The market will be located in the Masoro industrial zone, covering 10.8 hectares, and is expected to play a pivotal role in Rwanda's agricultural sector. NAEB confirmed that 99% of the compensation process for land acquisition has been completed, clearing the way for construction to begin.
Claude Bizimana, Chief Executive Officer of NAEB, revealed this on Thursday during a meeting with Parliament's Committee on Governance and Gender Affairs, where he presented NAEB's 2024/2025 report and outlined plans for the 2025/2026 fiscal year.
In his presentation, Bizimana highlighted NAEB's efforts to enhance market efficiency and transparency. He explained that the Kigali Wholesale Market for Fresh Produce (KWMFP) is designed to improve food quality, streamline post-harvest handling, and facilitate better transportation of fruits and vegetables.
The project will be executed in two phases. The first phase will focus on building the market's core infrastructure, while the second will promote value addition through processing and quality enhancement of produce.
The total cost of $53.4 million will be shared between the Rwandan government and international partners. The government will cover 50% of the cost through a loan from the OPEC Fund for International Development, while the Netherlands will provide the remaining 50% as a grant.
'A new feasibility study estimates the total construction cost at 47.5 million euros (53.4 million USD). The Rwandan government will fund half of this through the OPEC Fund loan, and the Netherlands will provide the remaining half as a grant,' Bizimana explained.
He added that teams from the OPEC Fund and the Netherlands are scheduled to arrive in February to finalise agreements, after which construction will officially commence.
Bizimana also discussed the current challenges facing Kigali's fruit and vegetable market, including inadequate facilities, inconsistent pricing, and the absence of organised trading systems.
Currently, about 86% of fruits and vegetables sold in Kigali pass through the Nyabugogo Market, known as Kwa Mutangana, which has been criticised for poor sanitation and inefficiency.
'Looking at Kwa Mutangana, it's clear that the market does not meet the standards required for food security and proper market management,' Bizimana said. 'This new market project will help address these issues and bring about positive change.'
The lack of organized market infrastructure has led to significant produce losses, with up to 40% of fruits and vegetables wasted annually due to poor handling and storage. This also poses challenges for Rwandan exporters, who struggle to meet international quality standards.
The new market is expected to reduce these losses by providing improved storage, packaging, and transportation facilities, ensuring that produce maintains its quality throughout the supply chain. It will also support farmers by introducing a transparent pricing system connected to both local and export markets through electronic payment solutions.
Furthermore, the market will encourage value addition by promoting the processing of agricultural products, boosting Rwanda's export-oriented economy. Modern infrastructure will cater to growing demand for high-quality produce from domestic and international consumers alike.
Bizimana concluded by emphasising that the project will not only benefit Rwanda's agricultural sector but also contribute to economic growth by creating business opportunities and strengthening trade relationships regionally and internationally.
IGIHE
Source : https://en.igihe.com/news/article/rwanda-to-build-rwf-77-2b-modern-fruit-and-vegetable-market
