Total Project Cost
Investment Required
Stakeholders
Countries
Project Overview
Description
Development of inland water transport infrastructure and services along the Akagera River to improve regional connectivity between Rwanda, Tanzania, and Uganda. The project involves river navigation improvements, construction of port facilities, acquisition of suitable vessels, and establishment of a sustainable operational framework. This environmentally friendly transport alternative will connect Lake Victoria to regions along the Akagera River, providing cost-effective transportation for both passengers and freight while reducing pressure on road infrastructure.
Objectives
Develop sustainable inland water transport infrastructure along the Akagera River as an alternative and complementary mode to road transport; establish regular and reliable passenger and cargo services connecting communities along the river and to Lake Victoria; reduce transportation costs and improve efficiency for agricultural products and other goods from riverine areas; improve cross-border connectivity and trade facilitation between Rwanda, Tanzania, and Uganda; enhance environmental sustainability through promotion of low-carbon water transport; reduce pressure and maintenance costs on regional road networks; create employment opportunities in river transport operations and related sectors; and support tourism development along the Akagera River basin.
Strategic Importance
The Akagera River Transport project represents a strategic initiative to diversify transportation options in the East African region while promoting more sustainable mobility solutions. As road infrastructure faces increasing congestion and maintenance challenges, inland water transport offers a complementary mode with lower environmental impact and potentially lower costs for bulk goods. The project directly supports East African Community (EAC) regional integration objectives by enhancing cross-border connectivity and trade facilitation. From an environmental perspective, water transport generates significantly lower carbon emissions per ton-kilometer than road transport, supporting climate change mitigation goals. The project further contributes to inclusive development by connecting previously isolated riverside communities to regional economic networks, providing access to markets and services. Additionally, the project supports sustainable tourism development in the ecologically significant Akagera basin, creating opportunities for economic diversification.
Technical Specifications
Technology & Design
The project will employ appropriate river transport technologies suited to the specific conditions of the Akagera River, which has varying depths and flow conditions across seasons. Key design elements include shallow-draft vessels, modular port facilities adaptable to water level variations, appropriate navigation aids, and environmentally sensitive river training works where necessary.
Capacity & Size
The river transport system will serve communities along approximately 320 km of navigable sections of the Akagera River, with connections to Lake Victoria. Infrastructure will include: 5 major port facilities at key population centers; 8 smaller landing facilities; Acquisition of 4-6 multi-purpose passenger-cargo vessels; 4-6 smaller vessels for tributary services; Navigation aids and safety systems throughout navigable sections
Technical Details
River navigation improvements including selective dredging, rock removal, and environmentally sensitive river training works; Port facilities with floating pontoons to accommodate seasonal water level variations; Multi-purpose vessels designed for shallow-draft river conditions (drawing less than 1.2m); Solar power systems for port facilities; Navigation aids and communication systems compliant with inland waterway standards; Digital booking and cargo management systems; Safety and emergency response equipment
Development, Implementation & Financial Details
Development Timeline
Feasibility studies (2022-2024); Detailed design and financing arrangements (2024-2026); Implementation (2026-2030); Phased operational launch (2028-2030)
Latest Implementation Updates
UPDATEDFinancing Structure
The project will utilize a blended financing approach combining: concessional loans from multilateral development banks (AfDB, World Bank); climate finance targeting low-carbon transport components; grants for environmental management aspects; national government contributions from participating countries; and potential private sector participation in vessel operations. Technical assistance grants will support project preparation and capacity building.
Capital Structure
Base infrastructure (70%): Public financing through sovereign loans with climate finance components; Vessels and operations (30%): Mixed public-private financing with potential management contracts or PPP arrangements
Project Timeline
Start Date
January 2022
Expected Completion
December 2030
Development Timeline
Feasibility studies (2022-2024); Detailed design and financing arrangements (2024-2026); Implementation (2026-2030); Phased operational launch (2028-2030)
Project Status History
Status 2020
Project Definition
Status 2022
Pre-Feasibility
Status 2024
Feasibility
Additional Project Details
Preparation Funding Gap
USD 4.30M
Construction Timeline
Phase 1 (River navigation improvements and initial port facilities): 2026-2028; Phase 2 (Additional port facilities and vessel acquisition): 2027-2029; Phase 3 (Complementary infrastructure and advanced systems): 2028-2030
Legal & Financial Advisors
Multiconsult ASA providing technical advisory services; financial advisory services pending
Market Analysis
Market Analysis
Market analysis indicates significant potential for both passenger and freight transport along the Akagera corridor. Approximately 350,000 people live within 5km of the river with regular mobility needs. Current freight in the corridor (primarily using road transport) includes agricultural products (estimated at 180,000 tons annually), construction materials, consumer goods, and potential for tourism development. Origin-destination studies indicate latent demand constrained by current transport limitations and costs. As the primary river flowing into Lake Victoria from the east, the Akagera offers strategic connectivity potential to the broader East African lake transport network.
Market Demand
The river transport system will be designed to serve approximately 500,000 passengers annually and handle up to 250,000 tons of cargo when fully operational. Service frequencies will vary by section based on demand, with more frequent services in populated areas and scheduled services for more remote sections. The system will connect multiple riverside communities to regional economic centers and link with Lake Victoria transport networks.
Key Stakeholders
Project Sponsor
East African Community (EAC)
Key Parties
East African Community (EAC) Secretariat, Rwanda Transport Development Agency, Tanzania Ports Authority, Uganda Ministry of Works and Transport, Lake Victoria Basin Commission
Investors
African Development Bank, World Bank, Global Environment Facility, Nordic Development Fund
Contractors & Operators
To be determined through competitive bidding following project structuring and financing
Risk Assessment
General Risk Assessment
Key risks include: seasonal water level variations affecting navigation reliability; environmental sensitivity of the Akagera River ecosystem; technical capacity limitations for inland waterway operations; coordination requirements across three countries; competing transport modes (particularly road transport); and potential challenges in achieving commercial viability in early operational phases. Risk mitigation strategies include adaptive vessel design for varying conditions, comprehensive environmental management, phased implementation, cross-subsidization of services, and technical assistance for capacity building.
Regulatory Risks
Requires development of harmonized inland waterway regulations, safety standards, and operational protocols across three countries. An Akagera River Basin Management Authority is proposed to coordinate water resource management and navigation aspects. Key regulatory risks include challenges in establishing consistent enforcement mechanisms, implementing appropriate tariff structures, and maintaining service obligations to smaller communities with lower commercial viability.
Impact Assessment
Environmental Impact
The project will require a comprehensive Environmental and Social Impact Assessment given the ecological significance of the Akagera River basin, which includes protected areas and sensitive habitats. Key environmental considerations include: impacts on aquatic ecosystems during navigation improvements; water quality protection; riverbank erosion management; potential for invasive species; and ecological flow maintenance. Environmental enhancement components will be integrated, including wetland restoration projects, water quality monitoring systems, and eco-tourism development with conservation objectives.
Social Impact
The river transport system will connect approximately 350,000 people living within 5km of the river to regional economic networks, improving access to markets and services. Specific benefits include: reduced transport costs for agricultural producers (15-20% savings projected); improved access to healthcare and education; new economic opportunities in riverside communities; employment creation in transport operations and related services; and support for cultural exchange and social cohesion across borders. Inclusive development measures will ensure services are accessible to vulnerable populations through appropriate pricing policies and accessibility features.
Investment Opportunities
Private Sector Opportunities
Private sector opportunities include vessel operations (through management contracts or direct investment), port terminal operations, logistics services, maintenance services, and tourism-related activities integrated with water transport. The operational framework will include specific mechanisms for structured private sector participation while ensuring public service obligations are maintained.
Next Steps & Agreements
Next Steps
Complete comprehensive feasibility studies; secure technical assistance funding for detailed designs; develop operational framework; finalize environmental and social impact assessments; secure financing commitments; establish regional implementation unit
Offtake Agreements
Service level agreements will be established for vessel operations with minimum service frequencies, safety standards, maintenance requirements, and performance metrics. For any private sector involvement, structured agreements will ensure public service obligations to smaller communities are maintained while allowing commercial viability in higher-demand sections.
Contact Information
Dr. Emmanuel Kamanzi, Director of Transport, EAC Secretariat, Email: transport@eac.int, Tel: +255-27-2162100; Eng. Marie-Claire Murekatete, Rwanda Transport Development Agency, Email: info@rtda.gov.rw; Lake Victoria Basin Commission, Email: lvbc@lvbcom.org
