Rwanda
is part of a major Free trade agreement, the COMESA.
How would you evaluate the impact that COMESA has
had so far on the Rwandan trade level?
As you know, Rwanda took a major
step to enter the Free Trade Area at the beginning
of the year 2002, in January, when we published
our 80% Tariff reduction on intra-COMESA trade.
We shall be part of the FTA in 2004 after 100% reduction
of intra COMESA tariffs and taxes of equivallent
value. I think it is very difficult to make an evaluation
now, but what I can say is that there are many opportunities
for Trade, especially in terms of acces to a wider
market. The Rwandan market is very small in terms
of size and number of consumers and also in terms
of the purchasing power of the citizens. I believe
it is very important and crucial for our factories
and industries to have access to a bigger market.
Do you believe Rwanda has the potential and the
capacity to enhance exports from local industries?
First of all, we think in terms of export promotion,
but we also have to understand that there are other
benefits for industries because the raw materials
will be cheaper than they are right now, and thirdly
when you look at the service industry, Rwanda has
a lot of human resources and the future will be
determined by that sector. We believe that we have
a chance to play a role in that sector within the
COMESA region.
Considering the fact that Rwanda has a very small
market, aren't you afraid that the larger neighbouring
countries may reap more benefits from COMESA than
Rwanda?
In the beginning, this will be the case. Countries
like Kenya and Egypt will take advantage. But it
will also depend on the way we prepare our industries
and our entrepreneurs so that they may compete for
that market. One has to enter, and then play. I
believe that what we have seen in the last years
and the commitment of both public and private sectors
might give us a chance to win. In the long run in
many cases it is the small economies that reap more
benefits, on a comparative basis
What have been the conditions negotiated with
the COMESA members for Rwanda to enter the FTA?
What we have proposed up to now is to enter the
free trade area in three phases. The first one is
based on 80% tariff reduction by this year. The
second phase is scheduled for 2003 and it will be
based on 90% tarif reduction. The third year it
will be a 100% reduction. This will allow Rwanda
not to enter abruptly into that market. It will
give us three years to ensure that our industries
are being developed in order to enter into competition
with the others. It does not mean that we will retain
all our industries. Some might die. But we believe
that other industries will play a significant role
in this process.
Do private companies have the same vision about
COMESA? Are they prepared enough?
I believe COMESA is welcome into Rwanda, and it
is a very good thing for our country.You must remember
that Rwanda has been a member since 1993. What is
important is how we prepare ourselves to be more
competitive on that market. We need to be aggressive.
We need to invest, and we need to be more innovative
in the way we are going to market our products in
this large regional market. I have a few examples
of factories that are doing well now. For example
the cement factory. We have a market in Burundi,
Congo. Other enterprises are exporting cosmetics,
cloth, mattress, beer and food stuffs to neighbouring
COMESA countries. These companies must have the
vision of increasing their share of the market.
What are the main conditions to create a healthy
competition?
We believe that first of all we must work hand in
hand with our private sector. We also realize that
the Government cannot restart all the factories
which have been closed since 1994. So it is important
for us to ask the private sector to restart those
factories and industries. They must also be agresive
in looking for foreign investment partnerships.
The role of the Government is to put in place a
conducive environment and to fight problems related
to fraud, bribery, etc.
You mean, for example, enhancing law enforcement?
That is right . Plus enhancing tax administration
and transparency.
What are the guaranties for the protection of
foreign investments?
When it comes to protection of foreign investments
we have first of all several laws. You know that
one can repatriate one's benefits unconditionally,
you can change your money, exchange of foreign currency
is liberalised. We are also member of the African
trade Insurance Agency that is based in Nairobi.
ATIA is there to protect investors against political
risks. The reason why we subscribed to that insurance
is to help investors to feel more confident when
they come here because some one of them think that
there is insecurity in Rwanda. Once they can insure
their investment against those political risks then
they feel more confident, because commercial risks
are insured by other forms of insurance. In addition
to that, we have signed bilateral agreements with
countries for mutual protection of investments.
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2001
was the 30th anniversary of the bilateral cooperation
with China and you accompanied the President of
Rwanda to visit the country. What type of relationship
are you building with China and with Asia in general
?
Asia is a huge market. We visited China a few months
ago last November. It is true that Africa is far
behind because America and Europe are already there.
But we still believe that for a country like Rwanda,
we will not suffer from lack of market for what
we can produce,especially our traditional products,tea
and coffee. What we are looking for is how best
we can enforce our presence there, and how we can
get into partnership with chinese operators.
In 2000, The US introduced the American Growth
and Opportunity Act favouring trade between the
US and Sub SaharanAfrica. How can Rwanda benefit
from this initiative?
The African Growth and Opporutnities Act is mainly
focusing on textiles. Here, we only have one textile
factory. The demand is there, but we need to ensure
that what we are going to produce here will be acceptable
to customers there. We have some countries particularly
Asian, who've been exporting products to the USA,
yet those countries are not eligible to export their
products free of taxes. This is why we feel that
a partnership with these investors or with countries
like Mauritius who have exported to the USA can
help Rwanda to start its exports. We are in contact
with investors from different countries, so that
they can come and work in partnership with Rwandans.
There is also the leather industry. In Rwanda we
have a large number of cows, sheep and goats. We
have a leather factory. We produce good leather,
but we do not produce final products. If we can
add more value to those leather products and be
able to sell them on the US market. There are other
items that are eligible to enter the US market free
of charge, and free of taxes under the generalised
system of preferences(GSP) scheme, in which currently
only Sub Saharan Africa is beneficiary. And in that
context, we believe that our crafts will be highly
appreciated american citizens.
What type of cooperation are you building with
Europe?
In Europe we especially have close relations with
Italy and Germany. We are already working with them.
We have a web site with crafts, featuring men and
women in Butare that deal in crafts.
The tourism industry has a high development potential.
What are your main priorities in terms of incentives
to attract foreign investors in the tourism sector?
In the tourism sector we face several problems;
the most important is that we have to ensure that
the product related to tourists is quite good. We
are now working hard on rehabilitating tourist sites,
building Rwanda's image outside
Have you been able to measure the impact of your
promotion activities?
Yes, but it is not always easy. What I can say is
that the number of tourists who have been visiting
our parks, eg the Virunga National Park for the
last six months has increased . We have an increased
number of Rwandans who decide to spend the week-end
in Kibuye, or at Akagera Park. The sector is taking
off. This is good, it gives us time to take care
of different aspects. Concerning the investors,
first of all regarding construction, we provide
them with plots without any difficulty. The process
is quick for those who want to build hotels and
other facilities. According to the investment law,
they do not pay taxes for equipment, and lastly
the Governement itself is investing in Tourism promotion.
What is your main ambition for the tourism sector
in the short run?
In 1989, the tourist sector was the third, in terms
of export products, after coffee and tea. I believe
that it is still possible. We still have some assets.
We are now working on establishing good quality
services. I believe that the tourist sector will
become one of the most important pillars of the
economy. However, we need to realize that the tourist
sector is an industry that is fragile especially
when it comes to security problems.
This means that to ensure that the tourism sector
is developed in a proper way, we have to continue
to invest in security and peace in the country and
in the region. This is very important and crucial,
and we hope that those tourists that started visiting
Rwanda as a result of the promotions we did in London
and Berlin will be our Ambassadors, by helping to
change the false image about Rwanda that I mentioned
earlier.
NOTE: WINNE cannot be held responsible for the
content of unedited transcriptions. |
