eBusiness Weekly
Own Correspondent
As Zimbabwe continues to explore opportunities presented by the African Continental Free Trade Area, ZimTrade – the national trade development and promotional organisation – is conducting a market survey in Kigali, Rwanda to identify products and services with potential in the East-African country.
The survey follows the resolution to intensify cooperation between Rwanda and Zimbabwe that saw several Memoranda of Understanding signed in March this year to cement bilateral relations at inaugural virtual session of the Joint Permanent Commission on Cooperation (JPCC).
The signed agreements include the Rwanda Development Board and ZimTrade cooperation whose objective is to promote mutually beneficial trade between the two countries.
Other agreements signed in March cover General Cooperation Agreement on the Establishment of a JPCC, Diplomatic consultations, cooperation in the Field of Media, Information and Publicity, collaboration in legal and criminal matters.
To unlock opportunities presented by some of these agreements, the ongoing market survey will identify sector specific opportunities, compliance needs as well as route to market that will help Zimbabwean companies land in Rwanda with ease.
The survey will focus on processed foods, pharmaceuticals, clothing, construction, horticulture, leather and leather products, agriculture inputs and implements, and services sectors.
From the findings of this exercise, Zimbabwean companies will develop strategies to penetrate the Rwandan market and establishing new export supply chains.
These strategies may include, but are not limited to, supply partnerships, investments opportunities, diversification opportunities, promotional events, establishing wholesaler/distributor agreements, exhibitions, trade fairs and trade missions.
Speaking on the contribution of the survey to national export development, ZimTrade CEO, Allan Majuru, said access to critical market intelligence will make it easy for the country to grow its exports.
“What is most important as countries grow beyond Zimbabwean boarders is that they have access to reliable information, which will make it easy to create new markets for Zimbabwean products.
“These activities and market choices are driven by the National Export Strategy launched by President Mnangagwa in 2019, whose target is to grow Zimbabwean exports to US$7 billion by 2023 and US$14 billion in 2030,” said Majuru.
Increasing trade with Rwanda will avail access to markets in the EAC and in turn increase Zimbabwe’s exports to the region with a combined GDP of more than US$177 billion.
Rwanda is a hub for a rapidly integrating Africa and with its central location in the region, is part of the East African Community Common Market and Customers Union, which has a market potential of over 132 million people.
Further to this, Rwanda has experienced high economic growth over the years and is fast becoming a strong economy in Africa, with an average of seven percent year-on-year real GDP growth since 2010.
Despite having a strong policy framework, Rwanda’s industrial sector is still small, presenting opportunities for Zimbabwean businesses in Rwanda in areas such as agriculture, health, education, manufacturing, pharmaceutical, ICT, packaging, clothing and textile, construction, engineering and tourism.
For example, Rwanda is currently importing Fast-Moving Consumer Goods (FMCGs) from across the world, with indications that Zimbabwean products can perform well in the market.
Products from countries such as United Arab Emirates, Brazil, France and Portugal have found a way into the Rwandan market, and given Zimbabwe’s proximity to the country, there is potential for local products.
In addition, Rwanda is modernising its buildings and creating residential parks, along the models of Singapore.
This has created a huge market for supplies in the construction sector, including furnishings and electricals.
Looking at furniture products, current products are being sourced from Asia countries such as Turkey and China.
However, the quality of these products is lower than furniture produced in Zimbabwe, hence there is room for local furniture producers to take command of this market.
Agriculture is one of Rwanda’s main economic activities and there is potential for growth through increased productivity and value addition for local consumption.
There is room for local suppliers to export agricultural inputs, mechanisation equipment and implements.
With regards to the services sector, Rwanda is currently developing its skills base and this has opened opportunities for local businesses to supply an array of services, including labour to the country.
There are supply opportunities for services in almost all sectors, but easy wins are in tourism, education, construction, and agriculture.
Zimbabwe is home to a diverse skills base which are in demand in Rwanda and local companies can consider coming up with creative offerings that can appeal to a young generation who make up the bulk of consumers in Rwanda.
