To attain an upper middle-income status by 2035, Rwanda will have to accelerate the growth of its industrial sector, and maintain double digit annual growth in exports, officials have said.
The sector currently contributes 22 per cent to the GDP, but the number is expected to soar above 35 per cent in the next ten years.
To realise the target, a new industrial policy is in the offing, according to the Permanent Secretary at the Ministry of Trade and Industry, Richard Niwenshuti.
Niwenshuti explained that the policy spans several instruments including public investment, tax incentives, technology policy, and investment and export promotion, among others.
However, he said, coordinating these instruments to produce synergies remains a challenge.
"The new Industrial Policy aims to accelerate structural transformation, develop competitive industries and promote sustainable, inclusive growth. It focuses on high-growth subsectors, green industrialization, and including women, youth and vulnerable groups,” Niwenshuti noted.
He added; "As we transition from policy design to implementation, we look forward to continued collaboration with the International Growth Center and the EQuIP project, while also deepening cooperation with other partners such as the World Bank.”
The Permanent Secretary was speaking during an Industrial and Trade Policy conference, which convened government officials, development and academic partners, and private sector representatives, to discuss Rwanda’s industrial policy and identify opportunities to learn from global best practices.
Albert Sole, Senior Private Specialist at the World Bank said that the new policy, once realised, will be a huge milestone "because Rwanda is facing a huge challenge to transform and advance it’s growth model in having a large contribution from the private sector.”
According to Sole, the Rwandan government has done an "excellent job” over the last two decades,driving the country’s economic growth, but it has largely been financed by public investment.
"We have to work together to create an enabling business environment where the private sector can step up, gain competitiveness, create jobs, and be more business oriented,” he observed.
"The end goal is to push for an inclusive, sustainable growth"
The policy seeks to prioritise increasing local industrial production, adding value to agricultural and livestock products, and promoting the Made in Rwanda brand, among other key areas.
Local businessman Sina Gerad said Rwanda’s industrial sector continues to grow, thanks in large part to the country's ease of doing business that attracts huge foreign investment.
He warned that business owners should be ready to take advantage of the growth, by manufacturing local products to export to the wider international market.
"We need to emphasise the need for value addition with the support of local agencies. That way, we shall be able to compete on the international market,” he said.
In various panels, experts reiterated that the new policy should look to foster growth, value addition and dynamic expansion into new areas of comparative advantage where market failures would otherwise prevent or slow development.