UK-Rwanda set to double trade in new push for investments

In a bid to bolster trade relations between the United Kingdom and Rwanda, the UK's High Commissioner to Rwanda, Omar Daair, shed light on the opportunities present in the African nation. The dialogue, facilitated by CNBC Africa, delved into the avenues for collaboration and the top priorities on the UK government's agenda. Daair emphasized the surge in trade over the past five years, with exports to and from the UK on a steady rise. Despite the progress, he pointed out that the trade volume remains relatively low, attributing it to a lack of awareness regarding the business prospects in Rwanda. The ongoing forum serves as a platform to showcase these opportunities and foster stronger ties between British businesses and the local community. Reflecting on the sectors of interest, Daair highlighted six key areas for investment: agriculture, manufacturing, infrastructure, financial and professional services, critical minerals, and the green economy. The UK's longstanding relationship with Rwanda in agriculture, particularly in tea, coffee, and flowers, positions these sectors as ripe for further exploration. In the quest for balance in bilateral trade, Daair acknowledged the current skew in favor of the UK but expressed optimism for improved trade dynamics. Notable initiatives like the Developing Countries Trading Scheme, enabling duty-free and quota-free exports from Rwanda to the UK, have set the stage for enhanced trade partnerships. Daair recognized the burgeoning wave of African innovation, particularly in tech and services, as a promising avenue for collaboration. The UK aims to engage in reciprocal trade relationships, tapping into Africa's growing population, expanding middle class, and skilled workforce. The forum has attracted a diverse pool of investors, with promising prospects in critical minerals, agriculture, and other sectors. Daair highlighted notable collaborations like Rio Tinto's MOU with Rwanda and Beebox's decision to relocate its global headquarters to the country. While acknowledging the shift post-Brexit, the UK government's keen interest in strengthening ties with Africa underscores the continent's strategic importance as a trade partner. Daair emphasized the need for value addition and value-added exports, stressing the role of economic partnership agreements and support mechanisms like the Developing Countries Trading Scheme. The UK is investing in technical assistance and infrastructure to facilitate in-country value addition, exemplified by success stories like Gorilla Coffee and Pink Mango. Collaborative efforts in packaging, transport, and cargo facilities are poised to accelerate the growth of value-added exports from Rwanda to the UK, signaling a promising avenue for mutual economic advancement.