Promotion of Trade
Firms responding to the Rwanda Industrial Survey 2012 (RIS) indicated that the supply of domestic inputs has improved in all sectors. Imports account for 27% of all inputs on average, with manufacturing sectors relying more heavily on non-Rwandan suppliers than other sectors.
MINICOM prioritised the organisation of CIP commodity value chains in 2012/13, and all 7 related targets were fully achieved. The Rice Value Chain Policy was developed by MINICOM and adopted by all stakeholders and Ministerial Instructions have been published.
Four cluster value chain frameworks were also developed for maize, cassava, beans and Irish potatoes. Action plans for these were discussed with and approved by stakeholders. A multiinstitutional wheat task force was also established, overseeing the organisation and capacity building in the sector.
In order to improve product quality and compliance, MINICOM conducted trainings for domestic traders on internal trade laws and regulations. The Competition and Consumer Protection Law was officially gazetted in 2012/13 and firms countrywide were inspected on compliance with the law.
The fiscal year 2012/13 also saw the approval of the Downstream Petroleum Law and Policy, determining the regulation of petroleum trade operations in Rwanda.
Total exports grew by 29% to $672 million in 2012/13. Rwanda’s traditional exports of minerals,coffee and tea accounted for 48% of the total, down from 56% in 2011/12 and indicating a more diverse set of exports driven mainly by the agro-processing sector.
Informal exports made up 18% of all revenues. Almost half of exports went to the region, with exports to D.R. Congo reaching $150 million (including informal). The number of exporters increased from 851 in 2011 to 1,294 in 2012/13, although the 13 largest exporters (exporting more than 10 Mn USD) account for 49% of all exports, according to data from RRA.
Formal and informal imports grew by 15% to US$ 2.26 billion in 2012/13, giving a trade deficit (goods) of $1.59 billion. Consumer goods represented the biggest share of imports, whilst intermediary goods have seen the highest growth rate over the four-year period. The trade deficit for services has been decreasing continuously.
Estimates from MINECOFIN suggest that the deficit will have decreased with 8.3% between 2012 and 2013, down to US$ 96 million. Services exports were expected to grow by around 27% between 2012 and 2013, with the share of tourism being relatively steady at approximately 64% of services exports.
MINICOM set 3 priority outputs for the year, with 70% of targets fully achieved under these. The rest were partially achieved. Six cross-border sites were selected for market infrastructure development to boost trade, and MINICOM led export promotion efforts through a series of trade missions and exhibitions abroad (Turkey, Congo-Brazzaville, Gabon). Detailed feasibility studies of the different projects to implement the Trade Logistics and Distribution Services Strategy are at final stage.
Competition and Consumer Protection
• Financial support to two Consumers associations (CHROR and ADECOR)
• Investigations were conducted in Bugarama on cartels involving rice cooperatives and rice traders, in Rubavu for meat butcheries, in Kigali on BRALIRWA-BMC Skol case, etc.
• The Competition and Consumer protection Policy and Law was adopted by the cabinet