COVID-19: What the reopening of Kigali International Airport means for Rwanda’s economy

The resumption of commercial flights at the Kigali International Airport is scheduled for next week, after months of closure due to the COVID-19 pandemic. Economic analyst Ted Kaberuka spoke to CNBC Africa about the economic cost of the closure and the significance of its reopening. According to Kaberuka, the closure of the airport had a significant impact on Rwanda's economy as the country heavily relies on air travel for business, tourism, and investment. With no flights operating, investors were deterred, tourists stayed away, and imports were hindered, leading to economic losses. Sectors such as tourism and hospitality were particularly hard hit by the closure of the airport. The reopening of the airport is expected to bring new opportunities for these sectors, as well as for international travel and investment. Although the demand for air travel is currently low, the reopening of the airport is seen as a step towards reviving the tourism and hospitality industries. Kaberuka highlighted that while the airline sector may not be financially profitable, having operational airlines is strategically important for a country. Airlines contribute to job creation, support the tourism industry, and enhance a country's accessibility to other nations. Many governments, including those in Europe, have injected funds into airline companies to support their operations amidst the pandemic. Kaberuka mentioned that it may take up to two years for the aviation sector to become profitable again. The reopening of Kigali International Airport is expected to have a positive impact on Rwanda's export sector. Cargo transportation has been operational throughout the closure, ensuring the movement of goods in and out of the country. With the reopening of the airport for passenger flights, Rwanda aims to attract more foreign travelers, especially for international conferences and meetings. This move is seen as a strategy to help the country recover economically. Overall, the resumption of commercial flights at Kigali International Airport signifies a crucial step towards rebuilding Rwanda's economy and reconnecting with the global market.