Rwanda’s exports still low – Senate Committee

RWANDA’s export base is still low with the country registering less than five percent in exports, the Senate heard recently. Sen. Spéciose Ayinkamiye, who heads the Committee on Economic Development and Finance, told members of the Senate that for exports to improve, there was need to pay special attention to production. “The issue that needs special attention and a clear policy and strategy to increase production and the competitiveness of the locally produced products,” she said. Ayinkamiye, who was presenting the findings of her Commission on exports, said that Rwanda still lagged behind in exports compared to imports. “In 2006 alone, Rwanda exported products to 79 countries and imported from 132 countries. In 2007, it exported to 87 countries and imported from 147 countries while in 2008, Rwanda exported products to 85 countries and imported from 101,” she said. The Vice President of the Commission’ Senator Chrysologue Kubwimana, explained that the imports were high because of the lack of capacity within the country’s production industry. “There are imports that we still have to purchase because the industry here still lacks quality products like windows, doors and tiles. 75 percent of the imports are used in industries, offices and in construction,” he said. Ayinkamiye also explained that Rwanda has the potential to carry out a lot of business with other countries if the export base improved. “We have been doing very well with neighbouring countries, notably, the Democratic Republic of Congo, with which we make at least Rwf12 bn annually in border trade. Rwf 2 bn of this money is from the sale of cows,” she said She, however, said that there were still issues like lack of a clear policy on crops that have a high potential and lack of government’s involvement after production. Senator Rwigamba Balinda, requested to know why the issue of funds was being mentioned yet measures had previously been taken to address it. “You are saying that potential exporters have problems accessing funds and yet there are millions “sitting” in banks meant for that particular purpose, like the $10m from the Rural Investment Facility (RIF) and other funds from banks like the Rwanda Development Bank (BRD). What really is the problem?” he asked Ayinkamiye explained that most of the issues were being handled to enable locals a chance to pursue their business plans. Senator Joseph Karemera asked the Commission what the government was doing in line with exporting knowledge to other countries. “Our country is not big, and according to vision 2020, we are focusing on having a knowledge-based economy. What is being done to achieve that and exporting it to other countries,” he asked Kubwimana explained that what could be done for now was to speed up the process of programs like ICT that have been introduced in schools because the government has a clear education policy. Ends