The RSE registered a market turnover of RWF 305m compared to RWF 35m last week. Most of the activity was on Bank of Kigali (BOK) which generated 98% of the turnover. Bralirwa (BLR) contributed to the turnover by 2%. BOK closed at RWF 130, a decrease of 2.3% from last week’s closing price and BLR closed at RWF 314, an increase of 3%. KCB and NMG prices remained unchanged from last week’s closing price as no trades were recorded on their respective counters.
High costs of production and logistics services are hurting investors by reducing profit margins while leading to an increase in prices on the market. Investors argue that high energy, taxation and land cost as well as transport charges, especially for importing raw materials are impacting heavily on the amount of operational capital. Mounir Bakhressa, the Managing Director of Bakhressa Milling Industry noted that the aspect of land is challenging as they don’t have enough land to grow wheat to cater for the high demand on the market thus the industry is heavily dependent on wheat imported from Tanzania which is affected by high transport costs. Statistics show that transport costs account for 40% of the total value of imports to the country. The Minister of Trade and Industry, Francois Kanimba, noted that government is developing means of addressing these trade barriers by helping local industries to access cheaper imports from the East African Community region. The Ministry with the support of the World Bank group is conducting a study for the development of a logistics and distribution services strategy for Rwanda aimed at developing a viable trade logistics industry. The study, according to experts, will define establishment of agro centres to host added-value logistics services for agro-exports, regional distribution centres and an air cargo centre to support development of an air cargo hub which are the country’s potential market segments in logistics and distribution.
Source: African Alliance