AfCFTA: How Rwanda plans to tap into the continental market

Rwanda's exports to Africa have seen a significant surge of almost 50% over the past five years, a promising trend that has sparked optimism within the country's economic landscape. With the African Continental Free Trade Area (AfCFTA) now in effect, Rwanda is strategically positioning itself to leverage this momentum and boost its exports to the African continent from $1.6 billion to an ambitious target of $5 billion within the next decade. Diane Sayinzoga, the Head of Special Economic Zone and Export Facilitation Department at the Rwanda Development Board, shed light on the country's proactive approach towards capitalizing on the opportunities presented by the AfCFTA. As one of the early adopters of the continental free trade agreement, Rwanda has been actively engaging stakeholders, including the private sector, civil society, and government institutions, to carve out a comprehensive strategy to maximize the potential of the continental market. Through extensive consultations and mobilization efforts, Rwanda has rallied support for its export-driven agenda, particularly focusing on key sectors such as manufacturing and SMEs. The country has been conducting workshops and webinars to educate and engage the private sector on the benefits of integrating into the continental market. Additionally, Rwanda has developed a national strategy for the AfCFTA, which is poised to support SMEs in fully exploiting the opportunities presented by the continental free trade area. In light of the COVID-19 pandemic, which has disrupted global trade dynamics, Rwanda has launched a recovery fund to assist businesses affected by the crisis, ensuring that the country stays on course to achieve its export targets. Despite the challenges posed by the pandemic, Rwanda remains resolute in its commitment to driving economic growth through exports, with a keen focus on enhancing the competitiveness of local industries and fostering job creation. The tax incentives and support measures provided by the government aim to offset the impact of reduced business activity and stimulate growth in key sectors. One of the critical pillars of Rwanda's export strategy is the emphasis on infrastructure interconnectivity, acknowledging the vital role that efficient transportation networks play in facilitating international trade. Rwanda is working closely with stakeholders, such as Rwanda Air, to subsidize transport costs and improve connectivity to key markets across Africa. The development of the Bugesera airport is expected to further enhance transport links and reduce logistical barriers for exporters in Rwanda. As the country gears up to expand its exports to $5 billion over the next decade, SMEs are positioned as key players in driving this growth trajectory. RDB and the government are actively supporting SMEs through capacity-building initiatives, access to finance, networking opportunities, and technology transfer collaborations with investors. By empowering SMEs with the necessary skills and resources, Rwanda aims to create a conducive environment for small businesses to thrive and capitalize on the burgeoning opportunities within the AfCFTA framework.