Rwanda's ranking in cross-border trading improves

Rwanda's trade sector has been witnessing significant improvements in cross-border trading, according to the 2016 TradeMark East Africa independent report. The country has managed to reduce the cost and time of doing business by eliminating non-tariff barriers, automating key trading processes, and enhancing standards, testing, and capacity building to boost export capability. These efforts have not only streamlined the trading process but also resulted in substantial cost savings and efficiency gains for businesses involved in international trade. CNBC Africa recently caught up with Patience Mutesi, the Country Director of TradeMark East Africa, to discuss the achievements and future plans of the trade initiatives in Rwanda. The conversation shed light on the remarkable progress made in the trade sector and the ongoing efforts to further enhance the trading environment in the country. One of the key highlights of the discussion was the establishment of the National Monetary Committee, comprising representatives from various sectors such as business, transportation, and government. This collaborative approach proved to be effective in identifying and addressing non-tariff barriers, leading to a significant reduction in transport costs for containers. Mutesi shared insights on the cost savings achieved through the removal of such barriers, highlighting the positive impact on the country's economy. The involvement of the private sector was also emphasized, with a focus on promoting behavioral changes to improve efficiency and reduce transaction costs. The introduction of an electronic cargo tracking system was highlighted as a strategic move to monitor and track exports throughout the trading process, ensuring accountability and transparency in transportation. Additionally, the importance of an SMS-based monitoring system for reporting non-tariff barriers was underscored as a way to promptly address trade-related challenges. Mutesi pointed out the collaborative efforts between Rwanda and neighboring countries like Tanzania, Uganda, and Kenya in resolving trade issues at border points, ensuring smooth cross-border trade flow. The interview also touched upon the initiatives supporting women traders in Rwanda, showcasing the positive outcomes of projects like the Kaguitumba One-Stop Border post, which witnessed a significant reduction in crossing time. Despite the infrastructure investments made in such projects, the focus remains on achieving self-sustainability and maximizing the usage of these border facilities. The partnership with the Rwandan Standards Board highlighted significant improvements in testing processes and certification standards, reducing testing time and enabling local traders to conduct testing locally. The future plans include harmonizing standards within the East African Community to facilitate seamless trade across the region and address challenges related to varying standards in different jurisdictions. Overall, Rwanda's trade sector has made significant strides in enhancing cross-border trading, and the collaborative efforts between government entities, private sector players, and international organizations like TradeMark East Africa continue to drive positive changes in the country's trading landscape.