Africa-Press – Rwanda. Some government projects are on the verge of becoming white elephant as district official shift attention to stopping the spread of Covid-19. Several projects that were initiated by districts to enhance development, revenue collection and spur employment creation on the verge of collapse after recording losses for almost two years.
Many district’s investments in modern markets, beach resorts, guest houses, and others already grapping with low occupancy rates or struggled to stay afloat by the time the pandemic struck in March last year.
Their situation worsened as they suffered closures under general and localized lockdowns, in addition to other virus protocols that left them deserted or only operating at reduced capacity.
For instance, Rwanda Today learnt that the Rwf654.4 million Burera Beach Resort in northern Burera District lies idle since its completion in December 2017, while similar facilities in other districts suffered pandemic-induced losses that sent authorities and contracted managers back to the drawing board.
“The Beach is still under privatization process. The latest information is that the bid analysis is underway at Rwanda Development Board. It’s until a manager comes on board that recovery strategies and prospects of putting the facility to profitable use will be discussed and see how we can support as a district,” Joseph Munyaneza, Burera district vice mayor in charge of economic affairs, told Rwanda Today.
ADVERTISEMENT “Of course if similar facilities that have been operating were affected significantly, imagine for one that was not operational.” The Rwf400 million Ngororero guest house management could not meet its obligations for some months owing to lockdowns, and the district was considering fully privatising the facility.
Authorities, however, say investors entrusted with managing these facilities were encouraged to tap into the national economic recovery fund to shore up business amid successive virus waves.
Rwanda Today established that for more than a year and a half, social distancing restrictions alone left several modern market investments across districts deserted as only half the capacity were allowed to operate mostly at a loss as borders remained closed.
For instance, for months Cyanika cross-border market was turned into an isolation centre for Covid-19 treatment. It would later reopen to business but virus containment measures and the longstanding closure of Rwanda-Uganda common borders kept a big section of the facility idle to date.
Districts like Nyamasheke, Burera, Rubavu, Nyagatare, and Karongi which also incurred multi-million francs setting up modern cross border markets continue to grapple with low occupancy rates even after offering waivers on rent and other incentives.
A report of the auditor general released in May noted a low occupancy rate ranging between as low as 3 percent to 37 percent in over eight markets across four districts where Rwf3.6 billion was invested.
