Nigeria presents huge market to Rwanda

The recently harnessed bilateral trade relations between Rwanda and Nigeria would be another opportunity for the country as Kigali tries to transform the economy through increase in Foreign Direct Investment and stepping up exports needed to tackle trade imbalance. “Rwanda has succeeded in times of global crisis, so you have the opportunity to leapfrog in terms of investment in all sectors, Philips Foluso, Chairman of the Nigerian Economic Summit Group said during a dinner organised by Private Sector Federation and the Rwanda Development Board.The trade relations that saw a 20 man business delegation from Nigeria’s Economic Summit Group (NESG) visiting the country this week is opening the 155.2 million Nigerian market to Rwanda’s exports and imports, an act seen to bolster its fast growing trade reforms.Rwanda is experiencing a huge trade deficit that now stands at 33.9 percent with import receipts growing to US$1.5bn against US$743.5m export receipts, according to Ministry of Trade statistics.Foluso is optimistic that Rwanda will benefit from the Nigeria’s market, especially with agro- exports that are much needed by the growing population which currently depends on agro- imports for its food basket. Nigeria’s Agricultural contribution to GDP is estimated at 42 percent while Rwanda’s agriculture is contributing 33.6% of GDP.“To take this advantage, you have to have clarity on the products and services you want to offer for the Nigerian market,” Foluso explained, adding that much as Rwanda is attracting Investors, there was also need for the business community to invest in other countries.The bilateral trade relations were blessed by President’s Paul Kagame and his Nigerian Counterpart, Goodluck Jonathan in October last year during the latter’s State visit to Rwanda.Faustin Mbundu, Chairman of the Private Sector Federation, is optimistic that the Nigerian market, which is bigger than East Africa’s 130 million market, will help Rwanda position itself as a middle income country and give it an opportunity to grow as the regional trade centre.Frank Nweke Jr, Director General Nigeria Economic group, noted that Rwanda will benefit from Nigeria’s full-fledged sectors of ICT, manufacturing, especially cement and sugar, petroleum, energy, services, arts and films through Foreign Direct Investments.“There is an opportunity for us to reinforce each other, I know this will take some time, but both countries are going to benefit from these relations,” Nweke told The Sunday Times.But Joseph Habineza, Rwanda’s High Commissioner to Nigeria, is upbeat that the relations will bolster the country’s recent efforts to lure investors in energy, ICT and the services sector.“The problem would be cost of operations, so we have to look at the issue of transport,” he said noting however that giving RwandAir capacity to increase flights to Nigeria and making it affordable for the business community will help address the issue.Rwanda recently sanctioned its trade relations with major world economies in a bid to enhance exports receipts, with the US market opening to more than 5,000 products, while the Chinese market gave way to up to 4000 Rwandan products.Rwanda’s GDP stands at US$ 6.1 billion as of last year, with Real GDP growth rate 8.2% and inflation rates standing at 7.8 percent while per capita income is at US$560, an indicator that the country still needs to attract foreign investments and increase exports.