Rwanda's campaign to diversify its exports to cushion the economy against a growing trade imbalance, may take a little longer, with agricultural exports falling by 29 per cent due to depressed international commodity prices. In the first 11 months of last year, exports fell to $65.2 million from $91.7 million during the same period in 2014, according to the National Agricultural Export Board (Naeb). The trade imbalance was widened as seven out of the 13 leading agricultural exports — pyrethrum, hides and skins, cereals, pulses, root tubers (cassava), live animals and banana — dipped. Tea exports recorded positive growth, expanding 40.16 per cent while horticultural exports grew by 41.33 per cent. But the two agricultural exports did little to narrow the trade gap, which stood at $96.14 million’s worth of exports compared with $481.10 million of imports. The trade deficit was worsened by the growing demand for agricultural products boosted by World Food Programme sourcing cereals locally to feed hundreds of Burundians and Democratic Republic in refugees’ camps in Rwanda. NAEB figures show that for the months of August and September (2015) there was no formal export of maize and wheat flour, and from July to September no formal export of maize and sorghum. Export receipts from skins and hides also dipped largely due to the growing local demand from Chinese investors. One of the investor — Kigali Leather Ltd — has a capacity to process 60 containers of skins and hides. Despite the growing local market, analysts insist that...

Countries qualifying for duty-free access to US markets under the Africa Growth and Opportunity Act (Agoa) must adhere to US trade regulations as well as its foreign policy. This is a new rule enacted by the US Congress last year after the renewal of the US–Africa trade partnership for another 10 years. According to EAC Director General of Customs and Trade Peter Kiguta, under the new rule, a country that goes against any of these requirements is suspended from Agoa for a period to be determined by the US government. “The eligibility criteria will worsen with time because US trade representatives are expected to report on the eligibility of individual country every year and if found ineligible, a country’s goods will not have access to the US market,” said Mr Kiguta. Last week, the US and South Africa reached an agreement on importation of American pork shoulder cuts and beef. In November, the two had reached yet another agreement on poultry products. South Africa is the second country to face suspension after Burundi under the new rule. Last year October, President Barack Obama announced that Burundi would be ejected from Agoa in January for its “continuing crackdown on opposition members, which has included assassinations, extra-judicial killings, arbitrary arrests, and torture.” African countries’ agricultural produce enjoy a zero-tariff rate for about 6,800 product line through Agoa without any reciprocity required for US goods. “For African countries to expand their trade partnership with the US market, we need to negotiate a preferential trade agreement...

KIGALI, RWANDA - The government and Dubai Port World (DPW) last week signed a concession agreement that will see DPW develop and operate the Kigali Logistics Platform (KLP) destined to be a dry port. “This agreement will help to reduce transport costs and increase profits for businesses,” Francois Kanimba, Minister for Trade and Industry said. A dry port is an inland terminal directly connected by rail or road to a sea port, providing services for handling, temporary storage, inspection and customs clearance for international trade. “Good leadership and the friendly business environment growing in Rwanda attracted our interest to this infrastructure investment,” Suhail Albanna, Senior Vice President and Managing Director of Dubai Port World for the Middle East and Africa region said. DP World has a portfolio of more than 65 marine terminals across six continents employing some 36,000 people. The trade ministry has been in the process of implementing the Rwanda Logistics and Distribution Services Strategy which will enable Rwanda to overcome logistical difficulties that have negative implications on Rwanda’s trade competitiveness. “There are cases where offloading containers takes almost the whole week, forcing truckers to make only two trips per month. But with this new infrastructure, the trucks will do as many as five trips per month. This will surely reduce transport costs and increase profit for businesses,” Kanimba said. At completion the KLP will mean the consolidation and distribution of goods. It will have functions similar to those of a seaport, and which includes customs clearance services....

Dubai Port World plans to construct a $40 million inland container depot on a 30-hectare plot of land in Masaka, a suburb east of Kigali city, as Rwanda seeks to become a regional trade logistics centre. Dubai Port World has been granted a 25-year concession to finance, develop and manage the facility, which will provide warehousing, truck parking, a container yard and other auxiliary services. According to Dubai Port, the first phase of the Inland Container Depot, at the Kigali Logistics Platform, is set to be complete in 18 months’ time, raising hopes that it will contribute to the ease of doing business in the country. When completed, analysts are optimistic the dry port, which is linked to both the Northern and Central Corridors, will allow Rwandan importers and exporters to consolidate volumes of cargo. “There are cases where offloading containers takes almost a whole week, forcing truckers to make only two trips per month. But with the new infrastructure, the trucks will do as many as five trips per month. This will reduce transport costs and increase profit for businesses,” said Minister of Trade and Industries Francois Kanimba. Truck drivers complain about the long waiting time when in Rwanda, despite the implementation of the East African Community Single Customs Territory resulting in a seamless flow of goods within the region. “There are times we wait for more than 20 hours before being allowed into the city, which adds to operational costs. For instance, trucks are only allowed into Kigali...

THE Federal Republic of Germany has signed an inter-governmental agreement with the East African Community (EAC) to support the economic integration, regional health facilities and water resource management. Germany signed a total of 37 million euros in grants to the EAC for 2016-2018, highlighting the strong commitment to support the integration process in East Africa. The EAC Communications Officer, Mr Richard Owora Othieno, revealed here that 10 million euro in financial assistance will be invested in the establishment of a regional network of reference laboratories for communicable diseases. With this project, the German government responds to a request for support from the EAC for the prevention and control of epidemic outbreaks in the region. Another 10 million euros in financial assistance will be used for Integrated Water Resource Management of Lake Victoria aiming at improving water provision and management of water resources. Both projects will be implemented by KfW development bank. On the other hand, the 17 million euros in technical assistance will be made available to further support of the economic integration process, including a contribution to the EAC partnership fund. The programme is focusing on institutional strengthening of the EAC Secretariat and on supporting the implementation of the Customs Union, Common Market Protocols and Monetary Union. This includes the elimination of Non- Tariff Barriers such as tax harmonisation as well as Mutual Recognition Agreements for qualifications. At the same time Germany will support the EAC in promoting private investment especially in the pharmaceutical sector, including the establishment of...

Trade between Rwanda and Turkey could be enhanced, thanks to a new initiative between the two countries’ private sector bodies that was unveiled on Wednesday. According to Stephen Ruzibiza, the Private Sector Federation (PSF) chief executive officer, the Rwanda-Turkey Business Council will strengthen economic ties between the two countries through trade promotion, co-ordination, as well as information, skills and knowledge sharing. “Turkey is one of the major world economies, therefore, strengthening our relationship with the country is a right step that we expect will help us penetrate other global markets,” Ruzibiza said during the inauguration of the council in Kigali on Wednesday. The function was graced by Turkish foreign economic relations board members and PSF Rwanda officials and local business leaders. Ozen Ibrahim, the chairman of the council, said the initiative creates a channel for trade and investment opportunities in the two countries. He added that the council will also facilitate industrial and technological co-operation to ensure mutual benefit by both parties. “The council will, therefore, play a critical role in developing and executing strategies that promote strong economic ties.” It will be equally helpful in attracting foreign direct investments from both sides, he added. The Rwanda Development Board (RDB) has registered $400 million worth of investment projects from Turkey in the past three years. According to Innocent Bajiji, the acting head of investment promotion and facilitation at RDB, Rwanda’s exports to Turkey have increased to over $8.5 million on annual basis, but the country’s imports more than double this figure....

World Trade Organisation Director-General Roberto Azevedo has described last December's ministerial conference in Nairobi as a memorable gathering where significant results were achieved. Mr Azevedo said the meeting delivered some of the biggest reforms in global trade policy ever realised in the past 20 years by the 162-member organisation. Speaking at the University of the West Indies in Jamaica, the WTO boss urged governments to capitalise on the progress in future negotiations that will enable governments and businesses to trade more. “The Nairobi package made a decision on export competition that was truly historic. It is the most important reform in international trade rules on agriculture since the creation of the WTO where we eliminated agricultural export subsidies. “This has significantly improved the global trading environment, especially in developing countries who suffered enormous trade-distorting potential from the subsidies. "In fact, this task has been outstanding since export subsidies were banned for industrial goods more than 50 years ago. So this decision corrected an historic imbalance,” he said. He said a level playing field in agricultural markets had been created, with direct benefits to farmers and exporters in developing and least-developed countries. Mr Azevedo said the move would also correct anomalies where export credits and state trading enterprises wrongly benefitted from the subsidies-driven export trade. “The smaller and the poorer the country, the more likely it is to need trade as a means to attract investments and to boost economic and social development. We simply cannot lose sight of this reality,”...

GOMA, DEMOCRATIC REPUBLIC OF CONGO Sifa Nsabimana had just crossed from Rwanda into Democratic Republic of Congo when a border police officer told her to pay a value-added tax of 500 Congolese francs (54 cents). Nsabimana, a Rwandan who makes a living by selling tomatoes every day in DRC, showed the officer her receipt, proving that she had already paid the tax, which is imposed on all cross-border petty traders. The officer took the receipt, and an argument ensued. Eventually, Nsabimana, who lives in Gisenyi, says she paid the tax again another 500 Congolese francs to ensure that she would be able to do her business in Goma that day. The cities of Gisenyi and Goma hug either side of the international border that divides Rwanda and DRC. People from both countries trade goods with one another on a daily basis. Traders from Goma bring tarpaulins, fabric and other items to Gisenyi. Rwandan women often take food products, including milk, cabbage, carrots and beans, into DRC. There are problems related to cross-border trade, but Papy Michel, head of the Goma office for the Trade Information Desk of the Common Market for Eastern and Southern Africa (COMESA), says the practice yields huge benefits. Despite political wars and conflicts that are waged between Rwanda and DRC, these structures of small-scale traders contribute to socially consolidating peace in both cities as part of peace-building efforts, he says. Nsabimana, 39, borrowed 3,300 Rwandan francs ($4.43) in 2009 to start her cross-border trade business after...

Djibouti has signed a series of trade agreements with China including the setting up banking and free trade zones, according to a statement from the strategic Horn of Africa nation’s president. China last month said it would build a naval base in Djibouti, the latest sign of China’s growing international security presence. The “important economic agreements” include banking deals and a proposed 48 square kilometre (18.5 square mile) free trade zone, with the first section “to be operational before the end of 2016”, President Ismail Omar Guelleh said in the statement released this week after the deal was inked on Monday. Djibouti, which lies at the entrance to the Red Sea and Suez Canal, will operate as a “trans-shipment and redistribution” hub for Beijing’s trade, the statement added. On Wednesday, the United Nations World Food Programme (WFP) opened a “humanitarian logistics base” in Djibouti’s port. Regional WFP chief Valerie Guarnieri said the site will help aid to be transported more “quickly, efficiently and cost-effectively” in a region that includes neighbouring drought-hit Ethiopia, as well as war-torn Yemen, Somalia and South Sudan. WFP last year moved 500,000 tonnes of food through Djibouti and the new base will enable larger amounts. Floods and failed rains caused by the El Nino phenomenon have sparked a dramatic rise in the number of people going hungry in east Africa. WFP said aid for a quarter of all those they support worldwide will be funnelled through the new base. “We are opening this facility at a...

KIGALI Rwanda (Xinhua) -- Rwanda is set to establish a dry port in an effort to allow heavy cargo trucks from Mombasa and Dar-es Salaam ports to load and offload containers without delay. The move, according to Rwanda ministry of trade and industry seeks to boost international trade and competition in the global market. The small Central African country being land locked sees the new initiative as a platform that will address challenges affecting transportation of goods from Mombasa and Dar-es Salaam ports to Rwanda. A dry port is an inland terminal directly connected by rail or road to a sea port, providing services for handling, temporary storage, inspection and customs clearance for international trade. Speaking to reporters on Wednesday, Francois Kanimba, Rwanda minister trade and industry said that, the facility would help flourish Rwanda exports. "Our country aims to enhance the logistics sector to support the export of products for regional and international markets. "The logistics facility is expected to significantly contribute to the development of this strategy," he said. Rwanda has signed an agreement with Dubai-based global marine terminal operator Dubai Port World to develop and operate the dry port in Kigali special economic zone in the city suburbs of Rwanda, Capital Kigali. The 25-year renewable concession agreement with Dubai Port World will see a 35 million U.S. dollars dry port developed. "There had been cases where offloading and loading containers takes almost a week, forcing trucks to make only two trips per month. "But with new infrastructure,...