Private sector urged to expand market under AfCFTA trading

Players in the private sector have been encouraged to expand their market across the continent by leveraging the ongoing pilot phase of trading under the African Continental Free Trade Area (AfCFTA). So far, in line with the pilot phase of trading under the AfCFTA that was announced in July, just one Rwandan company has started exporting coffee to Ghana and more are expected to join, according to the Ministry of Trade and Industry. The AfCFTA Initiative on Guided Trade involves other countries including; Cameroon, Egypt, Ghana, Kenya, Mauritius and Tanzania. Recently, a Kenyan company involved in battery manufacturing also exported its first batch of products to Ghana under the continental trade area framework, officials announced. In a press briefing on September 29, trade minister, Jean Chrysostome Ngabitsinze, said that business people shouldn’t limit themselves to markets available in the neighbouring countries but expand to other African countries. He however emphasized that it’s not just about jumping into trade, there are procedures that have to be adhered to and standards that should be met. “We need to support Made-in-Rwanda and reduce any inefficiency as we embark on these markets,” he added, “quality satisfaction comes with progress.” Special cargo tariff Ngabitsinze also noted that RwandAir will put in place a special cargo tariff for businesses that want to export their products under the free trade area agreement. Zephanie Niyonkuru, Deputy CEO of Rwanda Development Board, said that there are plenty opportunities for trade, not only in goods but also in services. “If you look into the number of local companies that are currently exporting services in several African countries, they are getting good money. The idea is to make sure they take advantage of these agreements that Rwanda is part of,” he said. Western African countries such as Ghana, Senegal, Nigeria, Chad, and Benin are said to present great potential for trade and investment for Rwanda’s private sector. AfCFTA, the largest free trade zone in the world, covers 54 African countries, 43 of which have already ratified the agreement, with 39 state parties officially recognised, including Rwanda. The landmark agreement, signed in Kigali in March 2018, envisions a continental market of 1.2 billion people, with a combined Gross Domestic Product of more than $3.4 trillion.

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Private sector urged to expand market under AfCFTA trading