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Exchange Rate Volatility and Decision-Making in Rwanda’s Logistics Sector: A Case Study of Gorilla Logistics Limited

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  • Hakizimana Phanuel

    (Adventist University of Central Africa, P. O. Box 2461, Kigali, Rwanda)

Abstract

This study examines the impact of exchange rate volatility on decision-making within Rwanda’s logistics sector, focusing specifically on Gorilla Logistics Limited. The research addresses challenges in the sector, particularly how exchange rate fluctuations complicate financing, operating, and investing decisions. Utilizing a quantitative research design, data were collected from 41 employees through a structured questionnaire. The findings reveal a significant association between exchange rate volatility and decision-making, with notable effects on financing (Adj-R² = 0.65), operating (Adj-R² = 0.48), and investing decisions (Adj-R² = 0.72). The study concludes that increased exchange rate volatility complicates decision-making, a conclusion supported by qualitative insights. To mitigate these challenges, the study recommends that Gorilla Logistics Limited implement risk management strategies and improve its management of foreign exchange reserves to enhance decision-making processes and maintain competitiveness in Rwanda’s logistics sector.

Suggested Citation

  • Hakizimana Phanuel, 2024. "Exchange Rate Volatility and Decision-Making in Rwanda’s Logistics Sector: A Case Study of Gorilla Logistics Limited," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(9), pages 2457-2463, September.
    • Handle: RePEc:bcp:journl:v:8:y:2024:i:9:p:2457-2463
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    References listed on IDEAS

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    1. Mohsen Bahmani-Oskooee & Hanafiah Harvey, 2015. "Impact of Exchange Rate Volatility and Commodity Trade between U.S. and Singapore," Review of Economics & Finance, Better Advances Press, Canada, vol. 5, pages 22-40, February.
    2. Mohsen Bahmani-Oskooee & Hanafiah Harvey & Scott W. Hegerty, 2015. "The Effects of Exchange Rate Volatility on U.S.-Chilean Industry Trade Flows," Applied Economics Quarterly (formerly: Konjunkturpolitik), Duncker & Humblot GmbH, Berlin, vol. 61(4), pages 353-371.
    3. Mohsen Bahmani-Oskooee & Hanafiah Harvey & Scott W. Hegerty, 2015. "Exchange-rate volatility and commodity trade between the USA and Indonesia," New Zealand Economic Papers, Taylor & Francis Journals, vol. 49(1), pages 78-102, April.
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