Rwanda’s Trade Policy to Address Long-standing Challenges
Rwanda is undergoing a significant revision of its trade policy to address long-standing gaps that have hindered the country’s trade performance and competitiveness. The updated strategy aims to tackle several critical issues, including a narrow and low-value-added export base, limited diversification of products and markets, weak links between investment and export growth, and an underdeveloped services trade sector.
According to the Ministry of Trade and Industry, the revised policy will also focus on reducing high trade logistics costs, improving the competitiveness of micro, small, and medium enterprises (MSMEs), increasing the participation of women and youth, enhancing climate resilience in trade, and improving access to trade finance and export insurance.
Doreen Ntawebasa Hategekimana, Director General of Trade and Investment at the Ministry, highlighted that the new policy aligns with national development priorities such as Vision 2050 and the National Strategy for Transformation (NST2). These strategies emphasize industrialization, value addition, and export-led growth.
The policy integrates complementary frameworks, including the Industrial Policy (2024-2034), the National Export Strategy II, and the Private Sector Development and Youth Employment Strategy. It seeks to promote inclusive, sustainable, and resilient trade development that benefits all segments of society.
Additionally, the policy aims to strengthen Rwanda’s participation in regional and global trade frameworks, such as the East African Community (EAC), Common Market for Eastern and Southern Africa (COMESA), African Continental Free Trade Area (AfCFTA), and the World Trade Organisation (WTO).
Innovative Elements of the New Trade Policy
The new trade policy introduces several innovative elements aimed at transforming Rwanda’s trade ecosystem. These include:
- The establishment of a digital trade and e-commerce framework aligned with the AfCFTA Protocol on Digital Trade.
- The development of a dedicated services trade strategy.
- Targeted initiatives to support women, youth, and MSMEs in accessing trade opportunities.
It also emphasizes the integration of climate-smart and green trade initiatives, such as promoting organic and fair-trade exports. Furthermore, it aims to expand trade finance, export credit, and insurance mechanisms to enhance access to financing for exporters.
Enhancing Trade Facilitation and Competitiveness
To boost trade facilitation and competitiveness, the policy proposes new interventions, including:
- Setting up legal and regulatory frameworks for e-signatures, e-payments, and data protection to enable digital trade.
- Supporting SMEs to engage in e-commerce platforms and use digital trade finance tools.
The policy also promotes eco-commerce and environmentally sustainable value chains, strengthens simplified trade regimes and cross-border infrastructure to support small-scale and informal traders, and expands services exports in sectors such as ICT, tourism, logistics, and professional services.
Stakeholder Consultations and Feedback
The review of the trade policy was informed by consultations involving key stakeholders, including government institutions, private sector players, and development partners. This collaborative approach ensures that the policy reflects the needs and challenges of various sectors.
Insights from Industry Leaders
Frodouard Kabano, Managing Director of Geomining, highlighted challenges in mineral exports, particularly transportation and cargo security. He noted that the high cost of products makes them vulnerable to theft during transport. Additionally, a lack of trust between exporters and foreign buyers remains a barrier, as most exporters prefer to ship only after receiving payment, while foreign buyers prefer to pay once goods reach the port.
Aimee Dusabe Bahizi, Managing Director of Gitesi Coffee Washing Station, emphasized the need for value addition in the coffee sector. She pointed out that transport costs and limited access to finance remain significant challenges. She suggested that the new policy should strengthen support for farmers.
Herman Uwizeyimana, General Manager of Fisher Global, highlighted issues related to access to finance and investment. He mentioned that export bonds have become expensive, and cash crops require large investments, leaving only financially strong players in the market. He also pointed out delays in quality certification, which pose a burden for exporters.
Marry Nyangoma, Operations Manager at Nyamirambo Women’s Centre, noted that limited market awareness and access to quality raw materials are major challenges for small producers. She suggested that improving e-commerce could boost sales and make transactions easier.
Jean Paul Tumwamini, Managing Director of LIZA Coffee Washing Station, highlighted challenges facing local coffee producers, including a shortage of markets and limited knowledge about contracts. He suggested establishing a hierarchy among exporters and building storage facilities to support producers.