Rwanda: AfCFTA - Rwandan Products Launched On Ghanaian Market

30 October 2024

The recently exported consignment of agricultural products from Rwanda under the African Continental Free Trade Agreement (AfCFTA) was launched on the Ghanaian market, on October 29.

The consignment transported by national carrier RwandAir, on September 25, comprised 400 kilos of tea, 400 kilos of coffee, 100 litres of edible avocado oil, and 50 litres of honey.

Tea was sourced from two companies - Rwanda Mountain Tea, and Silverback Tea, with each accounting for 200 kilos of premium organic tea, according to the National Agricultural Export Development Board (NAEB). Coffee was sourced from Pedro's Coffee, and Igire Coffee, with 200 kilos of specialty Arabica coffee each. The avocado oil belongs to Avocare Limited, while the honey (described as pure, natural honey and wildflower honey) was produced by Boukhi Honey.

Under the Guided Trade Initiative, Rwanda exported its initial agricultural consignment - from Igire Coffee Limited - to Ghana in 2022, marking the formal start of preferential trading under the AfCFTA agreement, the first shipment consisted of coffee alone.

The products were introduced onto the Ghanaian market through an exhibition dubbed "Taste Rwanda", held in Accra, where the participants tasted samples and purchased some of the made-in-Rwanda products. The launch event was attended by the former First Lady of Ghana, Nana Konadu Agyeman Rawlings, government officials from both countries, policymakers, private sector executives, security and customs officials, and freight forwarders.

The High Commissioner of Rwanda in Ghana, Rosemary Mbabazi, commended both governments' commitment to intra-Africa trade in driving the creation of a single African market.

She said: "The shipment of these Rwandan products onto the Ghanaian market is a testimony to this commitment and to the existing strong bilateral relations between our countries.

"The milestone we are witnessing adds to the optimism that this [low intra-Africa trade volumes] is changing. Together, we have committed under the AfCFTA Agreement to lift barriers to the free movement of goods and services within our continent and Rwanda and Ghana are here to say, we are delivering."

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Briggette Harrington, the CEO of Igire Continental Trading Co. Ltd - the company that facilitated the shipment of the consignment, emphasized the commitment to revolutionize the export process for Rwandan businesses through the consolidation strategy and taking advantage of the AfCFTA initiative.

"We are excited about the initiative of consolidated product consignments and are confident it will significantly impact Rwanda's trade landscape."

A single consolidated export license was issued by NAEB to facilitate the process and the products leveraged RwandAir's preferential tariff of $1 per kilo for consignments exceeding one tonne, and $1.40 per kilo for consignments of less than one tonne. This preferential rate represents a significant opportunity for businesses to maximize their reach within the AfCFTA market.

Antoine Kajangwe, the Permanent Secretary in the Ministry of Trade and Industry, emphasized that despite the progress, much remains to be done to further support and expand intra-African trade.

He said: "The AfCFTA agreement requires our collective efforts to ensure its full implementation. Negotiations on outstanding matters must be finalized, trade facilitation mechanisms need to be adopted, non-tariff barriers require elimination or significant reduction, and digitalization of customs procedures and processes should be expedited, with an aim of developing an electronic single window between African countries."

Kofi Addo, the Chief Economist and Head of the One District One Factory, a flagship industrialization project of the Ghanaian Government, noted that this is testament of the successful implementation of the AfCFTA. Addo said that all stakeholders must come together with a common goal and unwavering commitment to address all existing barriers.

"Launching Rwandan products on the Ghanaian market is a welcome milestone to increasing tangible optimism that a single African market is possible and will help deepen intra-continental trade."

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