Focus on service exports to boost trade, Frazer

Rwanda needs to increase efforts to increase service exports and reducing inland trade costs to boost trade in the country. The advice was given by Garth Frazer, a Professor at the University of Toronto during the Second Growth Forum held in Kigali recently.He noted that focus on improving institutions of government, and openness to doing business was central to improving the country’s trade and economic growth. “Rwanda should leverage its growing perception of fighting corruption and improving institutions particularly to expand services that involve a measure of trust and,” he said Frazer believes that building a strong service sector will help address trade constraints considering Rwanda’s advantage of being a bridge between English and French speaking Africa and a strategic hub for Central Africa trade.Traders say that high transport costs incurred during transportation of goods from the port, coupled with trade barriers along the Northern Corridor which in average takes 40 percent of the total costs of goods, holds back trade.“We think if all these barriers were removed, then Rwanda’s trade will grow faster,” Theodore Murenzi, Executive Secretary of Rwanda Long Distance Trucks Association, notedBut the Minister of Trade and Industry François Kanimba, had earlier said that the government has moved to address Non-Tariff Barriers by signing bilateral trade agreements with regional member states.