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African countries find business opportunities at service trade fair
Rwanda made a splash during the China International Fair for Trade in Services (CIFTIS) in Beijing. Interested business people flocked to its investment and trade promotion seminar on September 6 and raised a lot of questions. The event had to be greatly extended from its initially planned 1.5 hours. After its close, James Kimonyo, Rwandan Ambassador to China, and Samuel Abikunda, Commercial Counselor of the Rwandan Embassy in China, were still surrounded by crowds of people waiting to talk to them.
“I can feel that many people are serious about cooperation, so we will stay in touch with them. If they need local cooperation partners, we will help find competitive and reliable enterprises to connect with them,” Abikunda said.
Located in East Africa, Rwanda has made notable progress in development, ranking second and first in the continent for economic growth rate and government transparency, respectively. Seventy percent of the population is under 30 years, and 95 percent of the country is covered by 4G network. Boasting such a sound business environment, Rwanda is confident that it can attract investment from China.
“Chinese companies can invest in e- commerce by taking advantage of Rwanda’s mobile Internet facilities. Many Chinese enterprises are also interested in areas like medical care and transportation,” Kimonyo told Beijing Review. The ambassador recommended Rwandan coffee, chili sauce and other special local products during talks with potential investors after the promotion seminar.
Many other African countries also sought out business opportunities at CIFTIS held on September 4-9. Former World Bank economist Mwangi Wajira said the event provided a powerful platform for African airlines, banks and logistics companies to develop cooperation with Chinese companies. More importantly, China’s 5G, big data and cloud computing capabilities, which were highlighted at the fair, could create fresh opportunities for economic and social growth for African countries, he added.
Building closer links
Rwanda suffered a great deal of domestic turmoil. Since 1996, the people have put great effort into rebuilding their country and resuming the economy under a new government. After a series of reforms, Rwanda is now one of the best places to do business in Africa.
According to a World Bank report, Rwanda ranks second in the ease of doing business index among African countries this year, second only to Mauritius, and first in East Africa.
“You can be working for others when you get up at 6 a.m., but by noon, you can
have your own company and become a CEO,” Abikunda said. In Rwanda, it takes just six hours to register a company and the whole process can be completed online.
Chinese i nvestors can focus on Rwanda’s manufacturing, energy and mining, agricultural products processing, infrastructure and tourism industries, Kimonyo suggested. Moreover, the country is an entry point to greater business opportunities on the rest of the African continent, he added.
Rwanda is a member of the Eastern Africa Community and part of the Common Market for Eastern and Southern Africa, which covers a population of about 500 million. The African Continental Free Trade Area (AFCFTA), which was officially launched on May 30, 2019, will cover 1.2 billion people once all participating countries approve it. That means that when foreign enterprises register and invest in Rwanda, they will also gain potential access to other African markets. “The AFCFTA is set to facilitate cross-border trade activities,” former Chinese Ambassador to Kenya Guo Chongli said at the Fifth Africa Theme Day Forum on September 7, which was part of CIFTIS.
Guo was positive about Africa’s huge potential in the digital economy, citing the fact that Africa is the second largest mobile phone market after Asia, and it’s also the world’s fastest-growing mobile telecommunications market.
Moreover, e-commerce is developing very rapidly in Africa, and its advantages have been fully demonstrated during the novel coronavirus disease (COVID-19) pandemic. “Industries performing prominently during the pandemic, such as online education, cross-border e-commerce and cold chain transportation, will be the focal points of future cooperation,” Guo said.
The forum enabled communication and information sharing between Chinese and African participants on their countries’ business environment, according to Mamadou Sarr, Commercial Counselor of the Senegalese Embassy in China.
Revitalizing tourism
Black wood carvings from Angola, African drums from Zimbabwe and other local cultural and special food items were on display at the Fifth Colorful World Cultural Exhibition of Countries Along the Belt and Road, which was held on the sideline of CIFTIS. The exhibits were from over 30 African countries and regions, including Algeria, Togo, Ghana, Sudan, Namibia,
Ethiopia, Botswana and Burkina Faso. African singers and dancers were invited to present performances featuring tourism and cultural resources of their countries.
Tourism is as an important area of trade in services. According to a report released by the China Youth Travel Service in 2018, the annual growth rate of Chinese tourist arrivals in Africa surpassed 40 percent in recent years. Chinese tourists are not only interested in natural sites but also in cultural heritage attractions.
“Today we have a great opportunity to gather here and deepen the understanding between our two peoples,” Marcelina Gomes, Cultural Attaché of the Angolan Embassy in China, told Beijing Review. “We showed tourism-related photos, artworks and books, hoping to find what interests Chinese people the most and therefore is able to attract more of them to travel and learn about Angola’s culture.”
Rwanda also promoted tourism during CIFTIS with a poster of three silverback mountain gorillas greeting attendants at the venue of its promotion seminar. The gorilla is one of the most endangered animals on
Earth and according to Abikunda, Rwanda is one of the few countries where silverback mountain gorillas live.
“The entire gorilla family can easily be seen in Rwanda and many people travel thousands of miles to see them,” he said, adding that investment in tourism can drive development in related fields, such as catering, accommodations and culture.
Zhang Yaodong, a Chinese businessman who opened the first five-star hotel in Rwanda, Rwanda Marriott Hotel, has benefited greatly from its preferential policies for foreign investors. His hotel opened in 2016 and the business has been good. “I am in the midst of my second project in Rwanda now. It is a comprehensive property project, with apartments, hotels and villas,” he said.
As Chinese investors continue to expand their business in Africa, the hope is that it will lead to greater mutual understanding and benefits.