To return any sense of normalcy to Rwanda’s horticulture export, the volumes of weekly exports will have to rise from a current capacity of 30-35 tonnes to between 80-100 tonnes, as was the case prior to the COVID-19 pandemic.
Following weeks of slow business activity -resulting from the measures to curb the spread of the virus- stakeholders in horticulture exports say that recapturing markets, maintaining volumes and client relations are among the priorities.
According to the Economic Recovery Plan Blueprint, since the COVID 19 outbreak, weekly volume of exports had dropped to 30-34 tonnes, but was optimistic that it would pick up in coming days.
Among the ongoing interventions is working with the national carrier, RwandAir to deliver goods to some markets in Europe which has allowed producers maintain delivery of fresh produce to a number of markets in Europe.
The economic recovery blueprint noted plans include securing more flights weekly to Europe at subsidized airfreight rates to allow exporters maintain volumes.
“Government support will be needed to secure more weekly flights to Europe at a subsidized airfreight rate. Currently, prices at destination markets are falling, but airfreight prices are increasing due to the COVID-19 lockdown. However, consistent ability of exporters to commit volumes to export weekly is the factor in attracting affordable cargo rates,” the blueprint reads in part.
Currently, the cost of airfreight has been said to be high by exporters standing at $1.8 per kg compared to $1.4 before the pandemic.
Andre Ndikumana, the acting Chief Executive of NAEB, said that there are engagements with the airline to access ways to reduce the costs to improve the competitiveness of the exports and improve returns of producers. He added that currently, they operate three weekly flights to Europe, two RwandAir and one by Ethiopian Airlines.
Beyond working with RwandAir to reduce cost of airfreight, NAEB is also engaging them to open up more destinations which have a demand for fresh produce, such as Dubai, China and South Africa.
Source: newtimes.co.rw
