Petroleum Imports Dominate Rwanda’s 2024 Trade Bill as Nation Shifts Toward Greener Transport Solutions
Kigali, The Gulf Observer: Petroleum oils once again topped Rwanda’s list of most imported products in 2024, accounting for a significant 28.4% of the country’s total merchandise import bill, which exceeded $6.88 billion, according to the newly released Trade and Industry Performance 2024 report.
The East African nation imported 816,000 tonnes of petroleum oils valued at $680 million (equivalent to over Rwf980 billion), marking a 9.5% increase from $621 million in 2023. This made petroleum products the single largest import category, reflecting Rwanda’s continued reliance on foreign fuel supplies.
Speaking to The New Times, Minister of Trade and Industry Prudence Sebahizi explained that petroleum remains crucial to national infrastructure. “Petroleum products are essential for powering transport, aviation, and industrial activities,” he stated. “As the economy grows and demand for transport and energy increases, so does the need for petroleum products.”
Reducing Dependency: A National Priority
Despite this heavy reliance on imported fuel, the government has reaffirmed its strategic commitment to gradually reducing dependency on petroleum products. Minister Sebahizi underscored efforts to transition toward cleaner energy alternatives.
“We are promoting sustainable energy solutions, including investments in renewable energy, the adoption of electric mobility, and enhancing energy efficiency across sectors,” he said. “These measures aim to reduce long-term fuel demand, enhance energy security, and protect the environment.”
Electric Mobility at the Forefront
A key pillar of Rwanda’s energy transition is the promotion of electric vehicles (EVs). The minister highlighted that EVs offer a viable path to curbing fuel consumption, especially in cities.
“As more electric buses, motorcycles, and cars enter the Rwandan market, demand for petroleum-based fuels will gradually fall,” Sebahizi said. “This shift will help us cut import costs, reduce urban air pollution, and advance environmental sustainability.”
The country’s strategic ambition is supported by the Strategic Paper on Electric Mobility Adaptation, published in April 2021 by the Ministry of Infrastructure, which identifies the transport sector as a major contributor to greenhouse gas emissions and urban air pollution. The document warns that rising fuel-dependent transport exacerbates the trade deficit and exposes Rwanda’s economy to the volatility of global oil prices.
It outlines the long-term advantages of electric mobility, including:
- Up to 50% lower maintenance costs compared to internal combustion engine (ICE) vehicles
- Significant reduction in harmful emissions and pollution
- Improved national energy independence by reducing reliance on imported fossil fuels
Policy Support for a Cleaner Future
To accelerate this transition, Rwanda revised its tax policy on hybrid vehicles in May 2024, with the aim of incentivising pure electric vehicle adoption, according to the Ministry of Finance and Economic Planning. The revised framework seeks to make eco-friendly transportation more accessible and financially attractive to both individual and commercial users.
These efforts align with Rwanda’s broader ambition to build a green and sustainable economy, in line with the goals outlined in Vision 2050 and the country’s Nationally Determined Contributions (NDCs) under the Paris Agreement.
Looking Ahead
While petroleum imports remain central to Rwanda’s economy in the short term, the government’s forward-looking policies reflect a strong commitment to shifting toward cleaner, sustainable alternatives.
“Transitioning to electric mobility is not just an environmental decision,” Minister Sebahizi concluded. “It is an economic and strategic necessity for Rwanda’s long-term growth, stability, and resilience.”
As Rwanda navigates a path toward energy independence, its focus on innovation, sustainability, and policy reform may well position it as a leader in green mobility across the African continent.
