The recent launch of Lake Victoria’s first roll-on/roll-off (RoRo) freight vessel, financed by a $25 million investment from the UK government’s Private Infrastructure Development Group (PIDG), marks a significant milestone for East African trade and logistics.
Rodney Seema, Regional Asset Management Lead at Infraco, a PIDG subsidiary, highlighted the project’s transformative potential. “This new RoRo vessel will revolutionize cargo transport across Lake Victoria,” said Seema. “By offering a safer, faster, and more cost-effective alternative to road transport, it will significantly benefit traders, logistics companies, and truckers.”
Currently, transporting goods by road across the region presents significant challenges, including long travel times and complex border crossings. The new vessel is expected to significantly improve the efficiency and cost-effectiveness of trade between Uganda and Tanzania.
PIDG played a crucial role in bringing this project to fruition, collaborating closely with partners to develop the concept, ensure its economic viability, and oversee its construction. The project prioritized environmental sustainability by incorporating more efficient engines to minimize carbon emissions during cargo transport. Furthermore, PIDG emphasized a strong focus on health and safety, workforce diversification, and the provision of extensive training opportunities for local personnel.
This $25 million investment demonstrates PIDG’s commitment to supporting critical infrastructure development in the region. By de-risking projects and attracting institutional investors, PIDG aims to foster sustainable economic growth across Africa. The project’s financial projections target double-digit internal rates of return (IRR), indicating strong investor confidence and the potential for future expansion, including the addition of a second vessel to the fleet.
Looking ahead, PIDG remains committed to driving sustainable development across Africa through impactful investments in various sectors. The organization is actively involved in a diverse range of projects, including power projects, off-grid power initiatives, transportation infrastructure (such as ferries and catamarans), and agriculture ventures.
This project serves as a testament to PIDG’s dedication to improving connectivity, enhancing trade, and contributing to the economic and social development of communities across the African continent.
