Rwandan exporters have welcomed the recent deal between the government of Rwanda and Chinese e-commerce platform Alibaba, which will see 20 Rwandan small and medium enterprises (SMEs) on boarded to sell their products on the widely popular platform.
The deal was announced earlier on February 27 between Rwanda Development Board (RDB) and Chinese e-commerce giant Alibaba under the ambit of Electronic World Trade Platform (eWTP).
According to Zhang Entao, the Deputy General Manager of Global Gold Supplier Department of Alibaba this cooperation will not only help Rwandan local enterprises to improve the sales and exports of their products, but also facilitate their digital transformation.
Speaking to The New Times, Robert Rukundo, the chairman of Horticultural Exporters Associations of Rwanda (HEAR), welcomed the development saying that this is a great opportunity that Rwandan exporters should seize.
"This will expose our products to the world market since Alibaba is a big platform; it is accessed by millions of people with more market opportunities. This will create awareness around the quality and taste of our products,” he said.
Similar sentiments were echoed by Simeon Ngendahayo, the CEO of West Hills Coffee Roasters who produce Garuka Rwanda Coffee brand that has been traded in China.
"This will increase visibility of Rwandan coffee. Initially only Gorilla, Thousands Hills and Garuka coffee brands were able to access the platform. So, we are expecting some more clients all over the world.”
The platform opened its doors to Rwanda products in 2018 when the eWTP deal was signed between the two parties and apparently only Rwanda coffee, tea, chili sauce, and essential oils are accessible on the platform.
These, according to RDB, have made a significant contribution towards widening the country’s export base and increased the awareness of Rwandan products in the Chinese market.
Despite the challenges related to Covid-19 pandemic, some brands have since tripled their sales in the Chinese market since 2019.
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"One of the primary goals of every business owner is to find more customers and make more sales. To do this, companies need to figure out the best ways to reach customers; that is where an e-commerce marketplace comes in,” RDB said in a statement.
The agency added: "Our companies will access one of the biggest global e-commerce platforms as sellers. Rwandan companies will be under the Global Gold Supplier (GGS) membership.”
The companies will be facilitated under a tailored GGS by a team from Alibaba.com and businesses will get the opportunity to increase their sales, generating more export revenues and create jobs.
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One of the key benefits of online platforms is their ability to connect people from all over the world, breaking down geographical barriers and enabling global communication and commerce.
This has opened up new frontier of opportunities for small business and entrepreneurs, allowing them to reach a wider audience and compete with larger companies on more level playing fields.
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According to RDB, the targeted 20 SMEs will be exporting Rwandan tea and coffee but also other products can be considered if they meet criteria to enter the Chinese market.
RDB is expected to issue a call for applications for companies who are interested to be boarded on the platform. However, quality and supply capacities are some of the criteria to consider.