Rwanda, Zimbabwe seek to deepen trade and economic ties

Rwanda and Zimbabwe are on the path to deepening their economic ties as a delegation of over 40 Rwandan business people participate in this year's Zimbabwe-Rwanda Trade and Investment Conference in Harare. The conference, organized by the Rwanda Development Board, aims to strengthen diplomatic relations between the two nations through business collaborations. In an exclusive interview with Allan Majuru, CEO of ZimTrade, key insights were shared on the importance of enhancing trade relations between the two countries. The event serves as a platform to not only discuss diplomacy but also to bolster economic cooperation through tangible business engagements. Majuru highlighted the significance of the African Continental Free Trade Area (AfCFTA) in promoting intra-African trade, emphasizing the need to shift from raw material exports to value-added goods and services. The low levels of intra-African trade present an opportunity for Zimbabwe and Rwanda to lead by example in enhancing trade relations within the continent. By focusing on exporting value-added products and integrating them into the market, both countries aim to transform the trade landscape in Africa. One of the key sectors identified for collaboration is agriculture, where both countries possess unique strengths and climatic advantages. Collaborating on agricultural best practices and crop synergies can lead to mutual benefits in the trade of agricultural products. Additionally, initiatives in tourism and energy sectors have been signed to boost efficiency in transmission and generation, as well as foster partnerships in the exchange of resources. The signing of Memorandums of Understanding (MOUs) between private sector players from both countries further underscores the commitment to fostering business collaborations. The MOUs aim to facilitate business-to-business (B2B) meetings that will translate into tangible economic outcomes. Despite the challenges posed by the COVID-19 pandemic, efforts to strengthen trade ties between Rwanda and Zimbabwe remain resilient. When questioned about the current trade volume between Rwanda and Zimbabwe, Majuru acknowledged the existing low numbers but expressed optimism about the untapped potential for growth. The strategic decision to focus on Rwanda was attributed to its location and conducive business environment, coupled with the positive relations between the two countries' leaders. Leveraging Rwanda's access to East Africa and Zimbabwe's connectivity to the Southern African Development Community (SADC) region, the aim is to establish a mutually beneficial trade network that extends beyond their borders. In addressing the challenges of intra-African trade, Majuru emphasized the need for actionable measures to reduce barriers such as tariffs and improve infrastructure. Efforts are underway to enhance border infrastructure, streamline customs procedures, and revamp the rail and road networks to facilitate smoother trade operations. By prioritizing efficiency and ease of doing business, both countries are committed to creating a conducive environment for trade and investment. The ongoing Zimbabwe-Rwanda Trade and Investment Conference serves as a testament to the shared commitment of Rwanda and Zimbabwe towards enhancing economic cooperation and fostering sustainable trade relations. Through collaborative efforts in key sectors and the implementation of strategic initiatives, the two nations aim to set an example for intra-African trade and contribute to the economic development of the continent.