Category: case study Rwanda

Empowering Rwanda Manufacturers and Promoting Export Growth

[vc_row][vc_column][vc_custom_heading text="BACKGROUND" font_container="tag:h3|text_align:left"][vc_column_text]Improving the export market access and linkages of firms to export is a critical focus of many businesses in the EAC. Private enterprises in the EAC face a wide range of challenges that make trading across borders difficult and reduce the competitiveness of firms.  However, when there are reduced challenges in exporting this provides an opportunity for firms to increase profit and then re-invest to increase sales, turnover and productivity. Additionally, it increases the competitiveness of domestic firms, at least in the long run, as they become more exposed to dynamic and growing markets. With time this creates an enabling trade regime that helps increase the volume of imports and exports and subsequently contributes to economic growth and poverty reduction. The TMA Traidlinks supported (Export Development) programme worked with 16  Rwandan companies so as to link them to the markets outside Rwanda. The core business of these companies was agro-processing and manufacturing. One of the successful companies that were supported by the programme was G-Mart Limited who are located in Rwanda-Kigali. The programme was implemented in partnership with, Rwanda Development Board, Kigali Independent University and the relevant private sector stakeholders and the overall programme budget was estimated at about US$ 1.4million from 2013 to 2015. This case study profiles G-Mart Limited, a company that was supported by the programme. G-Mart manufactures chalk and was originally selling locally only in Rwanda but started exporting as a result of the TMA programme intervention.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_custom_heading text="ISSUE ADDRESSED" font_container="tag:h3|text_align:left"][vc_column_text]Export promotion programmes is one...

Working with exporters to enhance their export capacity – The Case of SOSOMA Industries Limited in Rwanda

1. BACKGROUND The overarching goal of Rwanda’s Vision 2020 is to transform the country into a lower middle income economy by improving its competitiveness while ensuring unity and inclusive growth and development. Significant strides towards achieving this vision have been made especially regarding improvements in the country’s business environment and competitiveness. The African economic outlook 2014 indicted that the Rwandan government has priority to support export growth and diversification, bolster private sector development and leap-frog the various impediments that continue to hinder the contribution of the country’s private sector to national development. This in turn indicates that exporting quality and competitive products through market linkages by small- and medium-scale companies or enterprises in Rwanda enables them contribute to the national economic development of the country and export earnings in Rwanda increased by an estimated 33% in 2013. According to the global competitiveness report 2014-2015, Rwanda is ranked in 62nd position in the world, in Africa, 3rd position and number one in the East African Community which indicates that Rwanda has become even more competitive and that the business and investment environment of the country is improving. Sosoma Industries Ltd in Rwanda, located about 4km from Kigali Airport is one of the companies that we future in this case study and was supported by the TMA supported Traidlinks (Export Development) programme that worked with 16 export ready companies. The programme was implemented at an estimated budget of about US$ 1.4 million from 2013 to 2015. 2.THE ISSUE Companies in Rwanda were facing challenges...

Enhancing delivery of export adviser service – The Case of Export Advisers in Rwanda

1 BACKGROUND African countries are becoming increasingly aware of the importance of developing trade capacity in order to achieve effective participation in the regional and world trading system and to reap the full benefits of improved access to these markets (World Bank). There is wide recognition that capacity building and training are prerequisites to economic and social Development and capacity building and training have long been recognized as an important component of most trade development activities. Right from the start of the TMA Traidlinks export development programme, TMA placed considerable emphasis on capacity building and skills development, to ensure longer-term sustainability and impact of the outcomes of the programme and it was important that all those involved in the export development programme improved their skills and understanding of all aspects of exporting. The programme was implemented in partnership with Rwanda Development Board, Kigali Independent University and the relevant private sector stakeholders and the overall programme budget was estimated at about US$ 1.4million from 2013 to 2015. With regard to the priorities to improving the export capacity of Rwanda and the EAC as whole. This case study highlights the benefits of enhancing delivery of export advisory services in Rwanda. The TMA Traidlinks supported programme is just one of the TMA programmes that is helping the private sector in Rwanda and in the EAC do business in ways that are not only good for company development but also good for competitiveness and economic development of a country. Mr. Evary Murasa, one of the...

Electronic Single Window Business Models

The first Electronic Single Window (eSW) was introduced in Singapore in the late 1980’s. The Singapore TradeNet links multiple parties involved in external trade, including 34 government agencies, to a single point of transaction for most trade related transaction such as Customs clearance and payment of duties and taxes, processing of export and import permits and certificates of origin and collecting trade statistics. Between 1989 and the maturation of the system in the early 2000’s the major achievements included: Processing time was reduced from 2-7 days to within 2 minutes. Number of documents required fell from 3,035 (depending on the transactions) to 1. During this period the number of daily transactions processed rose from 10,000 per day to 30,000 per day. Freight forwarders estimate that they save 20-35 per cent of the cost of handling trade documentation. Payments of customs duties enter government coffers much faster than before. The compilation of trade statistics is substantially improved, benefiting the trading community as well as national authorities responsible for trade policy and economic surveillance. Since the launch of the Singapore TradeNet, over seventy countries have established eSWs of varying complexities, including over half a dozen or so in Africa, including the Rwanda eSW launched in 2012.24 This case study provides a brief overview of two different business models for implementation of the eSW and examines key pros and cons of the two models to inform TMA and policymakers in the region who may be considering establishing eSWs.  This is particularly relevant given...

Complementing the ReSW: Establishing a comprehensive Rwanda Trade Portal

Establishing a Formal Trade Portal A Trade Portal is a web-based trade facilitation tool that provides reliable and up to date information on all laws, regulations and procedures for traders and government agencies involved in the import and export of goods. The tool complements the overall goal of the electronic single window since it reduces the time and costs of obtaining information whilst offering greater transparency and predictability to trade transactions (World Bank, 2014). The Trade Portal is often considered a ‘first step’ towards the implementation of an eSW and increasingly seen as a way of promoting greater trade facilitation. (Pugliatti,2014). For WTO members, a Trade Portal assists them in complying with the new Trade Facilitation Agreement commitments related to Article 1 on publication and availability of information. The main obligations under this article is that Member States are required to publish ‘promptly’ a wide range of specific information related to requirements and procedure of clearing goods for import and export. In addition, Member States are required to publish this information on the internet (ITC, 2013). Despite the benefits of a Trade Portal, the development of this intervention can be extremely challenging for developing countries. Pugliatti (2014) provides a practical guideline for the steps required to develop a Trade Portal. The first step is to define the scope of the Portal in terms of the information that will be published, identifying key agencies that play a role in trade and what information they oversee as well as setting up a...

Lessons for strengthening the regional impact of the ReSW initiative

At the launch of the Kenyan Electronic Single Window in May 2014, President Uhuru called for the establishment of an EAC regional single window platform to integrate the national single window systems in partner states. Discussions on this initiative are ongoing as part of the EAC SCT operationalization, but currently only Kenya and Rwanda have functioning national level eSWs, though progress is made in establishing eSW in the other EAC member states. In late 2014, Tanzania contracted the delivery of the eSW to a private contractor, with initial roll-out for the Port of Mombasa with other border crossing and airports to be connected in the second phase. TMA is supporting the development of the eSW in Uganda, with an agreement signed for support from the Government of Denmark in September 2014. In March 2015, Burundi launched its own eSW with a number of key agencies already connected. The regional approach to eSW has been pioneered by the launch of the ASEAN Single Window Project (ASW) in 2013. The ASW is a regional initiative that connects and integrates national level eSWs of Member States. ASW implementation is expected to ensure compatibility of Member States eSWs with international open communication standards while also ensuring that each of those Member States can then exchange data securely and reliably with any trading partners that use international open standards. The ASW at present is rather limited in scope and connects only the Customs agencies of some ASEAN member countries. It currently supports the exchange of...

Reduction in the cost and time of doing business through the automation of the systems and process at Rwanda Agricultural Livestock Inspection and Certification Services (RALIS)

BACKGROUND Rwanda Agricultural Livestock Inspection and Certification Services (RALIS) a directorate under the Ministry of Agriculture and Animal Resources (MINAGRI) is a public institution responsible for the overall coordination of: the enforcement of the Rwanda plant health law and regulations for phytosanitary measures necessary for trade, Plant pest/disease monitoring, surveillance and diagnosis, conducting Pest Risk Analysis, and conduct inspection and certification. RALIS also delivers animal products certification services including enforcement of sanitary laws, monitoring and surveillance of animal diseases, and animal inspection and certification. This case study shows how the TMA support to RALIS has been used to automate the systems and processes used to regulate and facilitate businesses in Rwanda by reducing the time and cost spent when acquiring import and export permits. The RALIS SWIFT project was implemented at an estimated budget of US$ 124,000 and the projected started in 2011 and is expected to be ending in 2017 with the main implementing partner being TMA. The e-portal targeted importers and exporters of plant, plant materials, animal and animal products, and agrichemicals in Rwanda. THE ISSUE Before the automation of the systems and process at RALIS, the old system was bureaucratic and not effective and efficient in serving the stakeholders and the general public because it was relatively slow in the process of applications and giving feedback, a lot of signatures were required and too much paper work was involved. All this in the long run were contributing to increasing the cost and time of doing business and...