Rwanda has made great strides in social and economic development over the past two decades. The country has climbed international rankings on governance, anti-corruption, gender, competitiveness and doing business. Over the past 5 years, GDP grew on average 7% per year and exports of goods and services increased their share of GDP from 11% to 17%.
As a land locked country, however, Rwanda faces economic challenges including a high trade deficit, high cost of transport and energy and a large population dependent on subsistence agriculture. To address these challenges, the Government of Rwanda’s vision 2020 sets out a strategy for inclusive growth by transforming Rwanda through increased trade, export diversification and deeper regional integration.
Rwanda faces structural economic challenges, which inhibit competitiveness and export capability. To address this challenge, Rwanda is expected to improve production in agribusiness; tap into export markets, and support reduction in the prices of goods by an overall growth in trade. There is an opportunity to shift from a low-income, agrarian society to a knowledge- based, service-oriented economy with a well-developed manufacturing sector.
In Strategy 2, TMEA will continue its support to the public sector through reforms focusing on adoption of efficient procedures and systems. It will continue work with business and upscale its transformational work with women. Infrastructure development will also continue to improve Rwanda’s connectivity with its key trading partners in East Africa and beyond.
|Cross-border Market in Rusizi and Rubavu, OSBP in Rusizi II, Harbour facilities to enhance trade on Lake Kivu Trade||Reduction in average time to transport goods along key routes and nodes in the EATN; Reduction in transport costs along key routes and nodes in the EATN|
|Quality and standards, Sanitary and PhytoSanitary (SPS) measures, Elimination of NTBs||Number of high priority NTBs removed as a proportion of high priority NTBs; Proportion of high priority standards mutually recognized, adopted, and implemented; Reduction in standards testing times in targeted countries|
|Trade Community Information Systems (TCIS), Trade Single Windows & Management Information Systems, Customs Efficiency Enhancements||Reduction in cargo clearance times; Reduction in average process time for key non-customs trade processes; Increased predictability in cargo clearance and transit time; Improved perception of traders and logistics operators of the transparency of trading processes and systems;|
|Regional trade integration – policy support, Trade Policy Support||Improvement in partner states’ legislative alignment with EAC commitments; Proportion of high priority regional commitments implemented; Number of national and regional policies implemented, and agreements reached that facilitate trade or create access to markets outside the EAC|
|public-private dialogue, sector-specific advocacy, cross-cutting themes, institutional capacity development||Number of policies implemented as a result of private sector-led advocacy on high priority trade issues|
|Development and operationalization of logistics hub pilot and local transports, wholesale market in Kigali, capacity development for logistics sector, logistics for cross-border trade||Increased uptake of (TMEA targeted) third-party logistics service provision; Increase in the number of innovative logistics solutions provided on the market|
|Export growth for export-ready businesses, market system upgrading along growth hubs and high potential sectors, market systems support to increase availability of ICT, standards and exports advisers||Increase in export revenue at firm level on TMEA supported interventions; Increase in investment in targeted areas and sectors; Stronger linkages developed between firms and suppliers across the priority sectors|
|Creating a gender-responsive trading environment, capacity building, ICT and Innovation||Increased value of trade by women traders and small businesses; Increased number of women and small businesses trading; Improved opportunities to engage in trade for women and small businesses|
Enhance the capacity of the National Monitoring Committee and other institutions involved in the elimination of NTB’s that affect imports into and exports out of Rwanda in the context of the EAC Time-Bound Program for Elimination of NTB’s
The Rwanda Private Sector Federation increases its level of success in advocating for improvement in the business environment. This will contribute to achieving a private sector led sustainable economic growth and social development which will positively influence regional integration policies and practices for growth in trade.
|Details||Results To Date|
|Kagitumba-Mirama Hills OSBP||Kagitumba OSBP completed and operational. 25% reduction in border clearance time achieved as at March 2016 and 75% reduction time in border clearance was achieved in 2017. User satisfaction survey of facilities, clearance process and service delivery was rated at 91% in 2017.|
|Trade and Logistics Hub||25-year concession agreement signed between the Ministry of Trade and Industry (MINICOM) and Dubai Port World, for the Kigali Logistics Platform. An investment of around $40 million has been catalysed for the facility|
|Details||Results To Date|
|Rwanda Electronic Single Window||
|Rwanda Standards Board||Testing time reduced from 60 days to 8 days, testing cost reduced from US$ 500 to US$250 per test|
|Details||Results To Date|
|Giving a voice to the Private Sector||
The Private Sector Federation established forums in which Public Private Dialogue through research-based advocacy were able to influence change in 6 policies with 10 recommendations including;
|Company Export Capacity enhancement||
Supported firms were able to export $1,029,000 by the project closeout.
|Cross-Border Trade (CBT) with DRC, particularly women||