Ensuring best practices will attract investors, experts say

Industrialists have been challenged to ensure best business practices as this will attract international companies to Rwanda and help develop the country’s manufacturing sector, as well as create more jobs and increase exports. Dr. Etienne Musonera, a professor at School of Business and Economics at Mercer, Michigan Universities, Atlanta Georgia in the US, said the development could also strengthen small-and-medium enterprises and help drive the country’s economy towards attaining its medium-term growth objectives and reduce poverty. Musonera added that adopting best international business practices will make Rwanda competitive.“Embracing international best business standards is a must if the local manufacturing sector is to flourish,” he said during the Diaspora Investment Forum in Kigali recently.He also noted that there was a need to build local capacity and skills to support the sector.“Investors go where they can easily access skilled personnel. We also need to ensure quality and develop strategies that will attract customers rather than push customers towards our products,” he pointed out.Dr. Egide Karuranga, a professor at Laval University Business School in Canada, urged the government to invest more in research and technology infrastructure so that the country can harness the potential of its natural resources.He noted that creating global partnerships and ensuring sustained advocacy will create awareness about Rwanda’s potential and attract big investors.Manufacturing currently contributes only 19.2 per cent to Rwanda’s GDP. Industrial exports accounted for 45 per cent of Rwanda’s non-traditional exports last year, up from 36 per cent in 2011. The milling sub-sector grew by 337 per cent, earning the country $15.7m last year, beverage exports were increased by 153 per cent, fetching about $10.7m, while steel exports rose 185 per cent and raked in $3.8m. Plastics, soaps and washing detergent exports also witnessed growth over the past year.While speaking during the forum, Robert Bayigamba, the president of the Rwanda Manufacturers Association, said they have designed a new strategy to boost the industry’s capacity.“We want to engage all the stakeholders, especially helping them find ways on how they can reduce production costs and enhance product quality to access more markets,” he said.

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Ensuring best practices will attract investors, experts say