PIDG’s $25mn Lake Victoria RoRo project set to improve cargo transport & trade in East Africa

The 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 pivotal moment for East African trade and logistics. Rodney Seema, Regional Asset Management Lead at Infraco, an arm of the group, shared insights on the project's impact on trade and the long-term benefits it aims to bring to the continent. The new RoRo freight vessel on Lake Victoria is poised to revolutionize cargo transport in the region. Rodney Seema emphasized the significance of this development for traders, logistics companies, and truckers looking to move goods efficiently and cost-effectively. Currently, transporting goods by road can be inefficient, involving long travel times and border crossings. The new vessel provides a safer, faster, and cheaper alternative, which is expected to boost trade between Uganda and Tanzania. PIDG played a crucial role in getting the project off the ground, working closely with partners to develop the concept, ensure economic viability, and oversee construction. Seema highlighted PIDG's commitment to excellence in health and safety, diversifying the workforce, and providing extensive training opportunities. The project also prioritized environmental sustainability, utilizing more efficient engines to reduce carbon emissions while transporting cargo. PIDG's investment of $25 million demonstrates its dedication to the region's infrastructure development and aligns with its strategy of de-risking projects to attract institutional investors. The vessel's cost includes development, construction, staff training, and crew preparation for operations. Seema emphasized that the project's financial projections target double-digit internal rates of return (IRR), indicating a promising outlook for investors. The team aims to not only meet but exceed these projections by generating revenue, potentially expanding the fleet with a second vessel, and ensuring shareholders receive the promised returns. Looking ahead, PIDG's priorities in Africa encompass a diverse range of projects across various regions and sectors. With a strong focus on impactful investments, PIDG is actively involved in power projects, off-grid power initiatives, transportation infrastructure like ferries and catamarans, as well as agriculture ventures. The organization's broad presence and commitment to making a difference in the lives of local communities underscore its dedication to driving sustainable development across the continent.