SMES told to make use of AfCFTA fund as Rwanda’s merchandise exports to Africa reach $306m

By Michel Nkurunziza.

East African Business Council (EABC), in collaboration with the European Union Technical Assistance Facility (EU-TAF) is training SMEs in Rwanda on AfCFTA Guided Trade Initiative, Adjustment Fund, and Value Chain Integration.

The outcome could help Rwandan SEMs tap into   AfCFTA market and increase exports as Rwanda’s merchandise exports to Africa reached $306 million in 2023.

Recently EABC hosted a two-day high-level sensitization event aimed at raising awareness about the African Continental Free Trade Area (AfCFTA) opportunities for East African private sector players.

The event brought together key stakeholders from the region’s business community, business membership organizations (BMOs), and government representatives to discuss strategies for maximizing the potential of the AfCFTA through the Guided Trade Initiative (GTI) and integrating East African Community (EAC) priority value chains into the AfCFTA trading arrangement.

Geoffrey Kamanzi, Policy Manager for Trade in Services at the East African Business Council (EABC), underscored the AfCFTA’s role as a transformative opportunity for Africa’s economy.

He urged participants to explore the benefits of the AfCFTA Guided Trade Initiative and the Adjustment Fund, which are designed to support the private sector’s integration into continental trade.

“With a combined GDP of USD 3.4 trillion and 1.3 billion consumers, the AfCFTA is poised to boost Africa’s economies and position the continent as a key player in global trade. This workshop is an invaluable opportunity for Rwandan traders to learn about the AfCFTA, as Rwanda’s merchandise exports to Africa reached USD 306 million in 2023, up from USD 286 million in 2022, according to the EAC Trade and Investment Report 2023,” said Kamanzi.

Expressing gratitude to EU-TAF for its financial support, Kamanzi reiterated the EABC’s commitment to fostering a competitive East African private sector.

He encouraged participants to actively engage in discussions and share knowledge gained to enhance intra-African trade.

Freddy Murigande, Trade Negotiation and Cooperation Specialist at the Ministry of Trade and Industry, highlighted AfCFTA’s crucial role in Africa’s economic development.

He underscored Rwanda’s active participation in the Guided Trade Initiative alongside other EAC Partner States, which is currently facilitating the export of products such as tea and coffee to new markets through the AfCFTA trading arrangement.

“The AfCFTA presents a vast market, but to benefit from its opportunities, we must overcome logistical barriers and explore regional value chains to maximize this potential,” Murigande remarked.

He also encouraged the private sector to actively engage in AfCFTA-driven trade and explore funding opportunities through the AfCFTA Adjustment Fund to boost competitiveness.

The event brought together over 40 private sector representatives from diverse industries, including manufacturing, agro-processing, SMEs, creative industries, and transport. Supported by the European Union’s Technical Assistance Facility (EU-TAF) and GIZ, the workshop aimed to equip participants with the knowledge and tools to effectively harness the benefits of the AfCFTA for regional and global trade success.

The East African Business Council (EABC) is the regional apex body of private sector associations and Corporates from the 8 East African countries.

It was established in 1997 to foster the interests of the private sector in the integration process of the East African Community.

EABC vision is a borderless East Africa for business and investment. The primary mission is to promote sustainable private sector-driven growth in the EAC. www.eabc-online.com