To increase the competitiveness of small and medium enterprises (SMEs) in international markets, governments must ensure that these businesses are financially included and are well-connected to markets. 

Arancha Gonzalez, the executive director of the International Trade Centre, said other than creating a conducive business environment that makes it easy for businesses to start and operate, financial inclusion and market intelligence would link up to international value chains.

Gonzalez was yesterday speaking to The New Times on the sidelines of a session dubbed, "Unlocking SMEs competitiveness for diversification,” at the ongoing 2014 World Export Development Forum in Kigali.

"SMEs need financial means at their disposal through financial institutions, whether traditional forms such as banks or through more innovative sources,” Gonzalez said.

"Invest in connecting them to markets, help them find the markets. This can be done through investing in trade and market intelligence,” she added.

ITC, a subsidiary of the World Trade Organisation, is a co-organiser of the two-day global trade forum.

Gonzalez, however, noted that all this should be done bearing in mind gender and youth dimensions to leverage the specific challenges that the groups face.

Trade and Industry minister Francois Kanimba said Rwanda’s SME base had grown widely as a result of the creation of a conducive business environment and ensuring that SMEs have access to capital.

"Through embracing ICT the Rwanda Development Board has managed to set up a computerised online system that enables businesses register in about six hours regardless of where they are,” Kanimba said.

"The impact of this has been a 30 per cent increase on annual basis of businesses registered in the last six years.”

The minister added that part of the SMEs had moved to become formal enterprises as a result of the improvement.

Establishment of effective modalities for registration of property and effective tax administration had further eased processes such as transfer of property, further improving the business environment, the minister noted.

Easing access to capital

Kanimba said to ease access to capital, there has been an overhaul in the banking and mortgage industries and the establishment of a comprehensive credit information system where financial institutions can access records of clients while extending credit.

"In the last six years, our exports have grown by 20 per cent per annum in a consistent manner,” he said.

"Further, the growth has not been from traditional export of commodities, traditional exports such as coffee, minerals and tea contribute only about 49 per cent of export from previously when traditional exports contributed more than 70 per cent of the export base,” the minister added.

New products mainly include exports of manufactured products in regional countries.

Ashish Thakkar, the founder and managing director of Mara Group, who also appeared on the panel, said public policy was an important catalyst for SMEs to compete internationally as they would improve the environment they operate in.

Thakkar underlined the importance of capacity building and skills development for emerging entrepreneurs for them to effectively manage their enterprises in changing times.

editorial@newtimes.co.rw