Rwanda: Private sector optimistic after President Suluhu's visit

Rwanda's private sector is buzzing with optimism following a recent state visit by Tanzanian President Samia Suluhu Hassan. The visit, a two-day affair, has ignited hopes of a significant surge in intra-trade investments between Rwanda and Tanzania. In an exclusive interview with CNBC Africa, Chairman of Rwanda's Private Sector Federation, Robert Bapfakurera, shed light on the private sector's expectations and the potential implications of this important visit. Bapfakurera emphasized the critical role of fostering a conducive business environment between the two countries, showcasing the mutual benefits that could stem from strengthened ties. Rwanda's private sector has been eyeing potential opportunities for growth and expansion in Tanzania, a nation considered a gateway for Rwanda. Port of Dar es Salaam serves as a crucial hub for Rwanda's cargo transportation, with nearly 90% of the country's cargo passing through it. However, challenges such as cargo delays have plagued the efficient flow of goods, prompting government interventions and advocacy on behalf of business interests. Bapfakurera expressed optimism that the state visit by President Hassan could pave the way for improved relations, leading to smoother operations for private sector players. Addressing the issue of business mobility, key Memorandums of Understanding (MOUs) were inked during the state visit, including agreements related to immigration policies. Bapfakurera highlighted the significance of facilitating cross-border movements and streamlining working visa processes to enhance business engagements. He acknowledged the hurdles faced by businessmen, such as expensive visa fees, and stressed the importance of reducing barriers for seamless trade activities. Trade statistics between Rwanda and Tanzania indicate a trade imbalance, with Rwanda exporting around $295 million worth of goods to Tanzania, while Tanzania's exports to Rwanda stand at $523 million. Despite this gap, Bapfakurera remains optimistic about the growth trajectory, citing Rwanda's progress in various sectors and its potential to narrow the trade deficit over time. Looking ahead, Bapfakurera outlined the abundant opportunities that Rwanda's private sector envisions in the Tanzanian market. Cross-border trading, access to raw materials, and prospects for industrial collaboration were highlighted as key areas of interest. Rwanda, a landlocked nation, relies on Tanzania as a vital source of raw materials, including agricultural produce like rice and maize. In return, Rwanda aims to bolster its industrial output and supply value-added products to Tanzania, fostering a symbiotic trade relationship. In conclusion, the state visit by President Hassan has set the stage for a new chapter of economic cooperation and partnership between Rwanda and Tanzania. The private sector in Rwanda is poised to leverage the emerging opportunities and enhance bilateral trade relations, buoyed by the prospects of a more conducive business environment and streamlined processes. As both nations embark on a journey towards mutual prosperity, the private sector stands ready to drive economic growth and collaboration in the region.