Botswana, Rwanda identify increased trade potential
Bilateral trade between Botswana and Rwanda remains minimal despite having export potential estimated at USD367.76 million. Currently, trade between both countries stand at a meagre US$ 77 000, with imports from Rwanda to Botswana at US$ 10 700. Botswana export basket to Rwanda on the other hand, comprises of boats and floating structures and electrical appliances. Boats and floating structures forming bulk of the trade at US$ 53, 187. Other products include cereals, fertilizers, pharmaceuticals products, machinery and electrical products, and services include education, STEM Technology and Tourism.
Executive Director, Brand Management, Kutlo Moagi says this presents huge investment opportunities for Botswana companies aspiring to trade or export their products and services to Rwanda.
According to Moagi, findings of a recent market scoping exercise to ascertain the extent of opportunity to do business between the two countries indicate that trade between Botswana and Rwanda is low and needs to be enhanced. It is for this reason that Botswana’s investment agency, Botswana Investment and Trade Centre ( BITC) in collaboration with Rwanda Development Board ( RDB) recently hosted an Investment and Trade Conference and Business- to- Business meetings between Botswana companies and their Rwandan counterparts in Kigali, Rwanda. The meetings were to encourage business between the two countries with a view to facilitate trade and investment, as well as for possible joint- venture partnerships. Moagi adds that sectors of interest included: Agriculture and Agro- processing, Tourism and Hospitality, Mining and Mineral Beneficiation, Manufacturing, Information and Communications Technology ( ICT), Fast- Moving Consumer Goods ( FMCG) and Financial and Business Services. In an effort to further facilitate trade between the two countries, BITC- RDB MoU was signed on the 29th April, 2022 to strengthen collaboration between the two Investment and Trade Promotion Agencies, as well as to stimulate trade and investment between both countries.
“Some of the salient areas of collaboration include exchange of information on trade and investment opportunities, bench- learning and experience exchange and co- hosting of investment and trade promotion events and missions, among others.” According to Moagi, Botswana sent a delegation of 50, comprising of a total 27 local companies from Botswana private sector. “The platform also allowed for business networking and subsequent engagement of the private sector beyond the Rwanda mission. Trade and Investment Conference was indeed a great success,” Moagi says.
In attendance were senior government officials including Minister of Foreign Affairs, Dr. Lemogang Kwape, Defence Justice and Security, Kagiso Mmusi and High Commissioner of Botswana to Kenya also covering Rwanda, Duke Lefhoko. During the last state visit to Botswana, Rwandan President Paul Kigame and President Mokgweetsi Masisi committed to strengthening bilateral ties aimed at transforming the lives of the citizens of the two nations. At the time the two also witnessed the signing of a general framework agreement covering the areas of trade, investment, health, tourism, mining, peace and security.
Meanwhile, BITC this week signed an MoU with MEDEF International, a French Business Confederation. It is the most representative organisation of the French private sector at an international level tasked to support trade, technologic cooperation and investments, long- term partnerships, especially in emerging and developing markets as well as the reconstruction markets.
Every year the organisation gathers about 7100 French companies already operating throughout the world, in 85 Business Councils headed by 55 CEOs of major international French companies. It receives over 180 incoming public and private delegations and leads close to 25 overseas missions every year. BITC CEO Keletsositse Olebile highlighted at the signing that the MoU will facilitate in the growth of trade and Investment by exposing existing instruments such as the EU- SADC EPA and the Botswana France Double Taxation Avoidance Treaty.
He further highlighted that to date a significant number of French companies have played a critical role in the economy of Botswana, including, Oberthur Solutions that has been printing banknotes for Botswana. Some of the notable French investments in Botswana include, Orange Botswana ( ICT), Mazars, Total, Air Liquide, and Alliance Francaise, amongst others. Olebile further stated that the Centre commits to the implementation of the MoU and further exploit the benefits of working with MEDEF International. He further added that the two parties will operationalise the MoU with immediate effect, and explore short- term activities that could be placed on the calendar of events.
MEDEF International CEO, Phillipe Gautier said the signing is intended to deepen cooperation with Botswana in different sectors such as City Development, Agriculture and Agro- processing, Energy, Digital and Finance. He added that the MoU is critical as it will assist develop value chains for both countries.