High cost of imported packaging materials and the complex process to get standards certification is hurting small and medium enterprises in production of different products mainly food, beverages and cosmetics.
The challenges were expressed by the enterprises currently exhibiting their products at the ongoing Rwanda International Trade Fair taking place at Gikondo Expo Grounds.
The trade fair started on December 11 running up to December 31, 2020 bringing together SMEs and established players in the country.
The challenges, they say, affects their efforts to expand production and reach international markets.
"We face difficulties in accessing international markets in Europe, Asia and the USA as startup companies. The process to get standards certification is very expensive. It requires a lot of financial investment. We request the Trade Ministry and the Rwanda Standards Bureau to help us financially to cope with the challenges,” said Nadege Uwamahoro, the Managing Director of BRAIMPIRE Company which produces coffee.
Furaha Utamuriza, the distribution manager of Green Treasure Ltd which processes chili in Kimisagara Sector, Nyarugenge District added that the high cost of imported packaging materials is another hindrance to SMES in food production.
"It is not easy to get quality bottles for packaging our finished products,” she said.
The enterprise produces 8,400 bottles of 60 grams of Chili every month.
"We started processing pepper three years ago and we used to import quality bottles from Kenya. Things have become worse due to the Covid-19 pandemic since it is not easy to import bottles from Kenya. We hope that they can be locally produced,” she said.
Call for local packaging production factories
The enterprises are requesting the government to facilitate the establishment of local factories to manufacture needed packaging materials for locally processed food and beverages.
"This could help to reduce imports,” she noted.
Alphonse Nshimiyimana, The Managing Director of BINA Group that produces nutritious flour from locally grown cereals said they have not yet obtained Standardization certificate (S-Mark).
"We are in process to get it. We were put in Zamukanubuziranenge-a project to help us get standards certificate. However we are still facing challenges in getting quality packaging materials due to financial constraints which lead us to fail to comply with standards guidelines. Rwanda Standards Board (RSB) promised to give us certificates of production while we wait for the S-Mark,” the manager said.
"We produce three tonnes per month but are yet to afford standard machines, adequate production skills and modern infrastructure to increase production, he added.
SMES in hygiene materials and cosmetics production are also expressing that the high cost of imported raw materials, packaging and long journey to get a standard certificate are affecting them.
"We have been producing liquid soaps, toilet soaps, shampoos, liquid hand soaps and others. Some reject our products because we have not yet obtained S-MARK. We really need support,” added Marie Laurence Umuremyi working for NOLIVER Hygienic Company in Kicukiro District.
Regis Umugiraneza, Chief Executive Officer of CARL Group Company that produces bread from Sweet potatoes who is also the Vice-Chairperson of the Chamber for Young Entrepreneurs in the Private Sector federation (PSF) said that the challenges have been raised severally as they seek support.
"We are working hard to connect these manufacturers with the Rwanda Standards Board to ease and fast-track the process of getting certification so that they are able to also export their products to international markets,” he noted.
Raymond Murenzi, Director General of Rwanda Standards Board said that they have learnt that many small manufacturers are facing financial constraints and do not have information on how to get standard services.
"Under the initiative ‘zamukanubuziranenge’ we will continue to train young entrepreneurs as well women and persons with disabilities with small enterprises so that they are able to get standards certificates,” he promised.
"Various SMEs products were certified and are on the market. We are going to organize training for others to help them in the process of getting certification. We realized that many face financial constraints to access those services and we will help them to pay in installments so as to manage to get the needed standards,” he added.
Louis Antoine Muhire, a Project Manager at the Made in Rwanda Secretariat in the Ministry of Trade and Industry (MINICOM) said that more efforts are being injected in helping local manufacturers get to the needed local and international standards as well as linking them to markets and training.