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Trade &Industry

E-newsletter

An insight into Rwanda’s Trade and Industry Vol. 2 Issue 23 OCT 2019

Global Cooperative Movement Concludes in Kigali with

Strong Growth Forecast

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2

Inside this issue

Global Cooperative Movement

Concludes in Kigali with Strong

Growth Forecast

Mauritius, Rwanda top African

nations for doing business

Commonwealth Trade Ministers

Commit to Free Trade

Africa's first smartphone launched in Rwanda

Rwanda launches $35 million

dry port

Rwandan Products Maintain

Demand among Chinese

Consumers

Rwanda’s export drive reaps

success

High Expectations across the

Business Community as

AfCFTA Rolls Out

Page | 3

Global Cooperative Movement Concludes in Kigali with Strong Growth Forecast

Participants during ICA Global Conference in Kigali

Participants from 95 countries from

around the world gathered in Kigali for

the international cooperative

conference that is discussing how to

advance socio-economic

development through the

cooperative movement.

Over 1,000 participants are attending

the conference that is being held

under the theme “Laying the

Foundations of a Peaceful Future:

Cooperatives for Sustainable

Development.”

The conference, which runs between

October 14 and 17, is a platform for

countries to learn best practices from

each other how they can make

cooperatives the future of business

promotion, and job creation.

It is organised by the International Co-

operative Alliance (ICA), in

partnership with Ministry of Trade and

Industry and with inputs of members

worldwide and under the auspices of

the Government of the Republic of

Rwanda and the European

Commission.

Organisers say that the conference will

be used as a platform to project the

contribution and potential of the

Page | 4

cooperative movement for

sustainable and ethical development

across the world.

It aims at sharing experiences

between African states and their

counterparts from other continents for

sustainable and inclusive

development.

Information from ICA shows that there

are about three million cooperatives in

the world and that they employ 280

million people representing 10 percent

of the world’s working population.

Hosting the conference alone is proof

of progress registered by Rwanda’s

cooperative movement, said Prof.

Jean Bosco Harelimana, Director

General of Rwanda Cooperative

Agency (RCA).

RCA is the institution charged with

promoting and regulating the

cooperatives sector in Rwanda.

With 124 years since ICA was created,

he said, it is only for the second time

such a biennial global conference has

been held in Africa, adding that he

first on the continent was held in South

Africa in 2013.

“Hosting this conference implies the

good governance that Rwandans

have, but also the visionary leadership,

and accountability,” Harelimana said.

In case any person misuses the assets

of a cooperative, or use influence

peddling is reported and held

accountable, he indicated.

“Rwanda Cooperative Agency

ensures accountability through

monitoring the management of

cooperatives, and always look for

innovations to enable them perform

better,” he said.

Figures from RCA indicate that there

are about 9,706 cooperatives in

Rwanda with a share capital of more

than Rwf47.8 billion. All the

cooperatives count over five million

members (comprising over 2.77 million

men, and over 2.25 million women).

RCA says that cooperatives have

been crucial in improving the welfare

of Rwandans, citing the role Savings

and Credit Cooperatives (SACCOs)

have played in boosting financial

inclusion in the country.

He said that through these SACCOs,

over Rwf350 billion have been

disbursed in loans to previously

unbanked Rwandans which helped

thousands of Rwandans – who were

formerly – unbanked get finance to

run different profitable businesses.

Supporting growth, job creation

Harelimana said that RCA is

reinforcing entrepreneurship aspect

through cooperatives such that they

can provide jobs to the youth in the

continued effort to reduce

unemployment among young

people.

“Our aim is to rally more youth to join

cooperatives such as those dealing

with agriculture, livestock, transport,

handcraft, transport, services and

mining, among others so that the

youth get employment in those

areas,” he said.

Dr. Claudine Uwera, the Minister of

State for Economic Planning said that

cooperatives have a great role in

development, adding that this

important conference is a learning

platform for progress and more

impact.

“Cooperatives help citizens to

contribute to the achievement of

countries’ development. There are

countries where cooperatives have

advanced, and they come to share

experience with those which are

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lagging behind or still have challenges

facing them so that they learn from

them,” she said.

ICA President, Ariel Guarco said that

there is no other way to achieve

development.

The path of solidarity, of cooperation,

of responsibility, of participation; the

path of democracy and commitment

to our people, our cultures and our

environment, he said.

"There is no future without

cooperation. There is no sustainable

development if we do not choose

business models that put people's

dignity first."

Nicola Bellomo, the EU Ambassador to

Rwanda said that different

stakeholders convened in Kigali in line

with a shared belief in the importance

of the cooperative movement as a

driver of development.

Because of the overall structure of

cooperatives, Bellomo said, this model

has proved to be a reliable people-

centred mechanism which has

enabled people around the world to

take control of their livelihoods and

improve their wellbeing.

“Supporting the growth of

cooperatives is a worldwide effort with

a guaranteed return on investment.

This is because cooperatives

empower people and local

communities to take charge of their

own development, putting people

first, putting people before profit,” he

observed.

"EU and its Member States remains at

the forefront in proactively engaging

and supporting cooperatives in Africa

- Rwanda is a great example of this

partnership,” he remarked.

Why cooperative movement matters

According to ICA, cooperatives differ

from other enterprises in that they

pursue economic and social goals

indissociably from one another, and in

that they are primarily inspired by

citizens' concerns and realities on the

ground, in their own communities.

In addition to their acute

understanding of the problems people

face, they are characterised by

democratic and participatory

governance, through which they

implement their action based on the

values of self-help, self-reliance,

democracy, equality, equity and

solidarity. These cooperative values

and principles are the heart of the

identity and management of

cooperatives.

By placing each person above any

other value, the cooperative

movement can break up the narrow

frames of alienating industrialisation

and provide agency to the

anonymous person.

The rapid deterioration of the planet -

due to deforestation, soil erosion,

climate change, demography, food

chain imbalances, social inequalities,

water supply, energy, urbanization,

biodiversity, etc. – are grave

challenges and have increased the

awareness of citizens and institutions,

ICA says.

Dr Vandana Shiva, an Indian Scientist

and environmentalist, who is also a

Board member of the International

Forum on Globalisation (IGF), said that

“the cooperative movement is

actually following the laws of nature,

the laws of justice, it is following the

laws of humanity,” referring to

inequalities that are brought about by

inequalities in the world.

“With seven billion people on this

planet, with [a few] billionaires on the

other side, this is a sad story for the

future. Yours is the real story for the

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future, cooperatives are the future,”

she said as she addressed hundreds of

participants in the conference.

By signing a framework partnership

agreement with the International

Cooperative Alliance (March 2016),

ICA stated that the European

Commission has, for its part,

recognided that cooperative

enterprises and the cooperative

movement can strengthen and

revitalise the global partnership for

sustainable development.

Mauritius, Rwanda top African

nations for doing business

Mauritius, Rwanda and Morocco were

the top-performing African economies

listed in the “Doing Business 2020”

report released Thursday by the World

Bank Group.

Image: World Bank

The annual ranking looks at 190

nations and evaluates the business

environment on the basis of 10

measures such as access to credit,

with an overall ranking that compares

with the other nations.

While no African nations scored at the

top of the list – New Zealand and

Singapore came out ahead – both

Togo and Nigeria were named among

the Top 10 most improved countries.

Nations in the Middle East and North

African region were among the

strongest in ushering in business-

friendly reforms but remain among the

most difficult locations for gaining

access to credit.

Somalia came in last overall again,

with Eritrea, Libya, South Sudan and

the Central African Republic also

among the worst-performing

economies. Only two Sub-Saharan

African economies rank in the top 50

on the ease of doing business rankings

while most of the bottom 20

economies in the rankings are from the

region.

The rankings are meant to spur reforms

to attract investment and boost

employment, issues that are especially

critical to economic development in

poorer countries including sub-

Saharan Africa. The region’s average

score for access to electricity was 50.4,

with nearly two dozen countries

performing below that average. By

comparison, Mauritius was scored at

88, Rwanda was 82.3 and Kenya was

80.1

In the 50 worst-performing economies,

the electrical connection takes twice

as long as it does in a Top-20 nation,

and the cost is 44 times higher as a

percent of income per capita.

“An entrepreneur’s experience differs

wildly in high- and low- performing

economies,” the World Bank said. “For

example, it takes nearly six times as

long, on average, to start a business in

the economies ranked in the bottom

50 than in economies ranked in the

top 20. Transferring property in the 20

top economies requires less than two

weeks, compared to three months in

the bottom 50.”

Commonwealth Trade

Ministers Commit to Free

Trade

Trade ministers from across member

states of the Commonwealth on

Thursday committed to resist

protectionism and work urgently

together towards reforming the World

Trade Organization (WTO) in an effort

to break all barriers to free trade.

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WTO is the intergovernmental

organization concerned with the

regulation of international trade.

This is highlighted in a communiqué

following a meeting in London where

ministers from the 53 Commonwealth

member countries reaffirmed their

commitment to free trade in a

transparent, inclusive, fair, and open

rules-based multilateral trading system

with the WTO as its core institution.

They were particularly concerned

about the risks of protectionism and

unilateralism to the global economy

and underlined the importance of

resisting all forms of protectionism

including the WTO’s inconsistent

measures that threaten the rules-

based trading system.

The Chair of the meeting, UK Secretary

of State for International Trade and

President of the Board of Trade, Liz

Truss, said the UK along with its

Commonwealth partners have set out

their commitment to fighting against

protectionism.

Truss said: “We must work together to

promote free trade and reform the

multilateral system to make sure it

works for every nation, small or large.

Trade has the power to drive growth,

jobs, and opportunities - it is an

essential tool in the fight against

extreme poverty and insecurity.

“By sharing experience across the

diverse Commonwealth community,

we can help to break down existing

barriers to trade which currently

prevent businesses in all our countries

from trading successfully.”

Free trade in a transparent, inclusive,

fair, and open rules-based multilateral

trading system which takes into

account, among others, the concerns

of developing countries and the

special circumstances of the

developing and the least developed

countries and small and vulnerable

economies, is what is desired.

“The Ministers noted the efforts that

are being undertaken to reform and

modernize the WTO, recognizing the

importance of strengthening and

reforming the organization to improve

its functioning so as to promote

inclusive and sustainable growth and

development,” reads part of their

statement.

“Ministers urged that any reform in the

WTO should take into account the

views of all members. Ministers

reaffirmed their commitment to work

constructively together and with other

WTO Members on the necessary

reform of the organization with a sense

of urgency, including in the lead up to

the 12th WTO Ministerial Conference.”

Digital transformation

According to the communiqué, the

ministers emphasized that as

commonwealth countries individually

address traditional trade policy

challenges, they must also prepare

their national economies for the Fourth

Industrial Revolution that will present

new opportunities for, and challenges

to, prosperity.

In that regard, they appreciated the

work underway among interested

members in the Digital Connectivity

Cluster which is focused on supporting

inclusive digital transformation across

the Commonwealth.

Soraya Hakuziyaremye, the Minister for

Trade and Industry, attended the

meeting and in a tweet, she said:

“Progress made on the connectivity

clusters, especially digital

transformation as an enabler to

increased and inclusive intra-

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Commonwealth trade. Support for

women in MSMEs will also be key.”

Rwanda, the Minister later told The

New Times, along with all

Commonwealth member states,

reiterated its support to the multilateral

trading system, as a champion of the

African Continental Free Trade Area

Agreement (AfCFTA), and having

conducted reforms consistently the

past decade to build a conducive

and open business environment.

Hakuziyaremye said: “As we prepare

to host CHOGM in 2020 and be Chair-

in-Office for two years after that,

Rwanda will work on implementing the

Commonwealth Connectivity

Agenda with a focus on digital

transformation to enable more trade

and investments between

Commonwealth countries.”

“Support to women in MSMEs was

another key area we agreed to keep

working on as well as ensuring

assistance to Commonwealth

countries most affected by climate

change, which need to rebuild their

infrastructure to restart business again,

The Bahamas being the latest case.”

Among others, the ministers

underscored the importance of Smart

agriculture and Smart fisheries to the

Commonwealth, particularly the role

they play in rural job creation.

Recognizing the importance of trade

for sustainable economic growth, and

with a view to deepening cooperation

in the areas including trade and

climate change, and digital

transformation, the ministers

recommended that Commonwealth

Heads of Government reflect on these

issues when they meet in Kigali for the

2020 Commonwealth Heads of

Government Meeting, next year.

The ministers endorsed an action plan

designed to boost trade among their

countries to at least $2 trillion by 2030.

Intra-Commonwealth trade is

projected to reach $700 billion by next

year.

Commonwealth Secretary-General

Patricia Scotland said: “The

multilateral trading system is the only

way for our countries, as diverse as

they are, to trade in a predictable,

stable, transparent and fair

environment.

“While the global trading system may

be far from perfect, it is the surest

pathway towards eradicating

poverty.”

Rwanda and China Boost

Cooperation as they sign New

Business Deals

Rwanda and China’s Zhejiang

Province have signed four deals which

will boost trade and education

cooperation while also strengthening

social cohesion between the citizen of

Rwanda and China.

More than 200 business people and officials

attending Rwanda-China Business Forum.

The deals were entered through

Memoranda of understandings

(MoUs) during the one-day China–

Rwanda Business Forum in Kigali.

Chinese delegation included

Governor Yuan Jiajun who was joined

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in Kigali by a 57-person delegation

comprised of Chinese government

officials and members of the Zhejiang

private sector.

Rwanda’s delegation included

Rwanda Development Board’s CEO

Clare Akamanzi and Minister of Trade

and Industry.

The four deals include; MoU with the

Zhejiang Province Department of

Commerce for cooperation on

investment trade and industrial zones.

It also includes extension of the existing

deals with Alibaba group including;

extension of Electronic World Trade

Platform (eWTP).

Alibaba’s eWTP is a deal the company

inked with Rwanda since October

2018. It is meant to facilitate Rwanda’s

Small and Medium Enterprises (SMEs)

digital infrastructure for doing

commerce with services

encompassing Training, E-Payment

and Tourism.

Also under Alibaba, a MoU will allow

Alibaba Business School to embrace

capacity building through the

Rwanda Higher Education Council.

HEMA, a Chinese supermarket retail

chain also inked a deal with Rwanda

to facilitate Rwanda n companies to

export chilli to China.

In addition, an MoU was signed

between Alibaba and DP World on

logistics and distribution of Chinese

products across Africa, using Rwanda

as an entry point.

In 2016, the Dubai port operator

started establishing $80 million project

subsidiary in Rwanda – meant to

reduce on the cost and duration

traders have been incurring to move

their goods from the main ports in

Mombasa (Kenya) and Dar-es-Salam

in Tanzania.

The subsidiary is already working in

Masaka sector, Kicukiro district-Kigali.

At the Forum, Clare Akamanzi, the RDB

Chief Executive Officer commended

the “welcome interest of Zhejiang to

have a strong business presence in

Rwanda, also proof that Rwanda and

China are forging a mutually

beneficial future for our people.”

Akamanzi explained that the Chinese

are increasingly discovering the

existing business opportunities

available in Rwanda.

To explain this more, she said that, in

the last five years, more than 50

Chinese enterprises registered in

Rwanda with an investment value of

US$250 million in light manufacturing,

agro-processing, construction and

mining.

“Like Zhejiang, in Rwanda we

understand the need for a private-

sector led economy, especially given

Zhejiang’s success in Economic

Development Zones, each with pillar

industries around which clusters are

built,” Akamanzi said.

“I am confident that in Rwanda you

will find the opportunities attractive,

and Rwanda to offer the right business

climate including investment

incentives that are difficult to find

anywhere else.”

Also present was Minister of Trade and

Industry, Soraya Hakuziyaremye.

She said; “China remains one of

Rwanda’s development partners

through a number of projects ranging

from infrastructure, health, trade and

also in Human resource development

be it in Medicine, Aeronautical

engineering, Clinical medicine,

Petroleum, Agriculture, Electricity

engineering and business

development.”

Page | 10

Hakuziyaremye further said; “Our

relationship with China is now one of

Rwanda’s most important, and

certainly one of the longest standing.

China has continued to lead the way

in showing the benefits of engaging

and partnering with Rwanda. Your visit

here today is likely to set important

benchmarks to boost more bilateral

and multilateral trade and investment

ties between our two countries.”

Mr. Yuan Jiajun, said praised the

cooperation between Zhejiang and

Rwanda has achieved fruitful results. In

2018, he said, the trade volume

between Zhejiang and Rwanda was

worth US$ 34.47 million dollars, an

increase of 27.3% compared to 2017.

He said that by the end of June this

year, Rwanda will have invested in the

establishment of seven enterprises in

Zhejiang Province with investment of

more than US$ 1 million; Zhejiang also

invested in two enterprises in Rwanda.

“In particular, the first eWTP

partnership was launched in Africa by

Alibaba and Rwandan government in

2018, which will help small businesses,

young people and entrepreneurs to

realize “global buy, global sell, global

pay, and global travel,” Jiajun said.

Rwanda launches $35 million

dry port

Rwanda's President Paul Kagame on

Monday officially inaugurated a dry

port Kigali Logistics Platform, Rwanda's

largest inland cargo handling facility,

in the capital city of Kigali, as the

landlocked country bids to become a

regional logistics hub.

The platform also hosts a 2,500-square

meter bonded warehouse of Rwanda

Digital Trading Hub of Alibaba

Electronic World Trade Platform

(eWTP) Yiwu Global Innovation

Center.

China's e-commerce powerhouse

Alibaba, Zhejiang China Commodities

City Group, and the port operator

Dubai Ports World, target to build the

bonded warehouse as a central

warehouse for Chinese commodities

in East Africa, and innovate the mode

of import and export trade on this

basis.

The port that costs $35 million spans

over 130,000 square meters, including

a 12,000-square meter container yard

and a 19,600 square-meter

warehousing facility.

It has an annual capacity of 640,000

tons of warehousing space. Kigali

Logistics Platform, located in Masaka

area, Kigali's suburbs, serves as a

gateway to the heart of Africa,

connecting Rwanda to neighbouring

countries including the Democratic

Republic of Congo, Burundi, Uganda,

Tanzania and Kenya.

The facility will also ease access to the

ports of Mombasa in Kenya and Dar es

Salaam in Tanzania.

DP World, a United Arab Emirates firm,

constructed the facility under a 25-

year concession agreement with the

government of Rwanda signed in

2016. It has been operational since

September last year in test mode.

Since the commencement of its

operations, Kigali Logistics Platform

has reduced truck turnaround time

from an average of 10 to 14 days to

three days.

When operating at full capacity, it has

the potential to save Rwandan

businesses up to $50 million a year in

logistics costs.

The dry port is very important for

Rwanda in regional and international

trade as it will ease trade not only in

Rwanda but also in its neighboring

markets, Rwanda's minister of trade

Page | 11

Soraya Hakuziyaremye said at a

launching ceremony of the facility.

The port will address Rwanda's barrier

as a landlocked country to access

regional and international markets,

she said. With the launch of this facility,

Rwanda is doing its part to connect

with the larger market of more than 1.2

billion consumers in Africa and

beyond, President Kagame said at the

ceremony.

The Kigali Logistics Platform comes at

a "pivotal" moment in Afrca's

economic transformation, said

Kagame, who challenged business

people and investors to make full use

of the facility.

Kagame said the future of trade and

integration in Africa lies in the African

Continental Free Trade Area but trade

agreements and economic policies

won't have much impact, without

actual infrastructure, DP World and

the government of Rwanda are

exploring the expansion of Kigali

Logistics Platform to increase

efficiency and provide more logistics

solutions.

Rwandan Products Maintain

Demand among Chinese

Consumers

As opportunities to showcase

Rwandan products in the Chinese

market through various exhibitions are

increasing, the products have

continued to draw attention in the

Asian market.

Rwandan products that are common

here include coffee, chili, tea and

handicrafts.

The popularity of the products has

been witnessed during various shows

such as the recent concluded China

International Food & Catering Expo

held last month in Changsha city,

Hunan Province, and the 2019 Beijing

International Horticulture Exhibition.

Since the beginning of the year,

Rwandan companies have been

invited to participate in various

exhibitions as part of the People's

Republic of China's measures to

actively open the Chinese market to

the world.

Recently, the world's most populous

nation and second largest economy

marked the 70th anniversary of the

Founding of the People's Republic of

China.

Ahead of the celebration, the country

showcased the progress made in

various sectors towards economic

growth and cooperation with other

countries worldwide for common

future.

Chinese economy is shifting towards

demand for high quality and featured

commodities and service.

Since 2019, Rwanda has been

participating in various exhibitions in

China such as Guangzhou

International Travel Fair which has

enabled Rwandan companies to

promote tourism products and Made-

in-Rwanda products.

In April, nine Rwandan companies

participated in the six months Beijing

International Horticulture Exhibition.

The event was said to attract 9.34

million visitors. Local products have

been showcased and the event was

said to be impactful in extending the

reach of Rwandan products

worldwide.

In June, China continued to host more

events to boost economy and trade

partnership with African countries.

There was the first China Africa

Economic and Trade Expo that held in

Hunan province, Changsha. At this

Page | 12

occasion, Rwandan entrepreneurs

turned up to create connections with

their counterparts from China as well

as showcasing their products.

In September, Rwanda again

participated in the China International

Food & Catering Expo in Changsha

City.

Rwandan green beans and roasted

coffee are among products that have

generated interest leading Chinese

coffee experts, buyers and members

of China Coffee Industry Alliance to

announce plans of a visit to Rwanda

to build networks with Rwandan

farmers to increase their exports from

Rwanda.

Rwandan specialty coffee beans

were selected as the only type of

coffee used during the China Barista

Team Championship.

A three-day event was organised by

the Ministry of Commerce of the

People's Republic of China. The event

is one of China's largest expos

covering the entire food and catering

value chain. An exhibitor, Remy

Muhirwa from ENAS-The Rwandan

based agricultural service company

said that the opportunity enabled

them to create market for their

products and help their businesses to

expand.

According to Virgile Rwanyagatare,

Chargé d'affaires at the Embassy of

Rwanda in China Rwanda has good

quality agricultural products to supply

to the Chinese market.

He added that the exhibitions are

good platforms to enhance

exchanges and good collaboration

between communities of various

countries.

"All the experts who tasted the

Rwandan coffee have found it to be

of very high quality. This is exactly what

Chinese coffee lovers are looking for; I

believe Rwandan coffee will soon be

selling well in the Chinese market,"

Ms.Jenny Tong, one of the experts

said.

Upcoming trade fair

Between November 5 and November

10, China will be hosting the second

Chinese International Import Expo.

Organised by the Ministry of

Commerce of the People's Republic

of China, the annual event will be held

in Shanghai at National Exhibition and

Convention Center.

So far, five Rwandan companies have

already registered to participate in the

expo. The firms operate in production

of coffee, pepper, handcrafts as well

as services such as tourism among

others.

This year's expo will be in three phases;

which are Hongqiao International

Trade Forum, country pavilion for trade

and investment and Enterprise and

Business Exhibition

Rwanda has been invited to take part

in the country pavilion for trade and

investment to showcase

achievements in trade and

investment including trade in goods

and services, industries, investment

and tourism, and featured products. It

is an exclusively exhibitory event

without any service for business

transactions.

Launched last year by Chinese

President Xi Jinping, the Chinese

International Import Expo serves as an

open cooperation platform for

countries and regions across the world

to showcase their development

achievements and launch

international trade, and also an

international public product for

promoting trade liberalization and

economic globalization.

Page | 13

The first China International Import

Expo attracted 172 countries, regions

and international organizations and

more than 3,600 enterprises.

According to the officials, the 2019

Expo in Shanghai will help Rwanda

and China strengthen not only

political ties but also cooperation in

trade, tourism and investment.

The event is also said to be an

opportunity to build the image of the

country by showcasing the

achievements, culture, tourism,

investment and trade opportunities.

It is also believed that accessing the

Chinese market will greatly boost the

business of Rwandan companies.

Rwandan participation could also

help speed up ongoing application

process for Rwandan fresh products to

be eligible for export to China such as

beef, chili, and avocadoes among

others.

With the participation of delegations

from more than 100 other countries,

this expo will also be an opportunity for

Rwandan products to be promoted to

the whole world.

Through Chinese International Import

Export, countries will present their

national image, promote trade,

investment and help their companies

opening new markets, further

advancing economic globalization

and open world economy

Africa's first smartphone

launched in Rwanda

The Mara Group, a pan-African multi-

sector business services company

inaugurated Mara Phones

manufacturing plant in Rwandan

capital Kigali on Monday.

The first phones made in Rwanda

rolled off the assembly line last week at

the factory located at Kigali special

economic zone.

Workers at a production unit at Mara Phones

manufacturing plant in Kigali special

economic zone

Mara Phones was designed in

partnership with Google as part of the

Android One Program.

The new factory currently makes two

versions of the phone priced between

$129 and $189.

The factory employs about 200 people

in Rwanda -- 60% of whom are

women.

Speaking at the ceremony, Rwandan

President Paul Kagame said the

introduction of Mara Phones would

put smartphone ownership within

reach of more Rwandans.

"The product is backed by a warranty

and the price can be paid in

installments over two years. They have

tried to make it as simple and useable

for Rwandans as they could,” he said.

He noted that the percentage of

Rwandans using smartphones was

low, but that the government was

gradually dealing with obstacles

through such initiatives of Mara group.

Page | 14

In Rwanda, Internet penetration

currently stands at over 52.1%, up from

7% in 2011.

Phone penetration has grown to over

80.6% currently, from 33% in 2010,

according to the ministry of ICT and

Innovation.

"The smartphone is no longer a luxury

item. It is rapidly becoming a

requirement of everyday life. That

trend is bound to increase in the years

to come, as more and more services

migrate to digital platforms," Kagame

said.

He underlined that the investment by

Mara Phones Group was in perfect

harmony with the country’s focus on

science and technology, as the key

drivers of economic transformation.

Apart from Rwandan market, Mara

aims to export phones to other

countries in the region as well.

Mara Phone chief executive officer

Ashish Thakkar said the company

strongly believed locally smartphone

manufacturing would bring huge

pride to the African continent.

"Today is a big dream come true not

only for Mara but also for Rwanda and

Africa. This is a historic moment helping

shift the narrative for the African

continent in the true sense that

Africans can also produce high-

quality global standard products," he

said.

"This is manufacturing not assembling,"

Thakkar added.

Thakkar last year also announced the

company's intentions to build an

affordable smartphone production

facility in South Africa.

New Gold Refinery to Boost

Mineral Exports

Rwanda has set up its first-ever gold

refinery with a capacity to process

gold from around Africa.

A worker at Aldango Gold Refinery puts gold

powder into a high temperature heating

device to melt

The $5 million plant is located at the

Kigali Special Economic Zone in

Gasabo District is expected to boost

efforts to ensure that Africa adds value

to its minerals before exporting them.

Aldango, the company behind the

initiative is a joint venture between two

firms – Hilly Metals Company, a local

company, and Aldabra. The two firms

hold equal shares in the business and

the refinery has been in operation

since March. Aldango was previously

running as a business dealing in gold.

Page | 15

Speaking to the media, Jean de Dieu

Mutunzi, the company’s chairman

said,

“We have built an advanced factory

with enough capacity to process large

quantities of gold from all around

Africa.”

“What we are doing is not new but

people have been used to taking gold

to Europe, Dubai, Turkey, Switzerland,

and Belgium. Now we have the same

factory with the standards as those in

Europe and Asia,” he added.

Trade and Industry Minister, Soraya

Hakuziyaremye at Aldango new facilities at the

Kigali Special Economic Free Zone.

The company will buy gold from across

Africa and process it to attain 99.99%

purity, fetching higher prices and put

a stop in exportation raw minerals from

the continent.

The refinery is also expected to go a

long way in saving the lives of miners

and dealers who when transporting

the commodity get attacked.

Company officials believe the firm can

help minimize those threats since there

won’t necessarily be need to travel

long distances looking for a place that

can refine gold.

The Government of Rwanda supports

the imitative and says this is an

important development.

“This is a critical investment for our

country,” Soraya Hakuziyaremye, the

Minister of Trade and Industry, noted

on Tuesday as she toured the refinery

along with other officials.

Trade and Industry Minister, Soraya

Hakuziyaremye, witnesses the refinery process

inside Aldango new facilities at the Kigali

Special Economic Free Zone.

She said it signals to the fact that

Rwanda was moving on to the next

phase of adding value to its minerals.

The gold refinery is the first of its kind in

the country, she said.

“This is also to showcase that we can

add value to raw materials and

investments that have been made,”

she said, pointing out that the African

continent loses a lot when it exports its

resources raw.

Rwanda moves to facilitate

cargo transit

Rwanda is doing its best to ensure

seamless movement of transit cargo

at national, regional and international

levels, a senior official said Thursday.

The government of Rwanda has

already implemented a number of

Page | 16

trade facilitation interventions such as

the introduction of the Rwanda

electronic single window system,

which has enabled faster clearance

of imports and exports, Rwandan

Minister of Infrastructure Claver Gatete

said during the opening of the third

edition of the Global Logistics

Convention in Kigali, capital city of

Rwanda.

This has also improved efficiency,

transparency and accountability in

revenue collection, said Gatete.

The system, launched in 2012 by the

Rwandan government, facilitates

international trade by speeding up

and easing flow of trade related

information between traders and the

government, whereby required

documents are submitted once at a

single entry point.

Gatete cited other interventions to

ease movement of cargo including

construction of One Stop Border Posts

at key entry and exit points,

elimination of non-tariff barriers along

transport corridors and developing

modern inland container depots.

The ultimate goal with the above

initiatives and efforts is to completely

eliminate the remaining non-tariff

barriers to drastically reduce transport

costs, improve the turnaround time for

trucks, translate these gains and

improvements into price reduction in

our domestic market, he said.

Days of cargo transit from Kenya’s

Mombasa port to Kigali has been

reduced from 14 to 16 days in 2017 to

5 days in 2018 as a result of

implementing various trade facilitation

interventions, which significantly

reduced the cost of transport,

according to him.

The cost for transporting containers

from Mombasa to Kigali reduced from

6,500 U.S. dollars in 2011 to 4,800 dollars

in 2017, which saved Rwanda about 7

million U.S. dollars, according to

statistics released last year from Trade

Mark East Africa, a not-for-profit

company established to support the

growth of regional and international

trade in East Africa.

The statistics also showed the single

electronic window system resulted into

a 46 percent reduction in average

time spent to clear goods from

customs and 64 percent reduction in

export release time.

The two-day convention, co-

organized by the Federation of East

African Freight Forwarders

Associations and Rwanda Freight

Forwarders Association, brought

together about 500 participants from

across the world including

professionals from the transport sector,

logistics policy makers and other

stakeholders to discuss challenges

hindering provision of freight logistics

services as well as emerging trends.

The meeting offers a platform for

professionals in transport and freight

logistics sector to share best practice,

engage with transport and logistics

policy makers, other stake holders,

and discuss emerging trends and

development in the sector.

Rwanda records $250 million

Chinese investments over the

last five years

In the last five years, more than 50

Chinese enterprises have been

registered in Rwanda with an

investment value of $250million, Claire

Akamanzi, The CEO of Rwanda

Development Board has revealed.

She was speaking while opening

China – Rwanda business forum in

Kigali together with a 57-person

business delegation from Zhejiang.

Page | 17

The China–Rwanda Business Forum is

an opportunity to showcase business

opportunities in Rwanda and Zhejiang,

existing partnerships, as well as act as

a platform for networking and business

engagement between the respective

private sectors.

She said that there have been an

increasing number of Chinese

businesses turning their eyes to

Rwanda.

“They operate in light manufacturing,

agro-processing, construction and

mining.Like Zhejiang, in Rwanda we

understand the need for a private-

sector led economy, especially given

Zhejiang’s success in Economic

Development Zones, each with pillar

industries around which clusters are

built,” she said.

She said that there are several

avenues for investment in various

sectors – from opportunities in ICT

(software development, device

manufacturing); Manufacturing

(construction materials, light

manufacturing, textiles,

pharmaceuticals); to Energy,

Infrastructure, Tourism, and

Agriculture, to name but a few

“I am confident that in Rwanda you

will find the opportunities attractive,

and Rwanda to offer the right business

climate including investment

incentives that are difficult to find

anywhere else,” Akamanzi said while

addressing the delegation.

In fact Rwanda and the province of

Zhejiang already enjoy a good.

“Zhejiang has supported several

initiatives in the TVET and digital

economy sectors. The Chinese

Polytechnic in Zhejiang Province

supported the expansion of Musanze

Polytechnic (IPRC) and provided

equipment to enhance practical

teaching at the college,” she noted.

The Jinhua Polytechnic has also been

providing scholarships to Rwandan

students since 2014 to train in; Vehicle

Inspection and Maintenance

Technology, Communication Network

and Equipment, as well as Hospitality

Management.

“So far, 42 Rwandans have graduated

from Jinhua Polytechnic, and 53 are

currently enrolled.” “And following the

launch of the e-WTP (electronic-World

Trade Portal) program in Rwanda,

Zhejiang Province pledged to fund

tuition fees for 20 young Rwandan

students to study a 4-year

Undergraduate degree in E-

Commerce at the Alibaba Business

School in China,” she added.

This program is scheduled to start in

September 2019. 20 students have

been selected for the program and

are currently in the process of applying

for visas. A lot more of collaboration is

underway.

The Government of Rwanda has been

at the forefront of bold reforms both in

the public and private sectors with a

view to ease doing business and

attract more investors and the RDB

CEO said that It is for this reason that

Rwanda is ranked by the World Bank

as 2nd in Africa and 29th in the world

in the Ease of Doing Business

“It is perhaps also testament to the

reforms and bold decisions that we

have seen several reputable

companies/organisations invest in

Rwanda; such as Volkswagen,

Andela, CMU and start-ups develop

into regional players.

More interestingly, however, is that

Rwanda is now well positioned as a

Proof-of-Concept country – where

companies such as Zipline establish to

test their concepts and develop them

into viable business projects that can

be scaled up to the rest of the world,”

she said.

Page | 18

She reiterated government has put in

place suitable infrastructure to foster a

conducive business environment that

enables the private sector to become

the engine of growth.

“Indeed, these efforts have resulted in

an annual average GDP growth rate

of 7.5 percent over the past decade,”

Akamanzi.

Rwanda looks to fast-track

China-Africa trade expo to

advance local products

Rwanda hopes to use the first China-

Africa Economic and Trade Expo

scheduled for June 27-29 in central

China's Hunan Province to advance

the marketing of local products, an

official said on Wednesday.

The expo will be an opportunity for

marketing Rwandan products as

Rwanda seeks to reduce the trade

balance with China, Sanny

Ntayombya, communications and

marketing Manager at Rwanda

Development Board (RDB), told the

media.

Rwandan businesses set to take part in

this month's trade expo will be

showcasing made-in-Rwanda

products including chili oil, French

beans, processed juice, tea and

coffee, and handcrafts, said

Ntayombya.

Rwanda's participation in the

exhibition underscores its willingness to

strengthen its trade and investment

ties with China, which could help

speed up the ongoing application

process for Rwandan fresh products to

be eligible for export to China

including beef, chili, avocados, etc.,

he said.

With a potential market of over 1 billion

people, Rwanda believes that it is

essential to trade with China, said

Ntayombya, noting that there is huge

potential in the Chinese market.

The government of Rwanda and

China's e-commerce giant Alibaba

last October launched Alibaba's

Electronic World Trade Platform

(eWTP), which makes Rwanda the first

African country that launches such a

platform.

In the long term, Rwanda hopes to

expand the partnership with Alibaba

to export Rwandan products to China

including beef, chilies and avocados

in addition to coffee, said the official.

A Rwandan agriculture company

Gashora Farm told Xinhua that

exhibitions of China present many

opportunities for African goods to

access the huge Chinese market.

The company secured a half-year

contract worth 2 million U.S. dollars to

supply chili oil to a Chinese food

factory last November during the first

China International Import Expo.

"From the previous Chinese expo, I

have been inspired to think big. I'm

now positioning myself to produce for

export and infiltrate big markets," said

Dieudonne Twahirwa, managing

director of Gashora Farm, which will

take part in the upcoming expo in

China.

"The Chinese market is important as

China is Africa's major trading partner,"

said Twahirwa, adding that he is

expecting to attract more customers

and seal more business deals in the

expo.

A total of 53 African countries have

confirmed to attend the expo to be

held in Changsha, the capital city of

Hunan, Hunan's deputy governor He

Baoxiang said earlier this month.

It will be attended by more than 1,500

foreign guests, over 5,000 domestic

Page | 19

guests, as well as more than 3,500

exhibitors, buyers and professional

visitors, he said.

Launched under the framework of the

Forum on China-Africa Cooperation,

the expo will establish a new

mechanism for economic and trade

cooperation between China and

African countries.

In 2018, China-Africa trade reached

204.2 billion U.S. dollars, up 20 percent

year on year, and China has been

Africa's largest trading partner for 10

straight years.

Rwanda will host Intra-African

Trade Fair 2020

The second Intra-African Trade Fair

(IATF2020) scheduled to take place in

Kigali from 1 to 7 September 2020 will

target the execution of intra-African

trade deals worth more than $40

billion, Prof. Benedict Oramah,

President of the African Export-Import

Bank (Afreximbank), announced

yesterday.

Prof. Oramah was speaking in Kigali at

the signing of the hosting agreement

for IATF2020 by the Government of

Rwanda, Afreximbank and the African

Union.

Minister of Trade and Industry, Soraya

Hakuziyaremye, signed for the

Government of Rwanda while Prof.

Oramah signed for Afreximbank and

Amb. Albert Muchanga,

Commissioner for Trade and Industry of

the African Union, signed for the

organisation during the ceremony

held at the Transform Africa Summit

taking place in Kigali

Prof. Oramah said that for IATF2020,

which is being organized by

Afreximbank in collaboration with the

African Union and hosted by Rwanda,

the partners had set themselves the

ambitious target of attracting more

than 1,000 exhibitors and hosting over

10,000 buyers and conference

participants from over 50 countries.

According to him, the trade fair will

build on the tremendous progress

made in the first Intra-African Trade

Fair held in Cairo in 2018 to achieve

more far-reaching results in terms of

impact in promoting intra-African

trade.

Prof. Oramah who noted that “52

countries have signed the AfCFTA and

22 have ratified it, paving the way for

the agreement to enter into force”,

said that IAATF2020 would include an

IATF Trade and Investment Forum

which will look at the practical

challenges affecting AfCFTA

implementation and provide solutions

on how to address them and exploit

the benefits offered by the

Agreement.

Minister of Trade and Industry, Soraya

Hakuziyaremye during the signing ceremony.

Afreximbank will showcase some

practical solutions, including the Pan-

African Payments and Settlement

System, which will be launched at the

AU Extra-Ordinary Summit of Heads of

State and Government in Niamey in

July 2019, he said. That system will

facilitate trade settlement in local

Page | 20

currencies, providing a vital boost to

intra-regional trade.

Also speaking, Amb. Muchanga said

that the partners in the IATF had

succeeded in creating a brand and

that the trade fair was a platform for

sharing trade information. It brought

together buyers and sellers and

created access to financing for

businesses.

Amb. Muchanga announced that the

African Union was establishing an

African Trade Observatory, which will

gather trade-related information from

African countries and be a resource

for anybody who wanted to trade with

the continent as a source of general

trade statistics.

Minister Hakuziyaremye expressed

Rwanda’s appreciation at being

selected to host IATF2020 and said that

the country was committed to

building on the success of IATF2018 to

ensure a successful event in 2020.

She urged all African countries to work

together for the success of the AfCFTA.

IATF2018 attracted more than 1,000

exhibitors from 45 countries and across

20 sectors, generating in excess of $32

billion in deals, some of which

Afreximbank has already financed.

IATF2020 will provide a platform for

businesses to share trade, investment,

and market information and for buyers

and sellers, investors and countries to

conclude business deals.

MINICOM to solve

Underproduction across

Factories

The Minister of Trade and Industry

Soraya Hakuziyaremye has assured

parliament that officials who were

involved in purchasing faulty

equipment for government funded

factories will be held accountable

after an internal audit is conducted.

This resolve comes after it has

emerged that at least 34 agro-based

processing plants have completely

closed doors since 2016 creating a

push and pull blame effect between

the ministry of trade and agriculture

The Minister of Trade and Industry Soraya

Hakuziyaremye(Third Left) during

parliamentary briefing

“We are going to do an internal audit

on what happened in these factories

to find out where the mistakes came

from and anyone involved will face

justice, “said the Minister

Hakuziyaremye.

The minister was appearing before the

lower house of parliament on March

27, 2019 Wednesday to answer 21

questions on why farmers’ produce

has failed to get market, why

community based factories have

closed doors, and her plans on

improving local production and

export policy of made in Rwanda

products among others.

Rwanda and Democratic

Republic of Congo in drive to

promote and facilitate Cross

border Trade

The Government of Rwanda, through

the Ministry of Trade and Industry,

hosted the second Ministerial Meeting

on Cross-Border Trade Facilitation

between the Democratic Republic of

Congo (DRC) and Rwanda.

Page | 21

The Ministerial Meeting between Hon.

Soraya HAKUZIYAREMYE, Minister of

Trade and Industry of the Republic of

Rwanda and Hon. Lambert MATUKU

MEMAS, Minister of external Trade of

the Democratic Republic of Congo

followed that of the Expert Meeting of

the two countries.

The bilateral meeting was held in Kigali

and aimed at, among others, consider

an agreement intended to promote

and facilitate cross-border trade

between the two countries that they

signed in 2016, and devise ways to

address identified challenges.

Among of decisions that have been

made is that tax bodies of the two

countries will continue to improve their

cooperation so that the simplified

trade regime that was put in place by

COMESA, to benefit traders especially

those living near the borders, be

respected

Minister of Trade & Industry, Soraya

Hakuziyaremye with her DRC counterpart

Lambert Matuku.

Speaking at the event, Minister

Hakuziyaremye pledged the

commitment of the Government of

the Republic of Rwanda to support the

efforts of the implementation of the

Memorandum of Understanding on

Bilateral Cooperation in Cross-Border

Trade between the DRC and Rwanda

and initiate regular consultations

between experts of the Joint

Committee to eliminate non-tariff

barriers as soon as possible.

“Our pride would be to see the

expected results of RECOS contribute

to the growth and improvement of the

living conditions of our populations.

Together we can do it.” She added.

Rwanda recognizes the importance of

continuing to improve cross-border

trade through the various trade

facilitation policies. Maintaining this

momentum requires coordinated and

focused efforts by both countries, such

as developing transport networks,

storage facilities, building cross-border

markets, and improving border

services to make trade faster and

cheaper.

In 2018, total trade between Rwanda

and Democratic Republic of Congo

amounted to 129.4 million US dollars.

Local Farmers Urged to

Increase Exports to EU Market

Rwanda still imports more than it

exports to other foreign markets and

this puzzle continues to elude local

economic planners that spend

sleepless nights cracking through

moves that would balance trade.

Experts have realised that the biggest

problem is lack of correct information

among local firms and that this

challenge does not require rocket

science to fix.

Local Exporters during the Training

Another complex huddle that local

firms have to jump over is the intricate

trade barriers.

Page | 22

The European Union Delegation to

Rwanda conducted Market Access

training for Rwandan companies in

conjunction with ITC’s Market Analysis,

Private Sector Federation, Ministry of

Trade & Industry, Agriculture Ministry

and the Agricultural Export

Development Board (NAEB).

This training According to the EU

delegation in Rwanda is “an initiative

that complements our development

support to the agriculture sector in

Rwanda.”

Nicola Bellomo EU Ambassador to

Rwanda told the trainees that

Rwanda has free access to the EU

market (everything but arms) but

volumes of exports remain low.

“Most of our trade consists of EU

imports to Rwanda; our objective is to

balance our trade relations – and to

help create jobs and economic

growth in the process,” Bellomo said.

This training is considered a great

opportunity for our export SMEs, for

those that did not get a chance this

time more training and support soon!”

says the chief executive officer of the

National Agricultural Export

Development Board.

According to the International Trade

Centre (ITC), Rwanda still has an

untapped potential to export $14.5M

more to Europe. In 2017 alone,

Rwanda exports to European markets

accounted for a Total: $53.5million.

Cutting through the wooves of

international trading, local Rwandan

firms need to know that Rwandan

products don’t pay import tariffs when

entering the EU market.

Kamembe Airport Upgrades

nearing completion

The Government of Rwanda through

Rwanda Airports Company (RAC),

with funding from the World Bank has

been carrying out key infrastructure

upgrades at Kamembe International

Airport for the last three years. This

forms a key component of Great

Lakes Trade Facilitation Project

(GLTFP) where the World Bank funding

is channeled.

Kamembe Airport with New Runway & Security

Perimeter Fence

The Great Lakes Trade Facilitation

Project financed the upgrading of the

Navigational Aids and Weather

Equipments, installation of

Aeronautical Ground Lighting, Airport

Perimeter Fencing and Fence Lighting,

improvement of main and standby

power supplies and installation of a

New Message Handling System at

Kamembe airport with the view to

connect the Eastern DRC to the GLR

and beyond through Rwanda’s main

gateway Kigali International Airport.

According to Paul Grummett, the

Project Manager, the Perimeter

Fencing and Fence Lighting has been

completed and the remaining

components will be completed in the

next 12 months since all Contractors

are on board.

The overall project goal is to facilitate

cross-border trade between Rwanda

and Democratic Republic of Congo

by increasing the capacity for

commerce and reducing the costs,

time, and harassment faced by

traders, especially small-scale and

women traders, at targeted

Page | 23

borderland locations in the Great

Lakes region.

The airport has a comparative

advantage over other airports in the

region: both Goma (DRC) and

Bujumbura (Burundi) airports are more

than 100km from the Bukavu while

Kamembe is 25 minutes flying time

from Kigali, through which travelers

can connect to the rest of the world.

The majority of passengers passing

through Kamembe are Congolese

(about 90 percent), a significant

proportion of whom source tradable

goods from the Middle East and ship

them through Rwanda. The airport has

great potential, with passenger traffic

growing at an average of 15 percent

per annum between 2006 and 2013,

and at an average of 19 percent

between 2010 and 2013.

The upgraded infrastructure is

paramount to the airport as it will

improve its security conditions, safety,

compliance with international

aviation standards and capacity.

How to create a financial

sector that works for Rwanda’s

SMEs

Earlier this month during the Central

Bank’s launch of the Monetary Policy

and Financial Stability Statement, the

Minister for Trade and Industry, Vincent

Munyeshaka, challenged financial

sector players to introduce innovative

products for Small and Medium

Enterprises (SME’s)

The minister is right to give us such a

challenge, and we in the financial

sector should listen well to how it was

phrased – innovate to serve the needs

of SMEs. He did not challenge us to

extend the reach of existing products

through mere financial inclusion nor to

improve the efficiency of service

delivery. He challenged us to provide

solutions that work for the SME sector.

When thinking about innovation,

established players, such as

commercial banks that dominate the

Rwanda’s financial sector, tend to

focus on improving existing products,

making incremental changes. We

have seen the Rwandan financial

sector do so recently, bringing online

banking and mobile applications to

their clients while their main corporate

product remains the same –term loans

with fixed repayment schedules

collateralized by land titles.

Incremental innovation is not

necessarily a bad place to start, but it

limits our focus to what is already

available on the market. However, as

the Minister pointed out, it should be

clear for everyone that more efficient

iterations of existing products are not

going to solve the structural

challenges surrounding SMEs’ access

to finance.

We cannot entirely blame

commercial banks and Microfinance

Institutions (MFIs) for their lack of

capacity for disruptive innovation.

Indeed, this is not an exclusively a

Rwandan phenomenon. Banking

business models in developed markets

have scarcely changed since the 19th

century, iterating only on their existing

product ranges and improving the

channels they use to reach clients with

those products.

Given their systemic importance and

potential for creating major crises,

traditional banks and other deposit-

taking institutions are (and should be)

also heavily regulated, which further

limits their ability to introduce new

services or make changes to their

business mod-el.

Having already saturated the large-

company segment of the market for

whom the existing products do work

and lacking the ability to come up

Page | 24

with disruptive innovation, Rwandan

banks now focus on retail markets as

their growth markets. MFIs, facing the

same internal innovation capacity

constraints, deploy a similar strategy,

focusing on microenterprises (with 1-3

employees), whose financial needs

are similar to those of retail customers.

SMEs in the meantime struggle with ill-

suited risk assessment technologies

copy/pasted from developed

countries and high transaction costs

and time requirements – or they use

the ubiquitous moneylenders (the

Banque Lamberts), who for all their

flaws, at least understand what is

important for their SMEs clients –

speed, low transaction costs and

flexibility.

Where financial innovation comes

from?

So if not the incumbents, where can

financial innovation for SMEs come

from? It comes from start-ups, the non-

bank financial institutions (NBFIs) and

the fintechs. These are businesses who

do not operate within the limitations of

the fractional reserve banking model

(attract deposits to on-lend at a higher

rate), but can focus freely on the

needs of the customers, asking “What

is your pain point and your goals? As a

business owner, what are your biggest

constraints?”

The financial solution is then designed

according to the stated goal:

expanding business operations,

paying bills and taxes on time, transfer

money quickly and reliably, portray an

image of reliability to new clients and

suppliers and cover the cost of

rebuilding in case of a fire, etc. The

customer is at the centre of financial

innovation, not the activity nor

business model of the financial

institution. Indeed, the main pain point

might not be financial in nature at all,

although in Rwanda access to

appropriate and affordable financial

services is the main constraint.

Financial innovation is different from

other types of innovation in that the

main concern is how to control risks.

When you’re in the business of offering

money, it is after all not hard to find

willing clients. The challenge is rather

how to ensure full recovery with a

percentage fee on top.

Therefore, the additional question a

financial innovator needs to ask is

“Now that I know what our clients

struggle with, and have an idea for

how to solve it, how do I identify which

clients I can trust with my money?

What can I do if I am wrong or the

initial business plan does not work out?

As a result, financial innovation tends

to manifest itself in new ways to screen

applicants, new mechanisms that

encourage repayments or new ways

of automating collections. The

innovation that gave rise to

microfinance is a classic example.

The Minister’s challenge is to come up

with a similar solution for SMEs tailored

to their current characteristics. The

challenge is not to change the SMEs to

fit existing products, but for the

financial sector to change to fit the

SMEs.

Implications for Rwanda’s financial

institutions

Given the more sophisticated needs

of SMEs compared to micro-

enterprises, and their fewer internal

resources compared to large

corporations, the challenge is indeed

complex. An SME client with a goal

such as “expand my business” may

need the following:

1. Investment capital for buying

assets, e.g. term loans or equity

investments;

2. Working capital for covering the

increased operational costs, e.g.

overdrafts, supply chain finance,

supplier credit or buyer advances;

Page | 25

3. Insurance cover to protect from

accidental damage or loss;

4. Payment solutions that are widely

accepted within the business

community, are se-cure and have low

transaction costs;

5. Savings products for future

investments.

It is clear that no one institution can

provide all these services alone.

Financial service providers specialise

due to efficiency gains, as well as

regulatory constraints imposed for sys-

tem stability. However, the SME client

cannot be expected to have the

managerial band-width or time to

research the regulatory nuances or

different requirements, when they just

need financial services for their

operations. Indeed, they should not

have to concern them-selves with how

our plumbing works. From the

perspective of the client, any time

spent obtaining financial services is

time wasted, since it is not spent on

running operations.

SMEs tend to go to a commercial bank

as their first port of call for financial

services due to the trust that they have

in such institutions. However, as the

Minister pointed out, their needs are

not met by the current offerings of

banks which is the cause of much of

the observed frustration.

The banks should therefore leverage

other financial players to provide a

holistic suite of services, tailored to the

needs of the clients and fully

integrated to minimize transaction

costs. The benefits of such

collaboration should be clear. NBFIs

and fintechs can take risks and

structure new business models that the

fractional reserve banking model does

not allow for, while leveraging

technologies that legacy core

banking systems cannot easily deploy.

Banks, on the other hand, bring the

clients’ trust and data as well as

financial muscle and as a result share

in the revenue streams that NBFIs and

fintechs open up for them. From the

client perspective, however, the

service delivery is holistic and

minimises time away from their core

operations.

Indeed, banks in developed markets

now compete on the basis of the

integrated end-to-end solutions they

can offer together with their partners,

rather than on how efficiently they

can deliver their core in-house

products. This is an encouraging trend

for innovation and one we hope to

see more of in Rwanda.

We can understand the Minister’s

challenge as a challenge to

collaborate for innovation and thus

better service the needs of our

brothers and sisters working hard to run

SMEs and create jobs for Rwandans up

and down the country.

Understanding Rwanda,

China bilateral agreements

Rwanda is also in the process of setting

up strategic partnership with China to

promote the human resources

development across different sectors.

Rwanda and China signed 15 bilateral

memorandum of understanding

(MoUs) and agreements during

China’s President Xi Jinping’s state visit

to Rwanda.

The signing ceremony was one of the

major highlights of Xi’s two-day visit.

Here is what some of these

agreements mean to Rwanda:

Bugesera International Airport road

project.

Page | 26

Trade infrastructure is one of Key Pillars in

Rwanda –China Bilateral Agreements.

The Rwandan government signed a

loan agreement to expand the road

leading to Bugesera International

Airport, which is scheduled for

completion by the end of 2019.

Government is borrowing $50 million

from Exim Bank of China to finance the

construction of the 13.8 km

expressway. While government

officials did not reveal the detail of the

loan agreement, such as interest rates

and payment terms, Exim banks

normally charge 1.5 to 2.5 per cent,

according to Caleb Rwamuganza,

the Permanent Secretary in the

Ministry of Finance and Economic

Planning. “We signed MoUs with Exim

Bank of China but we haven’t got into

all details,” he said.

According to officials at the Rwanda

Transport Development Agency

(RTDA), the expansion of the road,

Sonatube-Gahanga-Akagera Bridge

Road, is expected to start within the

next six months and the execution

period is estimated at around 24

months.

With Rwanda set to host the next

Commonwealth Heads of

Government Meeting (CHOGM) in

2020, there is a push for early

completion of construction activities

at Bugesera International Airport to

accommodate the highly-anticipated

traffic.

RTDA’s Imena Munyampenda told this

paper that they want the road to be

completed before the airport

construction activities. Infrastructural

projects tend to be capital intensive,

making it hard for a country to foot the

entire cost upfront.

While some experts have cautioned

against increased borrowing,

Rwamuganza said that Rwanda

borrows within its capacity,

highlighting that all the country’s

debts are manageable.

E-commerce

On behalf of the Rwandan

government, the Minister for Trade

and Industry, Vincent Munyeshyaka,

signed a Memorandum of

Understanding on e-commerce

cooperation.

This agreement comes a year after

Jack Ma, founder of China’s e-

commerce giant, Alibaba Group,

visited Rwanda, whereby he made

investment commitments for African

start-ups in e-commerce and other

tech businesses.

The Trade Minister said this agreement

will promote digital trading even as he

did not specify what areas of e-

commerce they will collaborate.

Yet, experts believe this particular

agreement is a step in the right

direction for the development and

promotion of Rwanda’s nascent e-

commerce industry.

According to Norbert Haguma, an

Investment Advisor for Chinese looking

to invest in Africa, China got it right

Page | 27

with e-commerce infrastructure,

which Rwanda can seek to replicate.

“The infrastructure of e-commerce is

really needed in order to develop the

industry in Rwanda. If you want to buy

honey from the Southern Province, or

fruits from the Northern Province, it

should be possible to do that via e-

commerce platforms,” he said.

Haguma also argued that e-

commerce is more about technology,

which China has mastered for the past

few years, and that Rwanda can really

benefit from sharing and learning best

practices.

“E-commerce implies big data, cloud

computing because you cannot ask

for every manufacturer to build their

own website as nobody will easily find

them. That’s why on Alibaba, Taobao,

and Tmall you can easily set up shop

and sell, making e-commerce a tool

to do business,” he noted.

He highlighted that Rwanda can also

learn from how China has financed

the e-commerce industry.

Rwanda’s e-commerce industry is

slowly growing and the industry has

started attracting foreign investors like

DMM Group owned by Japanese

investors.

The group is currently making a strong

push within the e-commerce field in

the country. They have built the first e-

commerce directory, Hehe (hehe.rw).

There are other players like Jumia.

Investment in human resources

development

The country is also in the process of

setting up strategic partnership with

China to promote the human

resources development across

different sectors. This will enable the

country make progress in developing

a critical mass of trained human

resources.

It is widely believed that investments in

people’s capabilities through a focus

on education, nutrition and health as

well as productive skills enhancement

can increase access to decent work

and provide opportunities for

sustained progress.

It is not yet clear what areas of

collaboration the two countries will

take, but China’s human resources

industry is diverse.

By the end of 2020, China expects

revenue from the human resource

industry to reach 2 trillion yuan (about

$303.7 billion), according to statistics

by the Chinese government.

Haguma, who is also the Secretary of

Rwanda-China Alumni Organisation,

said that there is currently an increase

in the number of Rwandans going to

study in China in a number of fields

including vocational training.

“But what is lacking is the pursuit of

more technology acquisition, and this

is something we want to do as an

organisation as part of our

contribution,” he said.

Transforming Rwanda’s

economy through urbanizing

and promoting Secondary

Cities

According to the 2012 population

census results, Rwanda has the highest

population density in Africa with 416

people per square km with Kigali

being the most densely populated

region with 1,556 people living per

Page | 28

square km, almost 4 times that of the

entire country.

Roads being developed in secondary cities.

Over the last 5 years, the

implementation of the Economic

Development and Poverty Reduction

Strategy (EDPRS) 2013/14 – 2017/18

hinged on four thematic areas,

namely; Economic Transformation,

Rural Development, Productivity and

Youth Employment, and Accountable

Governance.

Specifically, under “Economic

Transformation”, the Government of

Rwanda envisaged accelerated

economic growth and restructuring of

the economy towards more services

and industry as we move towards

middle income country status.

It is because of this great demand on

service delivery for citizens within Kigali

that challenged the government to

search for solutions on how this will be

managed with future population

growth.

This is why the Government, as laid out

in EDPRS II, looked at developing

secondary cities in order to “off-load”

the pressure on Kigali, and as a way to

manage the needs of a growing

population while still delivering quality

service to all Rwandans.

In order to avoid undesirable

imbalance and provide a better living

to all people, Rwanda focused on

transformation of the economic

geography of Rwanda by facilitating

urbanisation and promoting six

secondary cities that are serving as

poles of growth and investment::

Rubavu, Huye, Rusizi, Muhanga,

Musanze and Nyagatare.

In implementing this priority, World

Bank has financially supported the

GoR in upgrading unplanned six (6)

secondary cities mentioned above,

which were identified as pilots to be

developed as regional centres of

growth and investment.

Today, the development of these

cities is ensuring more balanced

regional growth and opportunities for

increased access to off-farm

employment for a larger proportion of

the population.

The Government of Rwanda has

increased attractiveness of these cities

by putting in place strategic

investments and economic projects

including investment in

interconnectivity of the road network

linking urban areas, secondary cities

and affordable housing.

Many public services that were easily

available in Kigali, such as inner-city

public transport, business registration

services, specialised healthcare

services, and multiple schooling

options, are now available in other

cities.

This has made opportunities for

investment and potential for a viable

social life which attractive people to

the capital also available outside of

the capital.

While Kigali City needs continuous

support to improve management of

service provision to an exponentially

growing population becoming a

regional hub, the Government has

simultaneously supported the

development of a network of

secondary cities.

Over the last year, these secondary

cities have gained capacity to

generate finances from local

revenues to support their

Page | 29

development in line with the local

development plans.

The plan to develop secondary cities

was spearheaded by the Ministry of

Infrastructure (MININFRA) and is

anchored on prioritizing a hierarchical

network of urban and urbanizing

centres, providing services and

attracting economic activities

countrywide.

So with financial support from the

World Bank, the implementation of

“Rwanda Urbanization Development

Project (RUDP)” arose from the GoR’s

target of getting the urban population

up 35% as stipulated in its Vision 2020,

and EDPRS2 to prioritize secondary

cities as poles of economic and urban

population growth that will promote

sustainable development.

According to sources from the Ministry

of Infrastructure, in next year’s national

budget, a lot of new roads will be

constructed in all the secondary cities

and focus will be directed on industrial

zones.

This program of constructing these

roads and drainage system under the

Rwanda Urban Development Project

(RUDP) will be done in the second

phase to help in the creating more job

opportunities in these cities.

As journalists toured the six secondary

cities towards the end the first phase of

the project, sources from the Ministry

of Infrastructure revealed that 29

kilometers of tarmac roads have been

already constructed under the

funding of the World Bank worth 28

million Us dollars which is equivalent to

25 billion Rwandan francs.

According to Eng. Uwihanganye Jean

de Dieu, Minister of State in Charge of

Transport, the second phase will see

over 40 kilometers of tarmac roads

constructed in industrial areas.

“Without basing on agriculture, over

80 million francs will be invested in

infrastructure projects aimed at

developing these six secondary and

over 44,000 new jobs will be created

by the end of the project” said

Uwihanganye.

In order to change and give it a new

look to the city, construction of 3

kilometers and 894 meters of roads

and drainage system of 1kilometer

and 175 meters have been

completed in Rubavu funded by the

World Bank through Local

Administrative Development Authority

(LODA).

Rubavu has great potential for

domestic tourism. Unlike other lake

side towns, it is livelier and on average

45,000 tourists pass through Petite

Barrière on a daily basis and over

80,000 cross through Grande Barrière

on a daily basis.

Along the trail, a modern state of the

art market has been built worth 2

billion francs that will be used by

traders crossing the border.

The Branch Manager of Davis &Shirtliff

in Rubavu, Niyonsaba Thacien, said

that they have decided to open up

branches where the new

infrastructures like roads and

electricity have mushroomed and the

company has invested over 100 million

francs since 2016.

“We found out that we have markets

in Goma, Rusizi and Bukavu because

of the economic activities on the lake

and because of the frequent power

cuts in Goma, we sell many engines

and it no longer requires one to go to

Kigali for such equipment” said

Niyonsaba.

The mayor of Rubavu, Habyarimana

Gilbert says that they want Rubavu to

be the center of tourism attraction.

Page | 30

“After the new infrastructure, many

new commercial buildings have

sprung up following the district master

plan and many companies want to set

factories in Rubavu. Also through RDB,

plans are under way to construct a

five star hotel and to construct a port

that will enhance cargo business” he

added.

Investors that have started businesses

in Rubavu and other secondary cities

are saying that the business is has

improved after the construction of

these tarmac roads and that many

other will come to these cities in future.

Nikuze Anne Marie, who represents

the Private Sector Federation at

Nyagatare District thanked the

Rwandan Government for the plan to

develop secondary cities and said

that the district is developing at a first

rate.

“Considering the speed at which the

new infrastructures are rapidly

increasing, it is a sign that the future is

ours and we as PSF are ready to use

these facilities to bring economic

development to our District” said

Nikuze

“There is going to be a change in the

trend of people leaving villages to

seek work in Kigali. These cities have

the necessary infrastructure and

people should come from Kigali and

come to invest here because there is

less competition” said Kamali John

who runs a retail shop in Rusizi.

David Muvunyi a trader in Muhanga

says that the town already has the

needed new roads and lal that is left is

to construct new builds and proper

infrastructure.

“We have the good roads now and all

that is remaining is removing the old

fake buildings and also reducing the

congestion in the town center. After

that, we should have no reason to

think of Kigali as the only option when

it comes to doing business” said

Muvunyi

The assistant for economic

development at Nyarugenge District

Nsabimana Vedaste says the Agatare

project’s purpose is to rehabilitate

residences in the area.

“The 10$ million project plan is to

construct 5and half kilometers of

tarmac roads and 2 and half

kilometers of pedestrian walk ways

plus infrastructures like street lights and

water trenches for better drainage

system” says Nsabimana

He added that after these

infrastructures are put in place,

Agatare residents will benefit a lot

from the project.

“We want to avoid dirty places and

after these roads are constructed,

residents will have access to a clean

environment with less congestion and

better security because of the street

lights” he added

In Huye, residents said the

transformation of the town is changing

and they are sure that if they demolish

the old building and build new sky

scrapers, development is coming their

way.

The new mayor of Huye Ange

Sebutega said that putting in place

new roads is the first step of

development and the rest will follow.

“It is good that we are having the new

roads constructed in the city and this is

the most important step. The

construction of new buildings and

other infrastructure will definitely be

achieved” said Sebutege.

She added that the district is in talks

with land lord of commercial buildings

to see how they can rehabilitate them

in a short time.

Page | 31

Musanze has become one of

Rwanda’s most vibrant cities. This

tourism city is abuzz with business

activity. Arguably Rwanda’s second

largest city, Musanze operates twenty-

four hours a day with people trying to

make the most of its strategic location.

With these new roads and

infrastructures in Musanze, there is

going to be a lot of development says

John Hills a tourist visiting Virunga for

the second time.

“The town is looking much better and

cleaner with the new roads and the

street lights make all more lively” said

Hills

The area is home to most of the last

mountain gorillas on earth. The city is

teeming with tourists, both local and

international, as well as people en

route to or from neighboring countries.

Made-in-Rwanda Products

Available Online

A Rwandan entrepreneur has

introduced a platform that will enable

clients to purchase locally made

products online. The online portal -

‘Made in Rwanda Online (MIRO)’ will

also ensure delivery of goods once

purchased according to developer

by Alain Pacifique Nkazamurego.

Nkazamurego said that the app brings

Rwandan products to more

consumers across the world and open

more opportunities for Rwandans

producers and also saves time for

both sellers and buyers.

“Anyone can use the application at

any time and be assured that the

product will be delivered,

Nkazamurego said, even people living

abroad can easily access it since

payments are done online”.

Made in Rwanda Online operates with

different shipping companies for

delivery to clients living outside

Rwanda.

For the last four months since the

establishment of the platform, 50

companies have joined and they

have been easily connected to the

market.

“It takes zero free to join the platform

however you are charged service

free on every purchased product,”

Nkazamurego said.

‘Made in Rwanda Online’ is among

the technologies that are being

showcased at the Made in Rwanda

Expo that is happening for its 2nd

edition.

Uwamariya Assumpta, a seller on the

platform told the media that since she

joined, her products have been

known and she is able to connect with

other sellers in different countries.

“I live in Rubavu where I make and sell

wines, since I joined the Made in

Rwanda Online platform I have

received many calls from people

abroad asking me send more wines to

them,” she said adding that “My

products are now known than ever

before and the number of my clients is

growing too.

Uwamariya urged fellow Rwandans in

diaspora to continue to buying

products made from their country.

“Our products meet both quality and

quantity standards,” she said.

New e-Market Place for Made-in-Rwanda Products.

Page | 32

There are various products sold on

‘Made in Rwanda Online’

(http://www.madeinrwanda.online/ )

among them are beauty products,

books, drinks, beverages, fashion

products, handcraft products among

others.

Today, Nkazamurego, 27, has 11

permanent employees who work with

him on a daily basis. Before this year

ends, he plans to launch a mobile

application that will be more

accessible for people to purchase

‘Made in Rwanda’ products.

In 2014, the government of Rwanda

launched the Made in Rwanda

campaign to boost consumption of

locally made products; enhance

quality standards, branding and

packaging along the value chain.

How the application works

Carlène Segonde Umutoni, web

content manager at Made-in-

Rwanda Online, said that they

welcome all products including

beverages, fashion, handcrafts,

health, and home decoration.

There is also wholesale category

whereby a customer can order

products in large quantities and get

discounts. The payment system

includes mobile money, Visa or Master

card debit and credit cards.

Habineza said that people in East

African countries can pay using their

local mobile money companies.

According to Umutoni, customers visit

the website,

www.madeinrwanda.online then

choose a product they want to buy.

They will provide their details and

shipping address after which they will

be directed to a link to execute their

payment.

If the customer uses mobile money as

the payment system, they will have to

add their mobile money phone

number. The customer will get

notification telling them that they

were purchasing something from the

marketplace. The marketplace works

with DHL and Rwanda Post Office for

shipping abroad.

For local delivery, the marketplace

has been doing it internally, but

Habineza disclosed that they are

negotiating with local transport

agencies to help with distribution.

Delivery within Kigali is charged at

Rwf1000 and for upcountry the cost

can go up to Rwf 2,500 for districts like

Rusizi District.

Long-term Investment in

Renewable Energy to Trade

Rwanda's energy rollout efforts

received a boost following the

operationalization of $50 million to

catalyze private sector's investment in

off-grid energy solutions.

The fund, managed by the World Bank

and rolled out through Development

Bank of Rwanda, is expected to

facilitate the electrification of about

445,000 households in the next seven

years.

This, when achieved, will increase

electricity access in the country by

about 19 per cent. The current energy

access rate stands at about 40 per

cent.

A section of the funds will also be used

to avail credit facilities to mini-grids

and developers in the sector.

The intervention comes barely a

month after local players in the

renewable energy sector under their

umbrella body, Energy Private

Developers, had come out seeking

Page | 33

financing to help meet national

targets.

The fund will allow a section of

SACCOs, commercial and micro-

finance institutions provide affordable

loans to their clients to purchase

certified solar systems.

Dr Livingstone Byamungu, the chief

investment officer at BRD, said the

main objective of the fund is to

increase affordability and reduce

access to finance challenges.

"The main objective is to increase

affordability and reduce access to

finance challenges in partnership with

SACCOS, commercial and micro-

finance banks and mini-grid

developers," he said.

The financial institutions will be able to

access direct credit as well as credit

lines that they will, in turn, avail to

households, micro-enterprises and

small and medium enterprises.

"The target beneficiaries are

households and businesses with an

objective to replace the use of

Kerosine, diesel and dry cell batteries,"

he said.

The fund will support Tier 1 off-grid

solutions that provide a basic service

level such as lighting, radio and cell

phone charging.

"Mini-grid developers can also get

resources directly from BRD,"

Byamungu noted.

Robert Nyamvumba, the energy

division nanager at the Ministry of

Infrastructure, said the fund will go a

long way in increasing the role of off-

grid solution in national electricity roll-

out.

In the current national strategy, off-

grid solutions are meant to account

for about 48 per cent of national

energy provision while on-grid

solutions account for the rest 52 per

cent.

Off-grid solutions will particularly target

rural areas that have the least access

to energy.

"Off-grid solutions will be through mini-

grids, solar energy solutions and small

power plants. The idea behind on-grid

solutions is to focus on productive

users and users living within 37 meters

of low voltage lines to lower the

distribution losses," Nyamvumba

explained.

He noted that access to energy and

electricity remains a priority for

government in a bid to continuously

improve Rwanda's investment

climate.

In the recent World Bank Doing

Business report, the getting electricity

Indicator ranked lowest at 119 position

globally largely due to challenges of

reliable power for productive uses.

World Bank country manager Yasser El

Gammal said the intervention is

meant to boost rural electrification

efforts to expand off-grid connections

to benefit about 1.8 million citizens.

"It is expected to stimulate demand by

providing financing to households and

small businesses through financial

institutions near them that they

already have relationships with.

There is also a window to support

private sector and providers of mini-

grids to further boost capacity, thus

impacting both the supply and

demand side," Gammal said.

The intervention particularly targets

rural areas which have very low

energy access rates. Some districts

such as Nyaruguru, Nyamagabe,

Gakenke, Gisagara and Gicumbi

have less that 10 per cent energy

access and are expected to benefit

most from the latest initiative.

In a recent interview with this paper,

Page | 34

Dr Ivan Twagirashema, the

chairperson of Energy Private

Developers, said there are over 100

private sector players in the local

renewable energy sector with limited

impact largely due to financing

challenges.

In the solar energy sub-sector, there

are three major operators, Mobisol,

BBoxx and Ignite power, which have

so far contributed about 11 per cent

of national penetration. The

government has a strategy to extend

electricity to the entire country by

2024.

The new plan 7-5-2 aims at

connecting all the households in next

seven years, by 2024, connecting all

the productive users by 2022, and

ensuring that the entire capital is

connected in the next two years by,

2019.

Page | 35

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