The traders held a meeting on Friday sought to enhance Rwandan Export potential to India and boost the Rwanda export sector.
According to Francois Kanimba Rwanda minister of trade and industry, exporters will benefit from the existing export agreement between Rwanda and India.
The agreement indicates that Rwanda exporters will benefit from a Duty Free Tariff Preference (DFTP) facility, a trade arrangement that facilitates access to over 90 percent of Indian market duty free.
“I believe this arrangement will enhance Rwanda’s exports to India with a large scope and simplified rules of origin,” said Kanimba.
Rwandan business community is optimistic that the project presents substantial economic and trade benefits.
“The Indian market has potential and we need to extend our network and explore the available market opportunities,” said Violet Uwimana, a florist dealer.
She noted that she is looking forward to develop trade links and market her products across Indian states.
The market share for Rwanda’s exports to Asia increased to 21 percent in 2013 from 11 percent in 2012, driven by the boom in mineral exports.
“This is a great opportunity for us to expand our market reach and make sales. We want to create strong links with Indian traders and boost our potential,” said Gaspard Byumvuhore, a dealer in coffee exports.
Boosting exports, which is one of the key goals under Rwanda’s Vision 2020 and the second Economic Development and Poverty ReductionStrategy (EDPRS II).
Rwanda’s export earnings are mainly from traditional exports of coffee, tea, cassiterite, coltan and wolfram, which are not sufficient enough to offset the trade deficit.
The small central African country targets to increase exports’ receipts to 764.4 million U.S. dollars in 2015 in order to narrow the country’s trade deficit with the import bill going up by 6.8 and 3.7 percent in terms of volume and value, respectively.
Rwanda trade deficit was at 292.75 million U.S. dollars in the first quarter of 2015, which is 5 percent smaller than the deficit of the first quarter of 2014 which was 309.06 million U.S. dollars.
The country’s economy has maintained average growth of 8 percent in the past 10 years save for last year’s slowdown attributed to delays and suspension in disbursement of donor aid in 2012. Enditem