Africa (Commonwealth Union) _ Trade between Rwanda and Zimbabwe has surged by 50% over the past three years, owing to concerted business engagement efforts, signalling significant potential to enhance the implementation of the African Continental Free Trade Agreement (AfCFTA), according to officials.
At the third edition of the Rwanda-Zimbabwe Business Forum themed “Shared prosperity: harnessing the potential of Rwandan and Zimbabwean economies,” business leaders and government officials expressed optimism about the opportunities within the existing trade ties.
Since the inception of the annual business forum in 2021, successful engagements have led to partnerships between the private sectors and governments across various sectors, including ICT, agriculture, e-Government, education, energy, and infrastructure.
Zimbabwean companies have invested over $38 million in Rwanda, while eight Rwandan companies have initiated operations in energy, information technology, and agro-processing in Zimbabwe. Moreover, Rwanda has deployed more than 150 Zimbabwean teachers, primarily in teachers’ training colleges. Additionally, 15 energy projects have commenced implementation in both countries.
While trade between Rwanda and Zimbabwe currently operates under multilateral agreements such as COMESA and bilateral relations, Sheillah Chikomo, Zimbabwean Deputy Minister of Foreign Affairs, emphasized the potential of AfCFTA to enhance trade and investment relations between the two countries.
According to Chikomo, Zimbabwe aims to achieve $14 billion in export revenue by 2030, up from $7 billion in 2023. To achieve this target, the focus will be on new products and services in traditional and non-traditional markets, leveraging the market opportunities presented by AfCFTA.
Alexis Kabayiza, Chief Technical Advisor at the Ministry of Trade and Industry, stressed the importance of removing tariff and non-tariff barriers to advance trade activities under AfCFTA. He emphasized the role of the private sector in driving implementation and reaping the desired benefits.
Vincent Biruta, Minister of Foreign Affairs and International Cooperation of Rwanda, highlighted the collaboration’s potential to unlock opportunities, accelerate investment flows, and create an enabling environment for businesses to thrive.
Jeanne Francoise Mubiligi, Acting Chairperson of the Private Sector Federation, identified key sectors for Zimbabwean businesses in Rwanda, including agriculture, agro-processing, seed development, mining, and the service industry.
Kennedy Makahamadze, a Zimbabwean business executive operating in Rwanda, emphasized the evolving partnerships and increased trade volume between the two countries. He underscored the role of business communities in driving AfCFTA through proper instruments and awareness-raising efforts.
With significant milestones achieved in the operationalization of AfCFTA, countries like Rwanda and Zimbabwe are poised to capitalize on the vast opportunities presented by the continental market of 1.3 billion people and a combined GDP exceeding $3.4 trillion.
