Airports On The Agenda Again

Once again the Rwandan government has stated that airport construction will be a key priority in 2013. Aired live on national radio and TV, Prime Minister Pierre Habumuremyi said that the two airports in Huye and Kamembe would be rehabilitated. He also made repeated calls for the private sector to participate in this venture.

However, this is not the first time these pledges have been made. We are still waiting for the Bugesera International Airport to take off (a tender was due to be realised in November 2010) and for the modernisation and expansion programme at the existing Kigali International Airport (promised in 2011) to be fully implemented.

Growth Spurs Airport Potential
Real GDP growth, % change y-o-y

We do not question the need for both improved and expanding facilities, especially on the back of strong economic growth (we are forecasting real GDP growth of 7% in 2013), in addition to a nascent tourism sector (with a 29% increase in passenger numbers seen at Kigali International in 2011, according to Rwanda Civil Authority).

However, we highlight that long delays are one of many hurdles these projects face - especially on the back of a decision to decrease international aid, which makes up almost 15% of government revenue. Overall, we believe there is considerable potential for airport construction in Rwanda; however, for successful implementation, it is important that they do not require much state support, as there is likely to be little there.

This article is tagged to:
Sector: Infrastructure
Geography: Rwanda, Rwanda, Rwanda, Rwanda, Rwanda, Rwanda

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