Coffee, minerals and pyrethrum are emerging as leading exports to US as Rwanda diversifies into new markets to cushion the economy against the widening trade balance.

The widening trade deficit has put pressure on foreign exchange reserves, which have dropped to 3.6 months cover before picking 3.8 recently. This has also lead to the weakening of the local currency that has depreciated by 7.6 per cent against the dollar.

Data from Ministry of Trade, Industries and East Africa Community Affairs show coffee worth Rwf18 billion was exported to the US, minerals valued at Rwf14.3 billion, pyrethrum 1.6 billion.

The US market under African Growth Opportunity Act (Agoa) is duty free quota free, a type of market Rwandan small, and medium-sized enterprises need to break even.

Rwanda has zeroed on specialty foods, textiles, fashion and home décor, products the country believes it has competitive advantage to export to US. The government is subsidising on costs of production to make the goods more competitive.

“Rwandan producers have a significant competitive advantage from the 0 per cent duty preference under Agoa. We believe the time is right to start exploring markets further afield for our non-traditional export sector and today we are here to discuss opportunities for the specialty food sector to the US,” said the outgoing permanent secretary Ministry of Trade and Industry, Emmanuel Hategeka.

In the East Africa Community, Rwanda is one of the countries that has not fully exploited the Agoa market. Data from USAid shows that the country earned Rwf150 million in 2014 from exports to the US and Rwf350 million in 2015, largely from apparel and macadamia exports.

In the EAC, Kenya is the biggest beneficiary of the Agoa free market, bagging Rwf349 million from apparel exports.

The US ambassador to Rwanda Bark-Ruggles encouraged Rwanda to take full advantage of that opportunity for export, particularly through Agoa, which allows duty-free access for most goods to the US.