AfCFTA: Assessing the preparedness of Rwanda’s private sector

The private sector in Rwanda is gearing up to fully embrace the trading and investment opportunities offered by the African Continental Free Trade Area (AfCFTA). Robert Bapfakurera, the Chairman of the Rwanda Private Sector Federation, shared insights on the country's preparedness and the key sectors that could give Rwanda a competitive advantage in the AfCFTA. As Rwanda works towards improving its trade balance and increasing exports, challenges such as quality and quantity, as well as the impact of COVID-19 on businesses, are being addressed. With Rwanda being a member of various trading blocks in Africa, including COMESA and the East African Community, the country has been familiar with regional trade benefits. However, the AfCFTA presents a new frontier for Rwanda's private sector. Since the official launch of the AfCFTA in Rwanda in January, efforts have been ongoing to enhance the country's capacity to export and import from other African nations. Bapfakurera highlighted the significance of sectors like food processing, textiles, and manufacturing in driving Rwanda's competitiveness. The Chairman emphasized the importance of focusing on quality and value addition to enhance Rwanda's exports. Despite facing a negative balance of trade position with more imports than exports, Rwanda is making strides in improving its trade relations with other African countries. The government's efforts to incentivize investors targeting exports are expected to contribute to shifting the trade balance over time. Rwanda's strategic focus on key markets like Southern and West Africa indicates the country's intention to tap into markets with strong transport links. Bapfakurera mentioned countries like Botswana, Namibia, and South Africa as attractive destinations for Rwandan businesses. Moreover, the Chairman highlighted the potential within the Central African region and the East African Community, which Rwanda has been actively engaged with. The conversation around value addition and enhancing the processing sector in Rwanda is gaining momentum within the private sector. Bapfakurera noted that innovation and a focus on quality over quantity are essential for the country's value chain development. With over 70% of the population engaged in the agricultural sector, investing in value addition could unlock significant opportunities for economic growth. The COVID-19 pandemic has posed challenges for Rwanda's businesses, with sectors like tourism and hospitality experiencing significant disruptions. The recent lockdown in Kigali has further impacted businesses, limiting activities and interactions. As businesses navigate the effects of the pandemic, the focus is on resilience and recovery strategies to ensure a sustainable bounce back. In conclusion, Rwanda's private sector is actively preparing to leverage the opportunities presented by the AfCFTA. By addressing challenges, enhancing value addition, and adapting to the evolving business landscape in the wake of the pandemic, Rwandan businesses are set to carve out a competitive position in the African market.