Prime Minister Justin Nsengiyumva has challenged East African Community (EAC) partner states to do more to help small businesses tap into the opportunities offered by regional integration.
Speaking at the opening of the 26th EAC Micro, Small and Medium Enterprises (MSMEs) Trade Fair in Kigali on Tuesday, November 3, Nsengiyumva said the success of regional integration should be measured by the opportunities it creates for entrepreneurs.
The trade fair, taking place at Gikondo Expo Grounds, has brought together businesses from across the region to showcase their products and explore new markets.
ALSO READ: EAC records $46.3 billion in trade, driven by export growth
Keep up with the latest headlines on WhatsApp | LinkedIn
"An entrepreneur in any partner state should be able to find a customer in another, should be able to source inputs from across the region and should be able to move goods efficiently across all our borders," Nsengiyumva said.
He described MSMEs as the backbone of regional economies, noting their role in job creation, innovation and expanding economic opportunities, particularly for women and young people.
However, he said, many small businesses continue to struggle to access affordable financing, find reliable buyers and move goods across borders at reasonable costs.
"Resolving these challenges gives regional integration its practical meaning," he said.
Nsengiyumva called on EAC governments to eliminate non-tariff barriers, simplify customs procedures, improve transport and logistics, and expand access to trade finance.
He said such measures would not only strengthen trade within the EAC but also help businesses take advantage of opportunities under the African Continental Free Trade Area (AfCFTA).
"With AfCFTA and SADC represented here today, we are reminded that our enterprises' opportunities lie in a much larger African market," he said.
The Prime Minister also highlighted the potential of digital platforms and e-commerce to connect businesses with customers beyond their immediate markets.
He said interoperable payment systems, including the EAC payment system and the Pan-African Payment and Settlement System, could make cross-border transactions faster, cheaper and more accessible.
ALSO READ: Intra-EAC trade remains low on non-tariff barriers
Opportunities in leather and horticulture
This year's trade fair is being held under the theme 'Advancing Regional Value Chains in Leather and Horticulture', highlighting opportunities for businesses to move beyond raw material production into processing and manufacturing.
Nsengiyumva said the horticulture industry offers opportunities in storage, cold-chain infrastructure, packaging, processing and distribution.
In the leather industry, he urged businesses to invest in processing hides and skins and manufacturing finished products, including footwear, that can compete in regional and international markets.
He linked these opportunities to Rwanda's ambition to create 250,000 jobs annually and increase non-traditional exports, including horticultural products, from $1.4 billion to $3.2 billion over five years.
During a tour of the exhibition, Nsengiyumva interacted with local entrepreneurs, including footwear manufacturers and producers of cooking oil from avocados.
One footwear manufacturer told him the business could produce only 6,000 pairs of shoes annually, while an avocado oil producer reported a production capacity of 1,000 litres.
The Prime Minister cited their limited production capacities as examples of why small businesses need greater support to expand and meet market demand.
He urged financial institutions to provide financing tailored to the needs of growing enterprises.
He also called on larger companies, manufacturers, hotels and retailers to integrate capable local and regional businesses into their supply chains.
"We want these SMEs to grow up. We want you to be billionaires, and we are here to help you," Nsengiyumva said.
He encouraged exhibitors to use the trade fair to secure buyers, identify new markets and forge lasting business partnerships rather than simply display their products.
EAC reports progress in reducing trade barriers
Annettee Mutaawe Ssemuwemba, the EAC Deputy Secretary General in charge of Customs, Trade and Monetary Affairs, said the regional bloc had made significant progress in facilitating cross-border trade.
According to Ssemuwemba, border-crossing times have been reduced by up to 70 per cent, while the Single Customs Territory has helped cut transit times from 18 days to four days.
ALSO READ: How a trade fair in Kigali drives dialogue among civilisations
She said the EAC had also introduced arrangements allowing small-scale traders to cross borders with goods using national identity cards, reducing paperwork and easing trade.
Meanwhile, the EAC Cross-Border Payment System Master Plan is moving from planning to implementation, with the aim of making transactions between businesses in different partner states more convenient.
Ssemuwemba said EAC exports to the rest of Africa had increased by 44 per cent to $7.2 billion, underscoring the opportunities available to businesses that establish stronger regional value chains.
"A shoe that is turned in one partner state, stitched in another, sold in a third is not only an East African product, it's an African product waiting to happen," she said.
She also recognised 16 Champion Mentees under the East African Women in Trade Champions Initiative for completing a six-month programme involving mentorship, coaching and leadership development.
The initiative seeks to strengthen women's participation in regional trade by improving their leadership skills, business networks and access to markets.
Businesses urged to look beyond national markets
Trade and Industry Minister Antoine Marie Kajangwe urged businesses participating in the trade fair to look beyond their domestic markets and take advantage of the EAC's market of more than 300 million people.
He said exhibitors should focus on building commercial relationships capable of generating sustained business.
"Display your products, yes, but go further. Exchange contacts, explore regional value chains, meet buyers who could become your long-term partners," Kajangwe said.
He noted that businesses which successfully establish themselves in the EAC market would be better positioned to compete across Africa under AfCFTA.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
"An enterprise that learns to trade confidently in East Africa is building the experience it needs to compete across Africa tomorrow," he said.
Kajangwe reaffirmed Rwanda's commitment to working with EAC partner states and the private sector to remove trade barriers, strengthen regional business linkages and support small businesses seeking new markets.
Language barriers remain a challenge
Beyond financing, logistics and customs procedures, language differences also present challenges for entrepreneurs seeking to trade across borders.
Caroline Asiimwe, Executive Secretary of the East African Kiswahili Commission, said effective communication was essential to building trust and facilitating business transactions.
"You cannot trade with someone you cannot communicate with," she said.
Asiimwe noted that language barriers could prevent traders from accessing information about customs procedures, regulations and available market opportunities.
She said the commission was exploring digital innovations, including artificial intelligence, to help traders access information and services in languages they understand.
The EAC MSMEs Trade Fair was first held in Arusha, Tanzania, in November 1999, attracting 134 exhibitors.
This year's edition runs until November 8, bringing together entrepreneurs from EAC partner states to showcase products, establish partnerships and explore opportunities in regional markets.
