Inside Rwanda’s push to eliminate non-tariff barriers, boost regional trade
Saturday, December 21, 2024
Minister of Trade and Industry, Prudence Sebahizi, delivers remarks at a high-level dialogue aimed at addressing the elimination of NTBs in Rwanda on Thursday, December 19. Emmanuel Dushimimana

Non-tariff barriers (NTBs) pose challenges to regional and international trade by hindering the movement of goods and services and curtailing economic opportunities across borders. In Rwanda, these barriers manifest as bureaucratic hurdles, regulatory inconsistencies, and inefficiencies that inflate costs, delay deliveries, and undermine competitiveness. Importers, exporters, and transporters in Rwanda often grapple with navigating these complex systems while striving to expand cross-border trade.

ALSO READ: Intra-EAC trade remains low on non-tariff barriers

Against this backdrop, stakeholders convened on Thursday, December 19, for a high-level dialogue aimed at addressing the elimination of NTBs in Rwanda. The event brought together exporters, importers, transporters and policymakers to explore practical solutions to these trade obstacles.

The dialogue was organised by the Feed the Future Rwanda Boneza Ubucuruzi Activity (RBUA) in partnership with the Ministry of Trade and Industry and the Private Sector Federation.

ALSO READ: Experts on how digitalisation can drive cross-border trade, expand African exports

Feed the Future Rwanda Boneza Ubucuruzi Activity provides strategic technical assistance to the National Trade Facilitation Committee (NTFC), and offers additional support to institutions like the Rwanda Revenue Authority (RRA) among others to enhance the automation of trade services and promote a transparent regulatory environment.

"Yes, non-tariff barriers are embedded in our regulations, rules, and laws. Sometimes, they are part of routine processes but become barriers when they restrict trade, cause delays, or add unnecessary costs to doing business. That’s why constant dialogue is essential, allowing the private sector to report where NTBs are negatively impacting their operations,” said Prudence Sebahizi, Minister of Trade and Industry.

ALSO READ: NTBs cost region over Rwf20 billion, threatening intra-EAC trade

Sebahizi further explained that while many NTBs are initially introduced as protective measures—such as safeguarding public health, the environment, or security—ongoing review is necessary. "This dialogue ensures these barriers are consistently reported, monitored, and eliminated where they are no longer serving their purpose but instead creating challenges,” he noted.

When asked about actionable outcomes from the dialogue, Sebahizi emphasised steps being taken to enhance service delivery. "The government has already made decisions to reduce the time required for service provision across agencies. For instance, the concept of one-stop border posts has been implemented to centralise services. If five government institutions are involved in delivering a single service, they must coordinate through the one-stop border post to eliminate the need for private operators to move between multiple offices," he explained.

He added that the cost of services has been reviewed to align fees with the service provided rather than basing them on the value of goods. "This shift will significantly reduce costs for services that were previously more expensive."

Duplication of services has also been addressed; he noted. "Each service will now be handled by a single institution. Where we previously had duplications in inspections, certificates, or fees, these issues have been identified and resolved. Going forward, there will be no duplication in government services.”

The USAID Rwanda Economic Growth Office Director, Mrs. Jessica Torrens-Spence, reaffirmed USAID&039;s commitment to supporting the Rwandan government in its efforts to eliminate non-tariff barriers (NTBs). Speaking during the high-level event, Mrs. Torrens-Spence highlighted the critical role of addressing NTBs in fostering regional trade, enhancing economic growth, and improving livelihoods.

"USAID remains steadfast in its commitment to supporting Rwanda’s economic growth and trade. Our focus includes improving operational efficiency, reducing bottlenecks, and creating a conducive environment for businesses to flourish. Through the Feed the Future Rwanda Boneza Ubucuruzi Activity, we are working in close collaboration with key partners, including the Ministry of Trade and Industry, the Rwanda Revenue Authority (RRA), and the Rwanda Inspectorate, Competition, and Consumer Protection Authority (RICA), among others, to tackle these challenges. Together, we aim to streamline processes, enhance capacity, and address critical gaps affecting cross-border trade”.

Jackie Zizane, Chief of Party for the Feed the Future Rwanda Boneza Ubucuruzi Activity, a USAID-funded project focused on facilitating cross-border trade, emphasised the programme’s goal of tackling trade challenges.

Participants during the NTBs event organized by Feed the Future Rwanda Boneza Ubucuruzi Activity

"One of the key objectives is to eliminate non-tariff barriers by working closely with the Government of Rwanda through the Ministry of Trade and Industry. These barriers often hinder traders from operating seamlessly across borders. By bringing together stakeholders, we aim to foster dialogue, address these issues, and collaboratively find lasting solutions,” Zizane said.

She added, "From today’s discussions, we’ve already identified some solutions, which demonstrates that the conversation has been both meaningful and productive.”

When asked about advancing a system to harmonise and report non-tariff barriers in real time, Zizane pointed to ongoing efforts. "First, we need to maintain this dialogue, where stakeholders meet, discuss, and resolve challenges directly. Additionally, there are trade systems like the Trade Transaction Portal, which allows traders to submit trade documents at once and receive feedback from various institutions about the status of their transactions.

The dialogue was organised by the Feed the Future Rwanda Boneza Ubucuruzi Activity (RBUA) in partnership with the Ministry of Trade and Industry

"Another platform, which is what you’re referring to, enables traders to report non-tariff barriers encountered along trade corridors. This system is accessible via SMS, allowing traders to send a message describing the issue they’ve faced. The Ministry of Trade and Industry, which hosts the platform, either resolves the issue directly or escalates it to the relevant institution for action,” she explained.

The dialogue not only encouraged productive exchanges but also laid the groundwork for integrating trader feedback into actionable policies. These discussions are expected to shape Rwanda’s National Strategy on the Elimination of NTBs (2025-2030), currently under review.

The business community, actively engaged in both regional and international trade, gained valuable insights into the persistent non-tariff barriers (NTBs) they face. Through direct interactions with policymakers and representatives from the private and public sectors, participants explored practical, long-term solutions.

They also reviewed findings from the Trade Regulatory Assessment Study, commissioned by the RBUA and conducted by Vanguard Economics. This study provides a comprehensive database of NTBs affecting traders within the East African Community (EAC) and domestically, serving as a critical resource for the revised strategy.

While countries often use NTBs as tools to manage trade volumes and align with political and economic interests, the complete elimination of such barriers remains a complex challenge. However, traders were encouraged to leverage online tools to report NTBs in real time, as these mechanisms have proven effective in resolving specific issues. A summary of critical NTBs and proposed interventions, based on the assessment findings, will further guide efforts to address trade obstacles and enhance cross-border commerce.

Jessica Torrens-Spence the USAID Rwanda Economic Growth office Director speaks at the meeting in Kigali
Jackie Zizane Feed the Future Rwanda Boneza Ubucuruzi Activity Chief of party addresses delegates at the dialongue in Kigali

The event brought together exporters, importers, transporters and policymakers to explore practical solutions to these trade obstacles