How Rwandan firms can produce for the EAC market competitively

No one can dispute the political, social and economic benefits Rwanda has so far realised from its membership in the East African Community (EAC) bloc. 

Tuesday, May 20, 2014
James Buyinza

No one can dispute the political, social and economic benefits Rwanda has so far realised from its membership in the East African Community (EAC) bloc. These could include, but are not limited to, a good working relationship between the five member states, strengthening of economic ties, easing the process of doing business within the EAC bloc and facilitating free movement of goods and labour.

These developments have created immense opportunities for Rwandans, especially the business community, skilled people and professionals. It is now easy for a Rwandan to look for better jobs across EAC. 

Presently, one can also move freely and transact businesses with ease trade facilitation tools such as the single customs territory, that allows cargo entering EAC through Mombasa to be cleared at the entry point and allowed to proceed to the country of destination with no further roadblocks; the ongoing preparation for operationalisation of the single customs territory along the Central Corridor (Dar es Salaam-Kigali), establishment of one stop border posts, construction of EAC railway network and many other benefits in the offing.

These opportunities and benefits come without challenges though. For instance, managing the competition within the business environment and outcompeting ‘locals’ for job openings.

For Rwandan entrepreneurs, EAC has opened avenues for them, but this also challenges us to be more innovative than ever before, produce goods that are competitive, not only on the Rwandan market, but across the trade bloc and other markets. Does the quality meet standards? Do we make attractive packaging for our products and sell the goods at competitive prices? Do we produce enough quantities to satisfy demand all the time? 

We must always be on top of things to ensure we know what the market wants. 

Though our industries are still relatively young compared to those in Uganda, Kenya and Tanzania, we must devise means to ensure quality and competitive prices, as well as produce to sustain market needs. 

The concerned ministries  and government agencies could also see how they can reduce the cost of production to attract more industries into the local economy to augment our production capacity.

Entrepreneurs should also analyse the competition; study the market trends so as to produce what is demanded by the market instead of just manufacturing products that will not be bought.

Opening up representative stores in other EAC countries is yet another chance to market products as this would help consumers get a taste of Rwandan goods.

However, the country still needs to improve the power sector and produce sufficient electricity to ensure constant supply. 

This is essential for industrial growth and if we are increase local production capacity of our businesses. Remember, expensive power can easily affect the competitiveness of ‘Made in Rwanda’ goods on the regional market. 

Hopefully, with the current government and private sector investment in new power projects, we will soon have enough electricity to keep our industries running, and at low operational costs. 

This is key if local goods are to compete on the regional, continental and global markets. 

It is important to always keep in mind that this requires collective efforts of all stakeholders, including the government and the citizenry at large.

The writer is the head of media  and customer relations at Rwanda Revenue Authority