Trade & Industry Minister Ngabitsinze details Rwanda’s AfCFTA strategy

Rwanda's Minister of Trade and Industry, Jean-Chrysostome Ngabitsinze, recently spoke to CNBC Africa's Julius Bizimungu about Rwanda's strategy as it prepares to trade under the African Continental Free Trade Area (AfCFTA). As the industry sector contributed 20% to Rwanda's gross domestic product in the second quarter of 2022, the country is gearing up to tap into new trade opportunities. Rwanda was chosen as one of the pilot countries for trading under the AfCFTA, enabling them to test the effectiveness of the trade agreement and negotiation protocols. Minister Ngabitsinze highlighted that Rwanda developed a strategic plan to guide their trade initiatives, with a focus on the export of commodities. The first commodity Rwanda plans to export is coffee, with considerations for other processed agricultural products in the future. The country aims to trade with seven countries during the pilot phase, strategically selecting partners based on existing trade relationships and market dynamics. Minister Ngabitsinze emphasized the importance of preparing the necessary documentation and infrastructure to facilitate seamless trade. Additionally, Rwanda has identified key products like coffee and tea, where they hold a comparative advantage in terms of quality. The country is investing in various sectors like services, transport, and technology to enhance competitiveness in the global market. Minister Ngabitsinze discussed Rwanda's industrial agenda, highlighting the government's efforts to promote manufacturing and agro-processing. The country has incentivized investments in these sectors and aims to increase the manufacturing sector's contribution to GDP from 20% to 37% by 2024. Despite challenges such as electricity and water access, Rwanda is progressing in developing industrial parks and special economic zones to attract investors. The government is addressing issues like electricity tariffs and infrastructure to support businesses in these zones. The Minister acknowledged the challenges but assured that Rwanda is taking steps to improve the business environment and reduce production costs. Rwanda's focus on economic growth through strategic trade partnerships and industrial development positions the country for increased participation in regional and global markets.