More private sector players should embrace value addition, especially agro-processing, to tap into the growing export markets in the region and globally.

Rwanda Development Board (RDB) representative in Canada, Emmanuel Muhawenimana, said there is growing demand in Canada and across the globe for Rwandan goods, like agro-processed products, minerals and horticulture products.

"Manufacturers should take advantage of this market. However, you need to improve on product packaging and branding to be able to penetrate these markets,” he said.

Poor branding and lack of appropriate packaging have in the past affected the marketability of local goods. Muhawenimana was on Tuesday addressing the Canada export market opportunities forum organised by RDB and the Canadian trade facilitation office in Kigali.

He said logistical challenges the country faces need to be addressed to reduce the cost of doing business between Canada and Rwanda.

According to Gakima Amandine, the Rwanda-Canada trade facilitation office representative, there is a big number of immigrants in Canada, with taste for African products, which local producers should exploit.

"Almost 20 per cent of the immigrants are from Africa… This assures you a ready market,” he said.

Exporters skeptical

Despite these opportunities, some industrialists are skeptical. A source at Inyange Industries, told The New Times that it is important for Rwanda to first focus on markets where it has a comparative advantage.

"For instance, how do you start exporting milk and milk products to a country that produces more milk than the whole of Africa?”

"Besides, we need to look at the logistics involved. Otherwise, it might not be a profitable destination as much as it presents immense opportunities,” the source said.

Bella Rukwavu, the City of Kigali Agaseke project co-ordinator, said Canada presents the local handicrafts industry a huge opportunity.

"However, we need to sensitise small-and-medium entrepreneurs to ensure we have enough artifacts to sustain supply,” Rukwavu said. Currently, 80 per cent of Rwanda’s exports to Canada comprise of coffee and tea.

Statistics from central bank indicate that Rwanda’s formal exports value rose by 4.7 per cent to $599.8 million last year.

The government targets to increase exports by 28 per cent per year under the second Economic Development and Poverty Reduction Strategy (EDPRS II) to reduce the trade deficit gap which stood at $1.8 billion as at the end of last year.

business@newtimes.co.rw