Embracing new payment systems could boost Rwanda’s competitiveness

The East African Community (EAC) member states, including Rwanda, continue to implement regional trade policies that aim to improve the business climate in the bloc and boost the region’s competitiveness. These policies are also meant to ease access to landlocked countries of region as well as reduce cost of doing business. This and other national reforms have meant that the country is always performing impressively in the annual World Bank doing business rankings. Rwanda has for the past few years been credited for her good business climate and innovations that have eased processes of paying taxes, registering and opening up of new enterprises. The single customs territory, the one-stop border posts, the 24-hour border operation, introduction of the Rwanda electronic single window have all enabled more businesses to flourish than ever before. Also, the move to implement the East African Payment and Settlement Systems Integration Project (EAC-PSSIP) comes at the right time, when the region is trying to operate seamless facilities to reduce the cost of doing business in the EAC region. The project is expected to put in place integrated real time gross settlement systems in the region to ease payment processes and enhance accountability. It is also aimed at creating a common platform that will allow traders to receive payments in real time and in local currencies, inching closer to a single financial market. When the system comes into effect a few months from now, traders will no longer have the need to convert currencies as is the case today, where one has to change from one currency to another and lose money and time in the process, the new system will support all currencies. This is a better opportunity that needs to be embraced by Rwandan small-and-medium businesses, travelers and investors who make high-value payments across the borders. However, as the country unveils more business facilitation initiatives, we should not sit back and wait to be overwhelmed by competition from outside. Let’s together embrace and utilise the benefits that come with the many trade facilitation drives and make Rwanda a better place to do business. The writer is the head of media and customer relations at Rwanda Revenue Authority