Category: Country

Enriching Rwandan smallholder farmers as export markets expand

Faustini a father of six is a coffee farmer in Rwanda. He has been growing coffee for 20 years. He started with 200 trees he inherited from his father who was a traditional coffee smallholder. In 2005, at a time when a coffee-drinking culture was rapidly expanding across the globe, the Musassa Coffee Co-operative was formed in Ruli District - located in Rwanda’s verdant hills, a slow and steep two-hour drive from Kigali. The establishment of the cooperative represented a promise of access to markets and this encouraged Faustine to take coffee growing more seriously. He increased his trees to 1700 and over time hired extra help of 5 workers. Musassa Coffee Co-operative represents 2,000 smallholder coffee farmers, 60% of them women. The farmers take their beans to designated collection points in the district from where they are delivered to the washing station, for washing, drying and grading. Almost all Rwandan coffee is exported in the green (unroasted) state because the buyers prefer to roast it themselves, sometimes blending it with other coffee types from various origins. “My life improved very well,” he says, “before we had so many problems related to production and management of coffee trees. The co-op came with solutions in the form of efficient supply chain and now we are making more money.” Faustini has done well over the 11 years he has been part of the Musassa co-operative. While his father lived in a house made of mud, Faustini’s is brick and has electricity. His...

A lesson for importers – how to save money through becoming an AEO

Question: How can Customs authorities and importers work together so that tax revenues increase while importers save money? It sounds like a contradiction in terms. How can importers hope to save money when the more products they import the more tax they pay? Yet it is happening in East Africa where Customs reforms, facilitated by TradeMark Africa (TMA), are not only encouraging importers to be tax compliant, but are also helping them to save money on transport and related costs. Robert Bapfakurera, founder and Managing Director of Roba General Merchants in Kigali Rwanda, is a good example. His company imports fast moving products such as rice, cooking oil, sugar and soap, from countries as close as Uganda and as far away as Pakistan and Indonesia. For a landlocked nation like Rwanda, importing products from overseas used to be a stop-go process, a minefield of bureaucracy combined with a plethora of barriers that included weighbridges, roadblocks and unofficial payments at borders. Today, thanks to expertise and training provided by Rwanda Revenue Authority (RRA) in collaboration with TMA, the journey is less stressful, with a reduction in transit time of an incredible two thirds. For Bapfakurera the change began in 2012 when he was chosen by the RRA to become one of only three Authorised Economic Operators in Rwanda, referred to as ‘AEOs’. AEOs, are accredited importers and exporters benefiting from preferential treatment and incentives because they have demonstrated a history of compliance. The new status gives Roba General Merchants the right...

Setting standards in Rwanda’s food industry

Laurent Demuynck has a passion for mushrooms. He calls them “the meat of the poor” because of their high nutritional value. As founder and CEO of Kigali Farms, a Kigali based mushroom processing company, he wants to see Africa catch up with the rest of the world when it comes to growing mushrooms. In fact, he has a vision that in 10 to 15 years, thousands of people in Africa, maybe hundreds of thousands, will be making an income from mushrooms. Kigali Farms is one of 21 Rwandan food and agricultural companies that have recently benefited from global training, known as HACCP, that ensures standards in food safety are reached and maintained. HACCP, or Hazard Analysis and Critical Control Point, is an effective tool to prevent biological, chemical and physical contamination of food, and should eventually lead to a company receiving widely accepted certification. Funded in Rwanda by TradeMark Africa (TMA) and implemented by the British Standards Institution (BSI) in partnership with the Rwanda Standards Board (RSB), the HACCP training aims to provide safety in every part of the food chain from the farmer, to the processor, to the retailer, through to the final consumed product. For the food producers of Rwanda, HACCP certification is one more step towards the coveted goal of exporting their products to the East African Community and beyond. Exports are critical to reducing Rwanda’s trade deficit, yet until recently it had limited scope to test products for mycotoxin (fungal infection) contamination. Instead, they were sent...

South Sudan officials go back to school for work

Diborah Donada is back in the classroom to learn a skill that will help South Sudan’s economy grow from dependence on oil – English, East Africas’ business language. “As a Customs officer, I am the eyes of the nation. My job is very important to earn revenue for my country’s development, for our children’s health, for hospitals and for education. English will help me be a better officer.” She is one of around 200 staff of the Customs Service of South Sudan and National Bureau of Standards who are being taught to learn English so they can deal efficiently in the business language of the East African Community. The training is part of a comprehensive programme of skill and capacity building backed by TradeMark Africa, which has carried out similar language programmes in Francophone Burundi so that government officials can negotiate in the EAC’s key language. Surprisingly, for many visitors, the language of day-to-day South Sudan is Arabic the language of the mainly Arab North from which the country gained independence in 2011 after almost 30 years of war. Around two million South Sudanese left Arabic-speaking jobs in Khartoum and now form the backbone of civil service positions, according to the Director-General of CSSS, Maj-Gen Mikaya Modi. “English is vital,” he says. “It is the language of business in East Africa.” Linda Nansubuga, one of the English-language trainers, says many of her candidates have little background in English and are given remedial and extra tuition. “Skill levels vary a great...

South Sudan readies economy for Growth AMID Conflict

The symbols of South Sudan’s key challenges boom overhead every 15 minutes, briefly denying Juba residents the chance of sensible conversation, making paperwork on desks flutter and shake and dust rise on the streets. They are aircraft, commercial flights carrying businessmen and aid workers, and United Nations transport craft ferrying food and people to staunch the needs of more than a million made homeless and thousands killed since renewed internal conflict erupted in December 2013. Residents of Juba have become used to the noise but recognise that the aerial traffic encapsulates the dilemma facing the world’s newest nation as it tries to develop and tap its undoubted potential. “Peace. For South Sudan to really begin to grow, we need peace more than anything else,” says Caesar Riko, the policy and advocacy advisor of South Sudan Chamber of Commerce. “We can grow, even in conflict, but not the way we could if there was peace.” The world’s newest nation was born in July 2011 in jubilation after almost 30 years of war with the Khartoum government in the North but descended into internal conflict in December 2011 when President Salva Kiir accused his deputy, Riek Machar, of plotting to overthrow him. That simmering conflict shut down South Sudan’s key oil fields in the North of the country and has highlighted in cruel focus the need for the country to diversify away from 98% dependence on petroleum for the revenue with which to develop a country of around 12 million people. The...

South Sudan says no to goods dead on arrival

The biscuits came from Iran in modern, airtight packaging, the list of ingredients displayed on the back, an appetizing picture of the snack on the front. [caption id="attachment_6922" align="alignleft" width="500"] Jacob Matiop, South Sudan National Bureau of Standards head at Nimule, shows some of the expired imported goods impounded at the border.[/caption] The problem was that their expiry date was the week before they crossed the border from Uganda. They were inedible, potentially harmful for the consumer, and duly rejected by South Sudan’s embryonic National Bureau of Standards (SSNBS). “There was a whole consignment like this,” says Jacob Matiop, SSNBS head at Nimule, through which 90% of the nation’s goods arrive through the East African Community’s Northern Corridor from the Kenyan port of Mombasa. “So we seized them, and we will destroy them. The owners are upset but South Sudan will not let itself become a dumping ground for sub-standard or expired goods of any sort, and that means everything from biscuits to computers.” Matiop is young, determined and enthusiastic about establishing a system of standards of the sort that many EAC states already have or are, like his own country, building with help from TradeMark Africa (TMA) to protect consumers and streamline trade. “Of course traders get upset. They are not used to the idea of standards. One trader even pulled a pistol on one of my officers but we are protecting our young nation and our consumers. It is a duty.” Standards are a key part of the...

Trademark East Africa helps fast track aid in South Sudan crisis

They live in a state of suspension under plastic sheets or twigs, under tents if they are lucky, out in the open if they are not. Women and children, men and boys; the only certainty in their lives is uncertainty. These are the human flotsam from South Sudan’s unresolved internal conflict, which erupted in December 2013, sending more than a million running for shelter, food and security, killing 10,000. “It’s a critical emergency,” says World Food Programme (WFP) Logistics Cluster head Fiona Lithgow. “Just getting relief to these people in a country of this size is an enormous challenge, but we are winning.” Relief flights leave Juba airport daily, airlifting or airdropping supplies to U.N. and NGO teams dotted around the compass points of one of Africa’s biggest countries, and the newest country in the world. Almost all of that aid comes by road from faraway Mombasa, or the U.N. logistics base at Entebbe, Uganda. It now gets fast-track clearance under a programme supported by TMA and its partners which has reduced clearance time to one or two days from four-five days before. “The paperwork has been hugely reduced for aid trucks,” says Bennet Obwoya, who oversees the comings and goings of the aid convoys in a small containerized office at the corner of the Nimule Customs area. “The need for proof of payment of taxes for aid, which is tax exempt, has been done away with. Verification of cargoes has been speeded up a lot and things have improved...

Body language lessons help Burundi women solve border disputes

A guide to handling problems at any international frontier might usually entail tips on how to complete a form and a reference guide to import taxes and regulations. But in Burundi, the assistance has been taken a whole lot further with a guide on how to avoid confrontational body language when women traders, the bedrock of cross border trade, deal with customs and tax officials. Laid out in cartoon-style diagrams, the guide is one of many innovative ways Search for Common Ground (SFCG), an international NGO, is helping ordinary people adapt to the realities of trade now that one of Africa’s smallest states is now a member of one of Africa’s biggest trade blocs, the East African Community (EAC). “Our aim is to help women traders improve their position in the new realities of EAC membership, and that means helping them understand today’s realities of paying taxes and duties and dealing with officials without getting into rows,” says Floride Ahintungiye, Programme Director of SFCG, “It starts with just simple things, like learning that finger pointing immediately sets your interlocutor on the defensive. It’s amazing how much progress you can make when you start off with the right attitude of working together to solve problems.” As the EAC grows and becomes more streamlined, borders become the interface not just between member states but EAC citizens, women notably, struggling to come to terms with the new realities of tariffs, duties and procedures EAC rules mandate. Signs posted along major roads in Burundi...

MINAGRI, RALIS and TMA support Rwanda’s honey exports to Europe

In order to achieve the Economic Development and Poverty Reduction Strategy (EDPRS2) and 2020 Vision’s objective to commercialize and diversify agriculture, the Government of Rwanda has been involved in promoting trade in different crops by creating a conducive environment to facilitate the export of these key agriculture products but also by ensuring Rwandan products get access to potentially lucrative foreign markets. Honey for export Previous reports on the honey sector have been for some time highlighting the export potential for Rwandan honey and other bee products. The quality of the Rwandan honey and wax was considered good and it was evident that it could meet the quality standards and specifications of foreign markets In this respect, honey was considered as one of the products to be promoted both regionally and internationally. In Rwanda, honey production has been considered for a long time as a past-time activity carried out by older men and in many respects has been neglected. Information on apiculture was scattered and most of what was available amongst various sector stakeholders were merely assumptions due to the lack of data and a well-defined monitoring and evaluation system. In the recent past, however, apiculture (the rearing of bees for commercial purposes), has been brought to the forefront, playing an increasingly significant role in transforming the lives of former gatherers of honey at a very small scale into farmers complying to national and international standards at every level in the production chain towards export. “Although the government puts in a...

Burundi tax success builds confidence, business image and hospital

A gleaming new hospital stands on a hillside in rural Burundi, a tribute to a tax system envied in many parts of Africa and the government’s commitment to home-grown development of one of the world’s poorest countries. “It was built entirely from our own resources,” says Dr Liboire Nigiri, Director General at the Ministry of Public Health. “Before long Burundians won’t have to go abroad for interventions and surgery. They will use their very own hospital.” The 150-bed Karusi referral hospital is the latest gleaming example of the way that the government of Burundi has turned around a corrupt and ineffective tax collection system to comply with the demands of East African Community (EAC) membership and modernise its public spending. The facility which was officially opened in mid-2014 boasts of a gleaming new ambulance parked outside the emergency area, new beds, mattresses, furniture and equipment, flowers budding along its tidy walkways and grass taking root in open areas. “This facility, paid for entirely from domestic funds, would never have been possible without the leadership of the government and the hard work and dedication of the OBR (Office Burundaise des Recettes – Burundi Revenue Authority) says OBR Commissioner General Dr. Domitien Ndihokubwayo.” Over the last four years, the government has moved closer to its target of funding its own spending 100% from its own tax and customs revenue. OBR has been supported by TradeMark Africa as part of its programme to help EAC governments and private sector institutions modernise and improve...