Kigali Wholesale Market
Funder: Government of Rwanda
In realization of the revolutionary economic potential of the horticulture sector, the Rwandan Government channeled substantial resources into increasing productivity of the sector. However, this was not matched with commensurate attention to marketing of the high value crops. Although there is adequate demand for fresh fruits and vegetables in Kigali and other urban areas of Rwanda, markets are highly unorganized. In addition, farmers are not only unaware of such markets, but they also do not have the necessary post-harvest handling techniques to curb post-harvest losses and maintain the high quality of produce required in these markets.
To overcome these problems, Rwanda Horticulture Development Authority with support from Kilimo Trust is rolling out plans to develop the Kigali Wholesale Market for Fresh Produce. The market will serve to reduce postharvest losses, allow value addition, and act as an aggregation hub to catalyze supply to both local and regional markets in neighbouring countries of Tanzania, Uganda, Burundi, and the Democratic Republic of Congo at competitive prices. As a result, lower prices fresh fruits and vegetables should be expected from improved efficiency of the value chains supply chain and reduced postharvest losses.
A new 10,000m2 facility is planned on a 20 Ha piece of land located at Kabuga, Masaka district in Kigali City. By 2030 the site is planned to handle over 300,000 MT of fresh produce each year based on current demand which is projected to increase. The project will create up to 2,000 jobs directly and indirectly and will be managed under a Public-Private Partnership (PPP) arrangement. Based on preliminary financial analysis, market rents inclusive of service charges will be approximately US$ 12 per square meter per month rising at 5% per year in real terms as traders’ profitability and ability to pay improves. Additional costs will include optional services such as value adding using cold storage and banana ripening facilities. The total cost of the project is estimated at US$ 31.4 million. Potential profits to small and medium enterprises, suppliers, traders, and consumers among other indirect benefits justifies the investment.
A joint technical team comprising civil and architectural engineers, agribusiness professionals and marketers from NAEB, the government of Rwanda and Kilimo Trust (KT) has been tasked to develop a comprehensive business plan for the project which upon completion will enable the Government of Rwanda to invest.