Trade between Rwanda and Zimbabwe increased by 50 per cent in three years, owing to business engagement efforts, representing potential to boost the implementation of the African Continental Free Trade Agreement (AfCFTA), according to officials.
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Business leaders and government officials expressed optimism about potential that lies within the existing trade ties at the third edition of Rwanda-Zimbabwe Business Forum themed "Shared prosperity: harnessing the potential of Rwandan and Zimbabwean economies."
Since the beginning of such annual business forum in 2021, officials reckoned the engagement successful with partnerships forged between the private sectors and governments across various sectors including ICT, agriculture and livestock, e-Government, education, energy, infrastructure, among others.
To give it context, Zimbabwean companies have invested more than $38 million in Rwanda while eight Rwandan companies have started operations in energy, information technology, and agro-processing in Zimbabwe.
Additionally, more than 150 Zimbabwean teachers have been deployed mostly in teachers' training colleges in Rwanda. At least 15 energy projects started implementation in the two countries.
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While Rwanda and Zimbabwe currently conduct trade under the multilateral agreements of COMESA and bilateral relations, Sheillah Chikomo, Zimbabwean Deputy Minister of Foreign Affairs, said the AfCFTA has set the basis to improve trade and investment relations between the two countries.
According to the Minister, Zimbabwe aims to achieve $14 billion revenue in exports by 2030 from $7 billion registered in 2023.
To increase the export revenue, Chikomo noted that focus should be on new products and services in traditional and non-traditional markets, and the AfCFTA opens new market opportunities beyond the COMESA and SADC regional blocs.
"The increase in exports between Zimbabwe and Rwanda since the beginning of coordinated efforts in 2021 has contributed to a lot of growth. Zimbabwe's engagement in regional communities aims at promoting economic growth, attracting foreign direct investments, and improving the livelihood of our citizens."
The AfCFTA is an intra-Africa preferential trade agreement that offers the importer reduced tariffs, allowing products to be imported at less cost, thereby making them more competitive in pricing in the target market.
According to Alexis Kabayiza, Chief Technical Advisor, Ministry of Trade and Industry, removing tariff and non-tariff barriers is necessary to advance trade activities between both private sectors under the AfCFTA.
He said while the tariff liberalization is progressive, it is upon the private sector's commitment to drive its implementation and reap the desired benefits, adding that it is even easier in situations where two countries share good political will with existing bilateral trade ties.
Vincent Biruta, Minister of Foreign Affairs and International Cooperation, emphasized that the collaboration will unlock opportunities, accelerate investment flows, and create an enabling environment for businesses to thrive.
"As we navigate a complex global landscape, it is essential to identify and capitalise on emerging trends and market dynamics. Rwanda and Zimbabwe, with their unique strengths and capabilities, have much to offer the world."
Jeanne Francoise Mubiligi, Acting Chairperson of the Private Sector Federation, highlighted key lucrative sectors for Zimbabwean businesses including agriculture and agro-processing, seed development as a nascent sector for Rwanda compared to Zimbabwe's expertise, mining industry with a special focus on exploration, as well as the service industry.
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Kennedy Makahamadze, Zimbabwean business executive operating Burera Dairy company in Rwanda, said partnerships have been evolving with trade volume improving significantly over the years, and sharing a platform of mutual exchanges between both business communities.
According to him, business communities can drive the AfCFTA once provided with the proper instruments and raising awareness, because, in the end, businesses are there to make profit and expand.
The continental market of 1.3 billion people with a combined Gross Domestic Product of more than $3.4 trillion has seen significant milestones with the operationalization under the Guided Trade Initiative which kicked off in 2022 and has entered the second phase of trade in goods and trade in services.
Countries like Rwanda, Cameroon, Egypt, Ghana, Kenya, Mauritius, Tanzania, Uganda, and South Africa have participated in the first pilot phase, with more expected as mobilization efforts continue.
