. • Fertile soils: In Rwanda, areas with fertile soils that support agricultural activities are connected with a network of roads. This is due to the need of transporting the agricultural produce • Adequate capital: The Rwandan government in partnership with developed countries and other international agencies is able to raise enough capital for the construction of transport facilities • Business opportunities: There are different businesses that have come up in Rwanda in the recent past. These businesses attract clients and more investors and build different transport systems • Industrialization: The construction of roads and other forms of transport is attributed to the presence of industries. • Political factors: Good governance in the country has led to proper implementation of
  • 41. PROBLEMS AFFECTING TRANSPORT Problem Description Impact Poor road infrastructur e Rwanda's road network is in poor condition, with many roads being unpaved and in need of repair. This makes it difficult and dangerous to travel by road, and can also lead to delays in the delivery of goods and services. Increased travel time and cost, decreased safety Lack of public transportatio n Rwanda has a limited public transportation system, which makes it difficult for people to get around without a car. This is especially a problem in rural areas, where there is often no public transportation at all. Reduced mobility, increased traffic congestion High cost of transportatio n The cost of transportation in Rwanda is high, which can make it difficult for people to afford to travel. This is especially a problem for people who live in rural areas, where they may need to travel long distances to get to work or school. Reduced access to opportunities, increased poverty Inadequate air transportatio Rwanda has only one international airport, which is located in the capital city of Kigali. This means that people who live in other parts of the country have to travel long distances to get to the airport, which Reduced connectivity, increased travel
  • 42. Poor traffic management Traffic congestion is a major problem in Rwanda, especially in the capital city of Kigali. This can lead to delays and accidents, and can also make it difficult for people to get around. Reduced productivity, increased pollution Unskilled drivers Many drivers in Rwanda are unskilled, which can lead to accidents and traffic congestion. Increased risk of accidents, decreased safety Poor vehicle maintenance Many vehicles in Rwanda are poorly maintained, which can lead to breakdowns and accidents. Increased risk of accidents, decreased safety Lack of enforcement of traffic laws Traffic laws are often not enforced in Rwanda, which can lead to unsafe driving conditions. Increased risk of accidents, decreased safety Corruption Corruption is a major problem in Rwanda, and this can also affect the transport sector. For example, corrupt officials may demand bribes from drivers or businesses, or they may fail to enforce traffic laws. Increased cost of transportation, decreased safety Natural disasters Rwanda is prone to natural disasters such as floods and landslides, which can damage roads and other infrastructure. Reduced connectivity, increased travel time and cost Climate change Climate change is expected to have a negative impact on Increased risk of natural
  • 43. POSSIBLE SOLUTIONS • Invest in road infrastructure: Repair and upgrade existing roads, build new roads in rural areas, promote the use of alternative modes of transportation. • Develop a more comprehensive public transportation system: Make it easier for people to get around without a car, provide subsidies for public transportation, work with the private sector to develop new public transportation options. • Provide subsidies for transportation: Make transportation more affordable for people to use, provide subsidies for public transportation or for private transportation. • Build new airports or expand existing airports: Make it easier for people to travel to and from Rwanda, work with the private sector to develop new air transportation options. • Improve traffic management: Build new roads, improve public transportation, enforce traffic laws more strictly, work with the private sector to develop new traffic management technologies. • Provide driver training programs: Improve driver skills and make the roads safer, provide online driver education courses or in-person driver training programs. • Provide vehicle maintenance programs: Improve vehicle maintenance and make the roads safer, provide mobile car repair services or discounts on vehicle maintenance services. • Increase enforcement of traffic laws: Make the roads safer, increase the number of traffic police or use new technologies to enforce traffic laws. • Strengthen the rule of law and increase transparency in the transport sector: Reduce corruption, strengthen the judiciary or increase the transparency of government procurement processes. • Develop disaster preparedness plans for the transport sector: Mitigate the impact of natural disasters, develop early warning systems or disaster recovery plans. • Develop climate change adaptation plans for the transport sector: Reduce the impact of climate change, develop flood-resistant roads or drought-resistant crops.
  • 44. IMPORTANCE OF TRANSPORT ON SUSTAINABLE DEVELOPMENT OF RWANDA • Improve access to markets: A good transport system can help farmers to get their produce to market, which can improve their incomes. It can also help to attract businesses to Rwanda, which can create jobs and boost the economy. • Improve access to education: A good transport system can make it easier for children to get to school, which can help to improve literacy rates and reduce poverty. • Improve access to healthcare: A good transport system can make it easier for people to get to hospitals and clinics, which can help to improve health outcomes and reduce mortality rates. • Reducing poverty and inequality: A good transport system can help to reduce poverty and inequality by making it easier for people to move around and access opportunities. • Promoting tourism: A good transport system can make it easier for tourists to visit Rwanda, which can boost the economy and create jobs. • Enhancing trade: A good transport system can make it easier for Rwanda to trade with other countries, which can boost the economy and create jobs. • Improving safety: A good transport system can help to reduce traffic accidents, which can save lives and reduce injuries. • Protecting the environment: A good transport system can help to reduce greenhouse gas emissions and improve air quality, which is important for Rwanda, which is a signatory to the Paris Agreement on climate change. • Creating jobs: The transport sector is a major employer in Rwanda, and a good transport system can help to create even more jobs. • Improving quality of life: A good transport system can make it easier for people to get around and access opportunities, which can improve their quality of life.
  • 45. COMMUNICATION Introduction Internet is also becoming increasingly important for communication in Rwanda. It is used for a variety of purposes, including social networking, email, and online shopping. The internet has made it easier for people to connect with people from all over the world, and it has also made it easier for people to access information and services. Communication refers to the sharing, exchange or transfer of information, ideas and messages from one place to another. Communication takes place from the sender to the receiver Communication in Rwanda is a complex and ever-evolving process. The country has a rich history of oral communication, which continues to play an important role in everyday life. However, Rwanda has also embraced new technologies, such as mobile phones and the internet, which have had a profound impact on the way Oral communication This has been the primary means of communication in Rwanda for centuries. It is used for everyday tasks, such as exchanging news and information, making decisions, and resolving conflicts. Internet Mobile phones have had a major impact on communication in Rwanda. They are used for a variety of purposes, including making calls, sending text messages, and accessing the internet. Mobile phones have made it easier for people to stay in touch with friends and family, access information, and conduct business Mobile Phones Challenges Despite the progress that has been made, there are still challenges to communication in Rwanda. One challenge is the high illiteracy rate. 43% of adults in Rwanda are illiterate. This makes it difficult for people to access information and services that are available online. Another challenge is the cost of communication. Mobile phone and internet services can be expensive in Rwanda, which can limit access for some
  • 46. MEANS OF COMMUNICATION IN RWANDA 1. RADIO Radio is the most popular form of communication in Rwanda. It is used to broadcast news, music, and other information. The radio passes on information to large masses of people through sound. It is a mass medium since information reaches many people at once. There are several radio stations in Rwanda. They include Flash FM, Radio Rwanda, Isango Star, Radio 10, KT Radio and Magic FM.
  • 47. 2. PRINT MEDIA Print media includes newspapers, magazines, and journals. Newspapers are the most popular form of print media in Rwanda. They are used to report on current events and provide information about the government and other important institutions. Examples of the print media in Rwanda include Business Daily, The NewTimes, Kigali Today, Inyarwanda, imvaho nshya and The News of Rwanda.
  • 48. 3. TELEVISION Television passes information to large masses of people through pictures and sound. It is a mass communication medium. Some of the television stations in Rwanda include RBA Rwanda TV, Family TV, TV 1, Canal+, France 24 and BBC. Television access in the country is limited to urban areas.
  • 49. 4. LETTERS Letters are a traditional form of communication in Rwanda. They are used to send personal messages and to communicate with businesses and government agencies. . Letters are written on paper and addressed to the recipient. They can be sent by post or by hand. Post is the most common way to send letters in Rwanda. There are two main postal services in Rwanda: the Rwandan Post Office and the DHL Express. The Rwandan Post Office is the cheaper option
  • 50. 5. TELEPHONES Telephones are a popular form of communication in Rwanda. They are used to make calls to friends, family, and businesses. This involves sending of messages in form of sound from the sender to the receiver. A recent report by RURA shows that mobile phone penetration was at 78.8 per cent with 9.5 million active subscribers. Beyond calls and text messaging, telephones in Rwanda are used for money transfer, content streaming, advert and connectivity and internet surfing among other purposes.
  • 51. 6. FAX MACHINES Fax machines are used to send documents and other information over the telephone line. Fax machine usage in Rwanda is still relatively common, despite the rise of the internet and email. This is due to a number of factors, including the high cost of internet access and the lack of reliable electricity in many parts of the country. Fax machines are also seen as a more secure way to send documents than email, as they are not as easily intercepted. According to a 2017 report by the Rwanda Utilities Regulatory Authority (RURA), there were an estimated 100,000 fax machines in use in Rwanda.
  • 52. 7. E-MAIL E-mail is a popular form of communication in Rwanda. It is used to send messages and documents to friends, family, and businesses. The use of email in Rwanda is growing rapidly. According to a 2018 report by the Rwanda Utilities Regulatory Authority (RURA), there were an estimated 2.5 million email users in Rwanda, up from 1.5 million in 2016. This growth is being driven by a number of factors, including the increasing availability of internet access, the growing use of smartphones, and the government's efforts to
  • 53. 8. INTERNET The internet is a popular form of communication in Rwanda. It is used to access information, communicate with others, and conduct business. Internet usage in Rwanda has been growing rapidly in recent years. In 2019, there were an estimated 4.25 million internet users in Rwanda, up from 2.5 million in 2016. This growth is being driven by a number of factors, including the increasing availability of internet access, the growing use of smartphones, and the government's efforts to promote digital literacy.
  • 54. FACTORS INFLUENCING THE DEVELOPMENT OF COMMUNICATION IN RWANDA • Terrain: Rwanda's hills and mountains provide ideal locations for transmitters, ensuring that communication signals can reach all parts of the country. • Climate: Rwanda's relatively calm climate helps to protect transmitters and other communication equipment from damage. • Size: Rwanda is small enough that it is easy to establish communication networks that cover the entire country. • Technology: The communication sector in Rwanda uses modern technology, which has helped to improve the quality of communication in the country. • Government policies: The Rwandan government has put in place policies that support the development of Information and Communication Technology (ICT). • Skilled labour: Rwanda has a skilled workforce that is able to support the development of communication. • Peace and stability: Rwanda is a peaceful and politically stable country, which has attracted many investors and boosted the development of communication. • Purchasing power: The improved purchasing power of Rwandan citizens has also helped to boost the development of communication.
  • 55. IMPORTANCE OF COMMUNICATION IN RWANDA 1. Communication promotes education through e-learning, distance, and online learning. • Education is enhanced through the use of communication technologies. • E-learning platforms provide accessible and flexible learning opportunities. • Distance learning allows students to study remotely and access educational resources. 2. Communication improves the effectiveness and efficiency of information exchange. • Sending and receiving information becomes faster and more streamlined. • Communication tools and platforms facilitate efficient information sharing. • Collaborative communication enhances 3. Communication fosters trade and business operations in the country. • Communication enables efficient communication between businesses. • Trade networks are strengthened through effective communication channels. • Business operations benefit from improved communication with customers and partners. 4. Communication facilitates government communication with the public. • Government policies and administrative information can be easily disseminated. • Communication platforms allow for transparent and timely information sharing. • Citizens can stay informed and engaged
  • 56. 5. The internet enables the access of information, knowledge, and ideas on various topics. • The internet provides a vast repository of information and resources. • Knowledge sharing and idea dissemination are made possible through online platforms. • Access to diverse perspectives and global information promotes learning and innovation. 6. The communication sector creates employment opportunities for Rwandan citizens. • Various roles and positions are created within the communication sector. • Job opportunities emerge in telecommunications, media, technology, and related fields. • The growth of the sector contributes to economic development and employment. 7. The government generates revenue from communication companies. • Government levies taxes and fees on communication services. • Revenue is generated from licensing and regulatory processes. • Funds are used for public services and infrastructure development. 8. Communication enables the implementation of regional integration programs. • Communication platforms facilitate coordination and collaboration between regions. • Information sharing supports regional cooperation and development. • Integration initiatives benefit from efficient and effective communication channels. 9. Communication enables the penetration of information to remote areas. • Communication technologies bridge the gap between isolated areas and the rest of the country. • Remote communities gain access to information, services, and opportunities. • Development and progress are extended to previously isolated regions. 10. Communication strengthens social ties within Rwandan society. • Communication tools and platforms connect individuals and communities. • Social networks are expanded, promoting interaction and collaboration. • Communication fosters a sense of belonging and collective identity.
  • 57. TABLE OF THE CHALLENGES AND RECOMMENDED ACTIONS TO THE DEVELOPMENT OF COMMUNICATION IN RWANDA Challenge Recommended Action Lack of capital Increase investment in the communication sector Low technological progress Promote innovation and adoption of new technologies Harsh climatic conditions Strengthen communication infrastructure Natural occurrences Improve the skills of the workforce Shortage of skilled labor Expand access to communication services in rural areas Rural population's limited access Improve the reliability of the power supply Power supply challenges Reduce taxes and operation charges High taxes and operation charges Support local companies
  • 59. OBJECTIVES OF THE LESSON At the end of this lesson, Students will be able to clearly: • Identify the factors that influence trade in Rwanda. • Explain the importance of trade to Rwanda • Identify the problems that affect trade in Rwanda. • Propose solutions to the problems that affect the development of trade in Rwanda.
  • 60. TRADE IN RWANDA Trade is the action of buying and selling goods and services It can be conducted through a variety of channels, including direct sales, retail stores, and online marketplaces. Rwanda's main trading partners are the Democratic Republic of the Congo, Uganda, Kenya, and China. Rwanda imports a variety of goods, including machinery and equipment, steel, cement and construction material, petroleum products, electric equipment, and foodstuffs Rwanda exports a variety of goods, including tea, coffee, coltan, cassiterite, iron ore, animal hides, forest products, and agro-based products. It also exports services, such as tourism.
  • 61. TYPES OF TRADE 1. International trade: This is the exchange of goods and services between countries. 2. Domestic trade: This is the exchange of goods and services within a country. 3. Retail trade: This is the sale of goods to consumers. 4. Wholesale trade: This is the sale of goods to businesses. 5. Service trade: This is the exchange of services, such as transportation, insurance, and consulting.
  • 62. Which type of trade involves the exchange of goods and services between countries? A. International trade B. Domestic trade C. Retail trade D. Wholesale trade • What is the main characteristic of domestic trade? A. It involves the sale of goods to businesses. B. It involves the exchange of goods and services between countries. C. It involves the sale of goods to consumers within a country. D. It involves the exchange of services, such as transportation and insurance. • Wholesale trade is characterized by: A. The sale of goods to consumers. B. The exchange of goods and services between countries. C. The exchange of services, such as transportation and insurance. D. The sale of goods to businesses. • Which type of trade involves the sale of goods to businesses? A. International trade B. Domestic trade C. Retail trade D. Wholesale trade • In which type of trade are services like transportation, insurance, and consulting exchanged? A. International trade B. Domestic trade C. Retail trade D. Service trade
  • 63. IMPORTS AND EXPORTS Imports are goods and services brought into one country from another. They are very important in international trade. The Rwandan government imports goods like petroleum products, textiles, vehicles, machinery, medical equipment, and other goods that it does not produce. Rwanda’s major imports in 2022 Exports are goods and services produced in a country and sold to a foreign country. Rwanda exports goods and services that it produces. They include tea, coffee, and minerals
  • 64. BILATERAL AND MULTILATERAL TRADE • Bilateral trade is trade between two countries. Rwanda engages in bilateral trade with many countries, including Kenya, Uganda, and the Democratic Republic of the Congo. • Multilateral trade is trade between multiple countries. Rwanda engages in multilateral trade through organizations such as the World Trade Organization (WTO) and the East African Community (EAC). 0 20,000 40,000 60,000 80,000 100,000120,000140,000 Kenya Belgium DR Congo Hong Kong Swaziland Switzerland India United Kingdom South Africa Germany China Thailand Italy Singapore United States Sudan Uganda United Arab Emirates Rwanda's exports Value (thousands) in 2019
  • 65. 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 Uganda Kenya South Africa China United Arab Emirates Belgium Tanzania Sweden India Finland Germany France Japan United Kingdom United States Spain Denmark South Korea DR Congo Netherlands Saudi Arabia Egypt Malaysia Israel Malawi Burundi Jordan Singapore Zambia Italy Indonesia Switzerland Sudan Canada Kuwait Rwanda's Imports (thousands) in 2019
  • 66. BALANCE OF TRADE The balance of trade is the difference in value between a country's imports and exports of Goods A positive balance of trade means that a country exports more than it imports. A negative balance of trade means that a country imports more than it exports. Rwanda has a negative balance of trade. This is because the value of its imports is much higher than the value of its exports.
  • 67. What is the balance of trade? A. The difference in value between a country's imports and exports. B. The total value of a country's imports. C. The total value of a country's exports. D. None of the above. 2. What does a positive balance of trade indicate? A. A country exports more than it imports. B. A country imports more than it exports. C. A country has a trade deficit. D. None of the above. 4. Which country has a negative balance of trade? A. Rwanda B. China C. United States D. All of the above. 3. What does a negative balance of trade indicate? A. A country exports more than it imports. B. A country imports more than it exports. C. A country has a trade surplus. D. None of the above. 5. What are the possible implications of a negative balance of trade? A. A country may have to borrow money from other countries to finance its imports B. A country may experience job losses in its export industries. C. A country's currency may lose value. D. All of the above.
  • 68. BALANCE OF PAYMENTS When the balance of trade is positive, it means a country is paid more that it pays outside. The balance of payments is the difference in total value between payments into and out of a country over a given period. When the balance of trade of a country is negative, it means its balance of payment show that the country pays more outside than it is paid.
  • 69. 1. What is the balance of trade? A. The difference in value between a country's imports and exports. B. The total value of a country's imports. C. The total value of a country's exports. D. None of the above. 2. What is the balance of payments? A. The difference in total value between payments into and out of a country over a given period. B. The total value of a country's imports. C. The total value of a country's exports. D. None of the above. 3. What does a positive balance of trade indicate? A. A country exports more than it imports. B. A country imports more than it exports. C. A country has a trade deficit. D. None of the above. than it imports. B. A country imports more than it exports. C. A country has a trade surplus. D. None of the above. 5. What are the possible implications of a negative balance of trade? A. A country may have to borrow money from other countries to finance its imports. B. A country may experience job losses in its export industries. C. A country's currency may lose value. D. All of the above. 6. Which of the following is NOT a factor that can contribute to a negative balance of trade? A. A strong domestic economy. B. A weak foreign economy. C. A high value of the domestic currency. D. A low value of the foreign currency. balance of trade? A. A weak domestic economy. B. A strong foreign economy. C. A low value of the domestic currency. D. A high value of the foreign currency. 8. Which of the following is a government policy that can help to reduce a trade deficit? A. Devaluing the currency. B. Increasing tariffs on imports. C. Reducing taxes on exports. D. All of the above. 9. Which of the following is a government policy that can help to increase a trade surplus? A. Appreciating the currency. B. Decreasing tariffs on imports. C. Increasing taxes on exports. D. None of the above.
  • 70. GROUP DISCUSSION • Group 1: Discuss the factors influencing trade in Rwanda • Group 2: Discuss the positive impact of trade to Rwanda’s Economy and development • Group 3: What are the key factors limiting Rwanda's ability to effectively participate in international trade and expand its market presence? Explain them • Group 4: Propose solutions to these problems affecting development of Trade in Rwanda. • Poor transport and communication • Lack of sufficient information and knowledge • The challenge of being landlocked • High tariffs Group 5: Propose solutions to these problems affecting development of Trade in Rwanda. • Low purchasing capacity: • Foreign laws that affect ability of Rwandan businesses to engage in international
  • 71. FACTORS AFFECTING TRADE IN RWANDA • Transport and Communication: Trade depends on efficient transportation and communication. Goods and services need to be transported from production areas to markets. • Availability of Markets: Trade requires a ready market for buying and selling goods and services. Markets play a crucial role in completing the production process. • Adequate Labour Force: Rwanda has a steady supply of skilled and unskilled labor. Workers contribute to various trading activities in companies and enterprises. • Favourable Government Policies: Rwandan government designs policies to develop and strengthen trade. The Rwandan Development Board (RDB) creates an enabling environment for local and foreign investors. • Political Stability: Investors prefer politically stable countries for investment. Assurance of peace and safety of facilities attract trade investments. • Presence of Entrepreneurs: Many Rwandans possess entrepreneurial skills and seek to practice entrepreneurship. Entrepreneurial spirit contributes to trade development in the country. • Regional Integration: Rwanda's membership in regional blocs like the East Africa Community (EAC) and COMESA promotes trade. Integration initiatives encourage both internal and international trade. • Establishment of Industries: Government eases investment policies to support the establishment of industries. Entrepreneur-friendly policies attract industry development. • Favourable Climatic Conditions: Rwanda's climate supports industrial development. Suitable conditions contribute to trade growth in various sectors.
  • 72. IMPORTANCE OF TRADE IN RWANDA • Trade provides the government with revenue. The government of Rwanda earns revenue through taxes levied on trade establishments. • Trade creates employment opportunities. Trade has created employment opportunities to a number of people in Rwanda. • Trade stimulates economic growth. Trade has stimulated the growth and development of various towns like Kigali, Rwamagana, Kayonza, and Musanze. • International trade is a source of foreign exchange. International trade is a source of foreign exchange through exports. • Trade influences the development of infrastructure. Trade has influenced both the government and the private sector to establish infrastructure such as roads. • Trade improves the livelihood of the people. Trade improves the livelihood of the people by providing a source of income to the traders. • International trade promotes international relationships. International trade promotes international relationship between Rwanda and her trading partners. • Trade facilitates sustainable utilization of resources. Trade has facilitated sustainable utilization of the available resources. • Trade influences the development of industries. Trade has influenced the development of various industries in the country.
  • 73. PROBLEMS AFFECTING TRADE IN RWANDA • Poor transport and communication: Inadequate road infrastructure, especially in rural areas, hinders the smooth movement of goods and increases transportation costs. • Lack of sufficient information and knowledge: Insufficient understanding of market requirements and trends limits Rwanda's ability to effectively participate in international trade. • The challenge of being landlocked: Rwanda's lack of direct access to seaports poses difficulties and additional costs in transporting goods to and from international markets. • High tariffs: The imposition of high taxes on imported and exported goods makes the pricing of products less competitive in the market. • Inadequate capital: Limited access to capital restricts the growth and sustainability of businesses in Rwanda. • Stiff competition: Rwandan traders face fierce competition from international competitors, which can make it challenging to penetrate and thrive in foreign markets. • Low purchasing capacity: The low purchasing power of both domestic and foreign consumers affects the demand for goods, both locally produced and imported. • Foreign laws: Laws enacted by other countries may create barriers or unfavourable conditions for Rwandan businesses, affecting their ability to engage in international trade. • Instability in neighbouring countries: Political instability in neighbouring countries can create uncertainties and risks for Rwandan traders. • Production of similar goods by neighbouring countries: Competing with neighbouring countries that produce similar goods can lead to intense competition in regional markets.
  • 74. SOLUTIONS TO PROBLEMS AFFECTING TRADE IN RWANDA
  • 75. POOR TRANSPORT AND COMMUNICATION • Invest in infrastructure, such as roads, railways, and airports. • Partner with neighbouring countries to improve regional transportation and communication networks. • Use technology to improve communication and coordination between businesses and government agencies. Road network in Africa Rail way
  • 76. LACK OF SUFFICIENT INFORMATION AND KNOWLEDGE • Provide businesses with access to market research and data. • Create training programs to help businesses develop the skills they need to compete in international markets. • Promote trade missions and other events that allow businesses to connect with potential buyers and partners. Momo pay
  • 77. THE CHALLENGE OF BEING LANDLOCKED • Partner with neighbouring countries to develop regional trade agreements. • Invest in logistics and warehousing facilities to reduce transportation costs. • Develop value-added products that can command a higher price in international markets. EAC Member countries
  • 78. HIGH TARIFFS • Negotiate trade agreements with other countries to reduce or eliminate tariffs. • Develop value-added products that can command a higher price in international markets, even with tariffs. • Focus on export markets where tariffs are lower. African Continental Free Trade Agreement Value Added Coffee
  • 79. Map of Africa indicating COMESA membership Former members Current members Map of Africa indicating SADC (light green) and SADC+SACU (dark green) members.
  • 80. INADEQUATE CAPITAL • Provide businesses with access to loans and other forms of financing. • Create a favourable investment climate to attract foreign investment. • Encourage businesses to form partnerships with larger, more established companies.
  • 81. STIFF COMPETITION • Focus on niche markets where Rwandan businesses can compete effectively. • Develop innovative products and services that offer a unique value proposition. • Invest in marketing and branding to build brand awareness and loyalty.
  • 82. LOW PURCHASING CAPACITY • Focus on markets with growing middle classes. • Develop products and services that are affordable for a wide range of consumers. • Partner with retailers and distributors to reach a wider audience.
  • 83. INSTABILITY IN NEIGHBOURING COUNTRIES • Monitor the political situation in neighboring countries closely. • Develop contingency plans in case of instability. Invest in insurance to protect against losses due to political instability.
  • 84. PRODUCTION OF SIMILAR GOODS BY NEIGHBORING COUNTRIES • Focus on developing products and services that are unique to Rwanda. • Invest in marketing and branding to differentiate Rwandan products from those of neighbouring countries. • Form partnerships with businesses in other countries to help market and distribute Rwandan products.

Editor's Notes

  1. Poor road infrastructure The government could invest in road infrastructure by repairing and upgrading existing roads, and by building new roads in rural areas. The government could also work with the private sector to develop public-private partnerships for road construction and maintenance. The government could also promote the use of alternative modes of transportation, such as bicycles and motorcycles, which can help to reduce traffic congestion. Lack of public transportation The government could develop a more comprehensive public transportation system, which would make it easier for people to get around without a car. The government could also provide subsidies for public transportation, which would make it more affordable for people to use. The government could also work with the private sector to develop new public transportation options, such as buses, trains, and trams. High cost of transportation The government could provide subsidies for transportation, which would make it more affordable for people to use. The government could also work with the private sector to develop new transportation options that are more affordable, such as shared rides and ride-hailing services. Inadequate air transportation The government could build new airports or expand existing airports. The government could also work with the private sector to develop new air transportation options, such as low-cost airlines. Poor traffic management The government could improve traffic management by building new roads, by improving public transportation, or by enforcing traffic laws more strictly. The government could also work with the private sector to develop new traffic management technologies, such as smart traffic lights and congestion pricing. Unskilled drivers The government could provide driver training programs, which would help to improve driver skills and make the roads safer. The government could also work with the private sector to develop new driver training programs, such as online driver education courses. Poor vehicle maintenance The government could provide vehicle maintenance programs, which would help to improve vehicle maintenance and make the roads safer. The government could also work with the private sector to develop new vehicle maintenance programs, such as mobile car repair services. Lack of enforcement of traffic laws The government could increase enforcement of traffic laws, which would help to make the roads safer. The government could also work with the private sector to develop new traffic law enforcement technologies, such as automated speed cameras and red light cameras. Corruption The government could strengthen the rule of law and increase transparency in the transport sector, which would help to reduce corruption. The government could also work with the private sector to develop new anti-corruption measures, such as whistleblowing hotlines and corruption reporting mechanisms. Natural disasters The government could develop disaster preparedness plans for the transport sector, which would help to mitigate the impact of natural disasters. The government could also work with the private sector to develop new disaster preparedness technologies, such as early warning systems and disaster recovery plans. Climate change The government could develop climate change adaptation plans for the transport sector, which would help to reduce the impact of climate change. The government could also work with the private sector to develop new climate change adaptation technologies, such as flood-resistant roads and drought-resistant crops.
  2. https://www.countryaah.com/rwanda-major-trade-partners/
  3. The balance of trade is the difference between a country's: Imports and exports of goods Imports and exports of goods and services Exports and imports of financial capital Exports and imports of financial transfers The balance of payments is a broader measure than the balance of trade because it includes: All international financial transactions Only trade in goods and services Only financial capital transactions Only financial transfers The balance of payments can be in: Surplus, deficit, or equilibrium Surplus or deficit only Equilibrium or deficit only Equilibrium only A country can have a trade deficit and a balance of payments surplus if it: Imports more goods than it exports, but exports more services than it imports Imports more goods and services than it exports, but receives more foreign investment than it sends abroad Imports more goods and services than it exports, but sends more foreign investment abroad Exports more goods and services than it imports, but receives less foreign investment than it sends abroad The balance of trade and the balance of payments are both important economic indicators, but they should not be interpreted in isolation because: They measure different things They are not always accurate They can be manipulated by governments All of the above Which of the following is not a component of the balance of payments? Trade in goods Trade in services Financial capital transactions Financial transfers Which of the following is a financial capital transaction? A country imports a car from another country A company in one country invests in a company in another country A country sends money to another country as foreign aid A country receives money from another country as foreign aid Which of the following is a financial transfer? A country imports a car from another country A company in one country invests in a company in another country A country sends money to another country as foreign aid A country receives money from another country as foreign aid Which of the following is a possible outcome of a trade deficit? The country's currency will appreciate The country's currency will depreciate The country's interest rates will increase The country's interest rates will decrease Which of the following is a possible outcome of a balance of payments surplus? The country's currency will appreciate The country's currency will depreciate The country's interest rates will increase The country's interest rates will decrease
  4. What is one of the key challenges faced by Rwanda in international trade due to inadequate road infrastructure? a) High tariffs b) Lack of sufficient information and knowledge c) Poor transport and communication d) Stiff competition   Which factor limits Rwanda's ability to effectively participate in international trade by hindering its understanding of market requirements and trends? a) Lack of sufficient information and knowledge b) Stiff competition c) Inadequate capital d) Low purchasing capacity   What is a major challenge for Rwanda in international trade due to its lack of direct access to seaports? a) High tariffs b) Inadequate capital c) The challenge of being landlocked d) Foreign laws   What does the imposition of high taxes on imported and exported goods in Rwanda lead to? a) Poor transport and communication b) Inadequate capital c) High tariffs d) Stiff competition   What factor restricts the growth and sustainability of businesses in Rwanda due to limited access? a) Lack of sufficient information and knowledge b) Instability in neighbouring countries c) Inadequate capital d) Production of similar goods by neighbouring countries   What challenge do Rwandan traders face in foreign markets due to competition from international competitors? a) Stiff competition b) Low purchasing capacity c) Foreign laws d) The challenge of being landlocked   What factor affects the demand for goods in Rwanda due to the low purchasing power of consumers? a) High tariffs b) Lack of sufficient information and knowledge c) Low purchasing capacity d) Instability in neighbouring countries   What can create uncertainties and risks for Rwandan traders in international trade? a) Poor transport and communication b) Inadequate capital c) Instability in neighbouring countries d) Production of similar goods by neighbouring countries   What can lead to intense competition in regional markets for Rwandan traders? a) Lack of sufficient information and knowledge b) The challenge of being landlocked c) Production of similar goods by neighbouring countries d) Stiff competition   What does inadequate road infrastructure in rural areas hinder in Rwanda's international trade? a) Low purchasing capacity b) Poor transport and communication c) Foreign laws d) Lack of sufficient information and knowledge
  5. Rwanda is known for its coffee. Rwanda could develop a value-added product by roasting and packaging its coffee beans in Rwanda. This would add value to the product and would make it more appealing to consumers.