Rwanda eyes exports led growth as country angles for more trade

Rwanda is setting its sights on significantly increasing the volume and value of exports as the country aims to diversify its export markets and drive economic growth. In a recent interview with CNBC Africa, Ted Kaberuka, a partner at Centrix Group, shed light on Rwanda's export performance and future strategies. The Rwandan economy has shown promising growth in the export sector, with a notable uptick in the last quarter of FY24. Key export destinations include the United Arab Emirates and neighboring countries like the Democratic Republic of Congo. The rise in export volumes has not only contributed to economic growth but has also led to job creation and an influx of foreign currency into the economy. However, Rwanda still faces a trade imbalance, but efforts are underway to bridge this gap in the coming years. Kaberuka highlighted that value addition plays a crucial role in driving up exports, with a focus on processing commodities and minerals locally before exporting them as semi-finished products. The country's aviation sector, particularly Rwanda Air, has also been instrumental in facilitating exports by providing cargo services for perishable goods like flowers, fruits, and vegetables. Additionally, Rwanda's participation in international trade conferences and exhibitions serves as a platform to showcase its export potential and attract foreign investors. The influx of investments will not only boost production capacity but also enhance Rwanda's export competitiveness. The fluctuation of the Rwandan franc against the US dollar remains a pressing concern for the economy. The imbalance between high imports and exports continues to exert pressure on the local currency. To mitigate this challenge, Rwanda is focusing on promoting its tourism and MICE (Meetings, Incentives, Conferences, and Exhibitions) sector to attract more visitors and events, thereby increasing foreign currency reserves to finance imports. Kaberuka emphasized the impact of geopolitics on export performance, noting that political issues in destination countries can hinder the flow of exports and revenue generation. Despite these challenges, Rwanda remains optimistic about regional trade opportunities within the East African Community and the broader African common market. By leveraging these networks, Rwanda aims to bolster its export capabilities and achieve a more balanced trade balance in the future.