Population (Millions)

12.5

2017

GDP (Billion)

$9.137

2017

GDP Growth

7.2%

2017

Inflation

4.9%

2017

country brief

Rwanda

Country Context &
Overview.

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.

Continuity and Innovation in
TMEA Strategy 2:

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.

OUTCOME 1: REDUCING BARRIERS TO TRADE

Average time to transport goods along key routes and nodes in the EATN

DETAILS | EXPECTED RESULTS BY 2023

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

Improved trading standards and reduced non-tariff barriers

DETAILS | EXPECTED RESULTS BY 2023

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

Improved and more transparent trade processes and systems

DETAILS | EXPECTED RESULTS BY 2023

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;

Improved regulatory environment for trade

DETAILS | EXPECTED RESULTS BY 2023

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

OUTCOME 2: ENHANCING PRIVATE SECTOR MARKETS FOR TRADE

Better private sector-led advocacy for trade

DETAILS | EXPECTED RESULTS BY 2023

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

Increased efficiency in private sector logistic service

DETAILS | EXPECTED RESULTS BY 2023

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

Increased export capacity of Rwanda businesses

DETAILS | EXPECTED RESULTS BY 2023

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

Greater inclusion of women and small businesses in trade

DETAILS | EXPECTED RESULTS BY 2023

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

Increased Physical Access to Markets

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

Enhanced Trade Environment

Details Results To Date
Rwanda Electronic Single Window
  • Reduction in time taken to clear goods from 11 days in 2011 to less than 1 day 10 hours in 2015. Cost of clearing and obtaining exemptions reduced from RwF 30,000 to RwF 4,000 generating $15M/annual savings for businesses
  • 64 % reduction in export release time from 2 days 19 hours to 1 day and 10 hours
Rwanda Standards Board Testing time reduced from 60 days to 8 days, testing cost reduced from US$ 500 to US$250 per test

Improved Business Competiveness

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;

  • Fixed Asset Tax (FAT) Reform (Proposed FAT increase from 0.1% of property value to 1% was successfully advocated for. The rate increase will progressively be implemented annually and capped at 0.5% for commercial/business property)
  • Lifting the Ban on Right Hand Drive Trucks
  • Removal of import duty & VAT on imported Trucks
  • Mutual Recognition Agreement signed for Engineers in the EAC.
Company Export Capacity enhancement

Supported firms were able to export $1,029,000 by the project closeout.

  • 29 Rwandan firms were provided with trade advisory/business advisory services
Cross-Border Trade (CBT) with DRC, particularly women
  • 2447 women supported to formalise into 64 Cooperatives
  • Supported co-operatives increased trade volume and export value by 64% and 72% respectively.
  • More than 5,578 WICBTs gained knowledge and skills from trainings, workshops and sensitisations.
  • WICBTs learned about project proposal development and access to finance. Approximately US$300,000 worth of loans and funding secured.

Patience Mutesi

Rwanda – Country Director

Patience Mutesi is the Rwanda Country Director for TradeMark East Africa (TMEA). She leads a team of 10 in Rwanda. Prior to joining TMEA, Ms. Mutesi had 12 years’ experience in Banking and Micro Finance in various strategic roles including Corporate Banking, Strategy & Business Development. Ms. Mutesi has an MBA in Finance from Maastrich School of Management in Netherlands and a BSc. Honors in Quantitative Economics from Makerere University in Uganda. She is also an alumni of the Swedish Institute Management Program (SIMP). She currently serves on the Advisory Councils of One Acre Fund – TUBURA a non-profit social enterprise which helps farmers to improve their productivity in Rwanda (serving 265,000 farmers) and Rwanda career women’s network which brings together working women in Rwanda.

Email :Patience.mutesi@trademarkea.com

Phone: +250 788 380 730

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