Trade & Industry Minister Hakuziyaremye on the state of women-led businesses in Rwanda

Rwanda, like many other countries, has felt the impact of the COVID-19 pandemic on its trade and industrial sectors. The Trade and Industry Minister, Soraya Hakuziyaremye recently sat down for an interview with CNBC Africa to discuss the current state of women-led businesses and efforts being made towards recovery. The pandemic brought about a significant reduction in demands for products both domestically and internationally, affecting key export markets such as the European Union and the Middle East. This led to a slump in Rwanda's GDP by close to 12 percent in the second quarter of 2020. However, there has been a slow recovery since the third and fourth quarters, with an overall decline of about 0.8 percent. The country has seen some momentum in export markets as they slowly recover, although pre-COVID levels are not expected until the end of 2021. The disruption of supply chains, particularly in the industrial sector where raw materials and equipment mainly come from Asia, also presented challenges. Despite these obstacles, efforts and cooperation on a regional basis helped to facilitate the movement of goods and mitigate the impact on trade. The Minister emphasized the importance of monitoring how other countries' economies are faring as it directly impacts Rwanda's trade flows. The ongoing vaccination campaigns both domestically and in key partner countries are seen as crucial for the return to normalcy in trade. To support the recovery of the manufacturing sector, the Rwandan government introduced a Manufacture and Build to Recover program. This initiative aims to provide incentives for major construction projects that utilize locally made construction materials. By waving input duties for necessary materials and equipment, the government hopes to boost the manufacturing and construction sectors. The recent opening of a second cement factory in the country also aligns with efforts to reduce the import bill on cement and promote local production. In terms of foreign direct investments (FDIs) flowing into the manufacturing and trade sectors, the Minister highlighted the importance of offering reassurance and incentives to both local and foreign investors. One notable project involving a French group investing in a new commercial center and hotel in Kigali demonstrates that significant investments are still taking place despite the challenges posed by the pandemic. The goal is to achieve a 5% GDP growth in Rwanda in 2021 and gradually increase to 6% in 2022 and eventually return to the pre-pandemic growth level of 8% within three years. The African continental free trade area agreement, which Rwanda began trading under on January 15, also plays a vital role in the country's recovery efforts. This agreement allows for preferential treatment and reduced tariffs on products made in Africa, providing opportunities for Rwandan businesses to expand their reach within the continent. Rwanda's readiness to start trading under this agreement was showcased through administrative preparedness and the issuance of certificates of origin. Despite the challenges posed by the pandemic, the Minister emphasized the resilience of Rwanda's agricultural sector, which has not been hit as severely as other industries. Policies promoting food security, increased agricultural production, and value addition have ensured the sector's stability and the ability to export within the region. Overall, the government is working on multiple fronts to mitigate the economic impact of the pandemic, attract investments, and fuel economic recovery.