Here’s how Rwanda’s manufacturing sector is managing the COVID-19 crisis

The COVID-19 pandemic has taken a toll on industries worldwide, and Rwanda's manufacturing sector is no exception. Alphonse Kwizera, Executive Secretary of the Rwanda Association of Manufacturers, shared insights on the challenges faced by the sector amidst the crisis in an interview with CNBC Africa. The pandemic brought significant disruptions to the manufacturing industry, impacting both supply chains and consumer demand. Kwizera highlighted how the simultaneous shock of reduced supply and demand negatively affected the sector. One of the key initiatives implemented to help the sector recover is the manufacturing recovery program initiated by the government. This program aims to support new investors entering the manufacturing industry and assists existing manufacturers looking to expand their operations. These efforts are essential for revitalizing the manufacturing sector in Rwanda amidst the challenges posed by the pandemic. The manufacturing sector plays a crucial role in Rwanda's economy, contributing significantly to the country's Gross Domestic Product (GDP). Over the past decade, Rwanda has been undergoing a structural transformation from an agrarian-based economy to an industrial one. The manufacturing industry has been instrumental in driving this shift, attracting foreign direct investments and bolstering the country's industrial output. However, despite its importance, the manufacturing sector in Rwanda faces several challenges. One of the major obstacles is the country's lack of access to the ocean, which increases transportation costs for manufacturers. Additionally, limited access to financial resources poses a significant challenge for manufacturers, as adequate funding is crucial for sustaining operations and growth. While the government has been working to address these challenges through various schemes and policies, progress is slow due to the inherent limitations faced by the sector. In light of the challenges, technology has emerged as a crucial enabler for the manufacturing sector in Rwanda. The pandemic has accelerated the adoption of technology, with businesses leveraging e-commerce platforms to overcome disruptions caused by lockdowns. Furthermore, remote working has become more prevalent, showcasing the sector's ability to adapt and innovate in the face of adversity. When it comes to policy recommendations, Kwizera emphasizes the importance of reducing the cost of production for manufacturers. High production costs pose a significant barrier to growth and competitiveness in the industry. Government interventions such as the Industrial Recovery Fund (IRF) and manufacturing regulatory cover programs are aimed at mitigating these challenges and fostering the growth of the manufacturing sector. In conclusion, while Rwanda's manufacturing sector grapples with the impacts of the COVID-19 crisis, efforts are being made to support its recovery and growth. By addressing key challenges, leveraging technology, and implementing supportive policies, Rwanda aims to strengthen its manufacturing industry and contribute to the country's economic transformation.