PSF Chair, Nsengiyumva on what makes the CAR attractive to investors

The Central African Republic (CAR) has long been plagued by political instability, but despite this, businesses from Rwanda are finding numerous investment opportunities in the country. Francois Nsengiyumva, the chairperson of the Chamber of Agriculture and Livestock at the Private Sector Federation in Rwanda, sees great potential in CAR for business development, especially as the African Continental Free Trade Area comes into effect. In a recent interview with CNBC Africa, Nsengiyumva highlighted the vast opportunities available in CAR for the Rwandan business community, particularly in the sectors of agriculture and trade. One of the key points Nsengiyumva raised was the importance of raw materials for industry development. He emphasized the need for agricultural investments in CAR to secure a stable supply of essential raw materials like palm oil and cotton. By investing in agriculture in CAR, Rwandan businesses can access high-quality raw materials that are crucial for the growth of their industries. Nsengiyumva cited the example of the cotton industry in Rwanda, noting that improved access to raw materials could significantly enhance the country's textile manufacturing sector. Additionally, Nsengiyumva highlighted the potential for trade between Rwanda and CAR. He pointed out that Rwanda produces various goods, such as milk and maize flour, that could be exported to CAR. In return, Rwanda could import products like palm oil from CAR, creating a mutually beneficial trade relationship. Nsengiyumva stressed that enhancing trade ties between the two nations could be a key driver of economic growth for the Rwandan business community. One of the significant incentives for Rwandan businesses investing in CAR is the favorable tax regime provided by bilateral agreements between the two countries. Nsengiyumva mentioned that investors in rural areas of CAR can benefit from tax exemptions for up to 10 years, creating a conducive environment for business development. Moreover, importation of equipment, such as tractors, is exempt from customs duties, further incentivizing investments in the agricultural sector. Nsengiyumva also discussed the potential for skills exchange between Rwanda and CAR, particularly in the field of agriculture. By leveraging the exemptions and incentives offered by CAR, Rwandan businesses can set up agro-processing and manufacturing industries in CAR, tapping into the country's resources for mutual benefit. Nsengiyumva highlighted the possibility of using CAR's soybean production to meet the raw material needs of industries in Rwanda, showcasing the potential for collaboration and value chain integration. Looking ahead, Nsengiyumva identified the Democratic Republic of Congo and Congo Brazzaville as other countries with promising agricultural markets that could appeal to Rwandan businesses. He emphasized the strategic geographical position of these countries, which could open up vast market opportunities for Rwanda's agriculture sector. With strong regional relationships and a focus on economic integration, Nsengiyumva sees a bright future for Rwandan agriculture businesses expanding into the Central African region. In conclusion, the Chamber of Agriculture and Livestock of the Private Sector Federation in Rwanda is actively exploring investment opportunities in the Central African Republic. With a focus on agricultural development, trade partnerships, and favorable investment incentives, Rwandan businesses are poised to capitalize on the untapped potential of CAR's market. As the African continent moves towards greater economic integration, collaborations like the one between Rwanda and CAR showcase the power of regional cooperation and shared prosperity.