The private sectors of Rwanda and Sweden Friday entered a partnership, opening up exchange of investments in both countries.

A Memorandum of Understanding, signed by Rwanda’s Private Sector Federation (PSF) and Swedish East African Chamber of Commerce (SWEACC), is intended to boost investment and promote trade.

According to the agreement, both parties will assist their members in establishing and strengthening business contacts through meetings and study tours with the objective of promoting the growth of trade.

Speaking on behalf of PSF, the Chief Advocacy Officer Callixte Kanamugire welcomed the new initiative adding that Rwandan investors were ready to cooperate with their Swedish counterparts in order to tap into existing opportunities in both countries.

"There is a lot we can do together and we are willing to follow up closely for better implementation of this agreement, Kanamugire said during the signing event that was held virtually.

"Rwanda is strategically located and we have enormous opportunities in different sectors including coffee and tea exports among others.”

Sweden is a Scandinavian nation that boasts of an export-oriented economy. It has built a modern distribution system and a skilled labour-force.

The country’s engineering sector accounts for over 50 percent of its output and exports, according to available data.

Timber, hydropower and iron ore constitute the resource base of the Swedish economy heavily oriented toward foreign trade.

Jan Furuvald, Chairman of SWEACC, reiterated the need to look at potential investment sectors where investors from both countries can venture into business-to-business relationships.

"I’m so excited to have this MoU signed because it will create more investment opportunities between our Countries,”

Also present at the ceremony was Christine Nkulikiyinka, the Rwandan Ambassador to the nordic countries.

The diplomat called the agreement an "important instrument” that will strengthen bilateral relations between Rwanda and Sweden.

The Swedish-Rwandan agreement comes days after PSF also agreed to bolster trade ties with the Malta Chamber of Commerce.

Founded in 2010, SWEACC was the first Swedish chamber of commerce to focus on business opportunities in Africa, demonstrating great business potential in the East African region.