Felicien Mutalikanwa, the managing director of MINIMEX Industries, is the new chairman of the Rwanda Association of Manufacturers (RAM). Mutalikanwa replaces Robert Bayigamba, who has led the association since 2013. He will be deputised by Jonathan Hall, the Bralirwa managing director, while Isabelle Uzamukunda, the Agasaro Organic chief, was elected the association’s secretary general, replacing Anne Rwigara of Premium Tobacco Industries. 

The new leadership comes in at a time when the country is looking to further expand its exports and foreign exchange earnings. So, their job is well cut out as they have the task of steering the manufacturing sector to support these goals. Rwanda’s manufacturing sector grew by 10 per cent in the first quarter, contributing Rwf78 billion to GDP up from Rwf69 billion same period in 2015.

However, pundits say the sector has the potential to drive Rwanda’s growth with right incentives. According to stakeholders, electricity costs constitute 20 to 50 per cent of the total cost of production, which affects the competitiveness of the local industry.

While handing over tools of office over the weekend, outgoing chairman Bayigamba, challenged the new leadership to focus on skills development and establishment of a data centre for members.

He noted that renewed government commitment to put in place necessary infrastructure will boost the sector’s capacity and increase its contribution to GDP.

Bayigamba said lack of skilled human capital, high cost of doing business, infiltration of sub-standard goods and poor branding are some of the big challenges local manufacturers face.

"The new leadership should therefore continue pushing for improvement of the business environment to reduce the cost of operations and become more competitive in the region,” he said.

The government has signed partnership agreements with selected manufacturers and pledged to support the sector, especially by providing the requisite infrastructure and facilities to enhance their production capacity and hence increase exports.

The move is part of concerted efforts geared at solving challenges affecting the industrial sector.

However, stakeholders say that despite the initiatives, the government’s ambitious plan of increasing exports to 28 per cent per year is not realistic and are calling for change in strategy. This is one of the second Economic Development and Poverty Reduction Strategy (EDPRS II) targets, which is expected to enhance Rwanda’s exports from 20 per cent presently.

Speaking at the event, Uzamukunda, the association’s new secretary general, said the elected team would address the challenge of packaging and product branding as part of the interventions to support the Made-in-Rwanda initiative.

"We will continue to work with partners across the region to ensure the removal of trade barriers to facilitate more investments and businesses,” Uzamukunda told Business Times in an interview.