Assessing how Rwanda has grown trade under AfCFTA
Rwanda is among countries that have made significant strides in expanding trade volumes under the Africa Continental Free Trade Area Agreement. The country’s exports have soared by 6.9 per cent with prospects to grow it further. CNBC Africa spoke to Briggette Harrington, Chief Executive Officer, Igire Continental Trading Company, for more.
Fri, 04 Apr 2025 15:09:12 GMT
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AI Generated Summary
- Rwanda's significant progress in growing exports under the AfCFTA, exemplified by Igire Continental Trading Company's pioneering role in exporting Rwandan products to Ghana.
- Challenges hindering the full potential of AfCFTA, including inadequate provisions for the free movement of people, corrupt customs practices, and barriers to market entry.
- Innovative solutions and strategies employed by companies like Igire Continental Trading Company to overcome trade obstacles, such as implementing direct-to-consumer e-commerce platforms to enhance market access.
Rwanda has been at the forefront of expanding trade volumes under the Africa Continental Free Trade Area (AfCFTA) Agreement, with the country's exports experiencing a significant increase of 6.9 percent. Brigette Harrington, the Chief Executive Officer of Igire Continental Trading Company, recently shared insights into Rwanda's journey in growing trade under the AfCFTA. Harrington highlighted the company's pioneering role in exporting products under the Guided Trade Initiative of AfCFTA in 2022. Despite encountering initial challenges with customs and distribution, the company successfully shipped an aggregated consolidated shipment of products to Ghana in September 2025, including popular Rwandan brands like Pedro's Coffee and Ronda Mountain Tea. The strategic distribution plan, which involved partnering with an e-commerce company for efficient delivery, enabled Rwandan products to reach consumers in Ghana within 48 hours. Rwanda's progress in trade expansion is part of a larger trend in Africa, with six countries currently hosting AfCFTA trading companies, including Egypt, Ghana, Kenya, South Africa, and the recent addition of Chad. The emphasis on engaging micro, small, and medium-sized companies in the trade process is driving growth and fostering economic development across the continent.
Despite the success stories, challenges persist in maximizing the potential of AfCFTA. One crucial issue highlighted by Harrington is the need for improved mechanisms for the free movement of people across borders to facilitate trade interactions. The existing protocol lacks comprehensive provisions for free movement, with only a limited number of countries having signed onto the agreement. This hinders business dealings as entrepreneurs are unable to travel freely between countries to negotiate deals and navigate the trade landscape effectively. The recent incident where Rwandan trading companies faced visa restrictions while attending a meeting in Cape Town underscored the urgency of implementing seamless travel policies to support intra-Africa trade.
Additionally, Harrington identified customs operations as a major obstacle to trade efficiency within AfCFTA. She raised concerns about corrupt practices within customs departments in various countries, where bribery and irregularities hamper the smooth flow of imports and exports. Addressing these challenges is crucial to creating a transparent and conducive trade environment that benefits both importers and exporters. Furthermore, barriers to market entry present significant hurdles for companies seeking to establish a presence in new territories. Harrington's experience with distribution challenges in Ghana, where local supermarket chains favored existing suppliers with informal agreements, highlights the importance of innovative solutions like direct-to-consumer channels through e-commerce platforms.
In response to these challenges, Igire Continental Trading Company has leveraged technology to establish a direct selling model through an online platform, enabling consumers to access Rwandan products conveniently. By circumventing traditional distribution channels and embracing digital commerce, the company has successfully navigated market entry barriers and enhanced customer accessibility. The transformative power of technology in overcoming trade obstacles underscores the importance of innovation and adaptability in the evolving landscape of AfCFTA. As Rwanda continues to drive trade expansion and foster economic growth, proactive measures to address key challenges will be essential in realizing the full potential of the continental trade agreement.