In April, a group of Rwandan investors went on a business mission to the Central African Republic, with a view to exploring investment opportunities there. The team was received by high-profile personalities, including the president himself, and were encouraged to venture into the CAR market with a promise of a few incentives and other offers. For instance, they were told they’d get a tax holiday that could go up to 10 years depending on where and how much one was to invest. Rwandan businesses would also benefit from the fact that RwandAir operates flights between Kigali and Bangui, meaning movement of both people and merchandise between the two countries has never been easier. CAR is also seeing a period of relative stability and security thanks in part to the presence of international peacekeepers, including a contingent from Rwanda. The country offers a wide range of investment opportunities in such sectors as infrastructure, energy, mining, agriculture, health and education, business, and hospitality. Indeed, when the Rwandan business delegation returned home they were upbeat about the prospects of doing business in the central African nation. While still there, some of them even opened a company, the Investissement Futur de l’Afrique (IFA) Ltd, with an initial funding of $1 million and the idea was to use this as a vehicle to accelerate their entry into the CAR market. The company has since opened offices in Bangui and Kigali as well as in two of CAR’s immediate neighbours and key trading partners Cameroon and DR Congo. But, beyond that, nothing much has been done yet. Four months on, the Chairperson of Rwanda’s Private Sector Federation says they are still mobilising local businesses to be bold enough to make the most of the opportunities that the Central African Republic market represents. A few business leaders were expected to travel to CAR this week, while others are likely to travel next month. However, there is a general reluctance within the local business community to venture beyond the Rwandan market. Similar opportunities have emerged in other places, including in DR Congo and other EAC countries, but most businesses appear to be in a comfort zone and are hesitant looking beyond Rwandan borders. In a way, there have been some improvements over the years with more and more businesses looking even beyond the African continent, but this is mostly for those involved in the trading of goods. This needs to change. In the current era of globalisation, businesses need to be bolder and venture into foreign markets with conviction. This is even more relevant in the context of the African Continental Free Trade Area framework, with the trading phase having started in January this year.
