The Ministry of Trade and Industry recognized the immense potential held by Micro, Small and Medium Enterprises (MSME's) as the backbone in Rwanda's economy by highlighting their positive impacts, addressing challenges and fostering collaboration.
The event held at Kigali Convention Center (KCC) on June 30, under the theme 'Access to finance and continental markets (AfCFTA)' brought together Rwanda's MSME's, Entrepreneurs, Development partners, Government institutions and the entire private sector to raise awareness about the crucial role and played by MSME's in Rwanda and Africa's economies while fostering knowledge sharing and providing avenues for support and development.
By highlighting the success stories and showcasing the resilience of MSME's, it becomes clear that they are the backbone of Rwanda's economy, contributing significantly to job creation, poverty reduction and economic growth.
Data provided by the ministry shows that, MSME's in Rwanda, account for 98 percent of all businesses, employing over 2.5 million people and contributing around 33 percent to the country's Gross Domestic Products (GDP) thus, these important contributions make it worth to be celebrated.
The dynamism and innovation have propelled the country's development in sectors ranging from agriculture to service and technology.
Richard Niwenshuti, the Permanent Secretary in the Ministry of Trade and Industry said that "this event highlights that Rwanda continues to prioritize the growth and support of these enterprises as their impacts are poised to be felt within and far beyond the borders of the country."
Access to Finance and the Africa Continental Free Trade Area (AfCFTA):
One of the key focal points of the event was access to finance, recognizing that lack of funding remains a significant challenge for many SMME's. MINCOM revealed that, the use of finance: 68 percent MSME'S owners borrow, but that there 46 percent is from informal institutions, 22 percent from formal institutions and only 10 percent from Banks.
On the other hand, export performance of SME's: 82 percent of MSMS's output is sold within the district it is produced while 16 percent is sold to the rest of the country and just 2 per cent is exported.
Additionally, the event explored the opportunities arising from the African Continental Free Trade Area (AfCFTA), emphasizing how MSMEs can benefit from enhanced regional integration and expanded markets.
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Addressing the issue of exportation, Niwenshuti reminded MSMEs players that "Rwanda Development Board (RDB) established several desks in the revamped One-Stop Center to issue different licenses and permits services including the AfCFTA Desk, where they can get information on navigating the its agreement and how to take advantage of the benefits it provides."
"They will be able to get financial assistance, capacity building, market access and mentorship opportunities.
However, MSME's were encouraged to fully utilize the platform as it addresses the excessively high trade costs and steep tariffs barriers in many countries.
Mukasa Yusuph, one of the MSME's player and among the heads of Virunga Biotech currently exports Agricultural processing products mainly chill pepper outside the continent said: he is looking up to switch into exportation within the continent as the AfCFTA is currently offering the significant opportunities across the continent.
As it was revealed that exporters and Importers under AfCFTA, the actual charges have reduced to two percent since its fully functioning, to which this will continue up to zero percent in the next years of AfFTA's in position.
