Exporters to the Middle East have welcomed the resumption of flights by national carrier RwandAir to Dubai and Doha, saying it offers hope for recovery after months of disruption caused by regional conflict.
RwandAir said it resumed flights on June 1 after almost three months of suspension due to security concerns linked to the conflict involving Iran, Israel and the United States.
ALSO READ: RwandAir set to resume Dubai, Doha flights
The suspension particularly affected horticulture exporters, especially avocado exporters who depend on the Gulf markets.
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Shamim Mutesi, Managing Director of Selly Faith Ltd, said the return of flights will help exporters gradually regain access to key markets.
"We thank the country's leadership for supporting the resumption of these flights. Most of our fruit exports go to the Middle East, especially Dubai, and the flights are helping us resume exports," she said.
According to Mutesi, avocados accumulated on farms during the suspension period because exporters could not access their usual markets.
ALSO READ: Suspension of RwandAir flights to Middle East continues
"Some produce was wasted on farms. We hope the losses will start to decrease following the resumption of flights," she said.
Before flights were disrupted, the company exported about 20 tonnes of avocados every week. That dramatically dropped when the war started.
Although flights have resumed, Mutesi noted that transport costs remain a major challenge. "Freight costs increased from about $1.1 per kilogram before the conflict to around $1.8 per kilogram today."
Concerns over market access
Theogene Twahirwa, an avocado farmer and exporter based in Rulindo District, said exporters are still uncertain whether their former customers remain active in the region.
ALSO READ: Govt seeks new markets as Middle East disruptions hit exporters
"We are wondering whether our existing customers will keep buying our products. The war led to displacement, with many people leaving the Middle East at the height of the crisis," he noted.
Twahirwa said higher freight costs are making exports less viable.
Before the crisis, Twahirwa exported about five tonnes of avocados twice a month. Since exports stopped, he has been selling the produce on the local market at around Rwf50 per avocado.
"We tried to find alternative markets, but it has not been easy," he added.
Higher costs, limited cargo space
Ahmed Elrefay, Managing Director of Sunbird Trade Ltd, said exporters lost a significant share of their market during flight suspension.
"We lost a big portion of the market because we could not supply customers. When airlines resumed operations, freight rates increased significantly, while buyers continued demanding lower prices," he said.
According to Elrefay, exporters also struggled to secure cargo space despite having confirmed orders.
"There were weeks when I had orders of up to 10 tonnes, but I could only ship four or five tonnes because space was unavailable. This affected product quality and customer satisfaction," he said.
Exporters of horticulture products from Rwanda mainly rely on air transport.
"If airlines charge more, we cannot compete with exporters from countries such as Kenya and Uganda. In some cases, we had to absorb the additional transport costs ourselves just to retain customers," he said, adding that exporters are struggling to secure alternative markets.
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Government intervention
Claude Bizimana, Chief Executive Officer of the National Agricultural Export Development Board (NAEB), said the agency is working to support exporters.
"NAEB is engaging buyers and other stakeholders to help cushion exporters from the impact of increased transport costs," he said.
The recent disruptions, he added, have highlighted the need for Rwanda to invest more in value addition.
"The crisis showed us the importance of increasing value addition. We are seeing interest in activities such as avocado oil production, which can help generate higher export revenues," Bizimana said.
He also encouraged exporters serving lower value markets to cooperate with those accessing premium markets to improve returns and maintain competitiveness.
