As Rwanda looks to exploit the market opportunities in the Economic Community of Central African States (ECCAS) countries, a bloc it rejoined last year, getting the right quantities of products to serve and sustain this market remains a problem.

The government has lobbied for external markets for Rwandan products as part of big market blocs like the Common Market for Eastern and Southern Africa (Comesa), the East African Community (EAC), CPGL, Agoa and other European markets. However, the low quantities taken have left the markets largely unexploited by Rwandan traders.

Studies into the ECCAS market have shown that Rwanda traders can export horticultural products, meat, fruits and other agro-processed products into the bloc.

“Our biggest problems are low quantities and high transport charges. Our quantities are still not sufficient for the markets, and the government and other parties are doing what they can, but we still need to raise quantities to sustain these markets,” said Jeffrey Kamanzi, the director of trade and business development at PSF.

“We are ready to exploit the ECCAS market. The central African countries are okay with our products. We can take horticulture products, meat, fruits and other products. The exporters are ready, what is left is to the regulators,” he added.

He said much as Rwanda is already a member of the bloc, which includes Angola, Burundi, Cameroon, Central African Republic, and Congo, among others, regulations like preferential agreements, rules of origin, and common external tariffs have not yet been finalised.

Mr Kamanzi also said that even though the quantities are low, Rwanda’s products have significantly improved in quality and will not have any issues competing in ECCAS.

“The product competitiveness is growing, for example Inyange products. The other difficulty is that we have limited warehouses,” he added.

He noted that exporters have also faced the challenge of not having reliable distribution channels in the member countries. PSF and the government are working to establish service centres which will work like one-stop shops for all Rwandan products.

Rwanda was a founding member of ECCAS in 1983; however, it pulled out of the bloc in 2008 to concentrate on its membership to the EAC and Comesa.

The Minister of Trade Industry and East African Community Affairs, Francois Kanimba, said Rwanda joining ECCAS presents big opportunities for local traders and producers since it comes with an expanded market reach for their products.

The ECCAS commission was recently in the country to discuss issues around the free trade area accorded to member states, which is scheduled to start in January 2017.

Member states are required to provide a list of products that they would like to export in order to receive a tax waiver. The bloc presently offers duty-free reductions to the member states’ business community.

Some member states have expressed discomfort on the removal of taxes on certain products, which are their key sources of revenue.

The ECCAS bloc resolved that member states will adopt an external common Customs tariff to be imposed on the third countries; 50 per cent will be used to fill any revenue loss within the member countries, and other 50 per cent will be used for the operations cost of the bloc secretariat.

The central African region is rich in mineral resources, but its agricultural sector is not well developed and it needs much effort because they still import much of their food from other countries. Many goods are imported from Europe, hence presenting great potential for Rwandan exporters.

The country faces the task of stemming its growing trade deficit; data from the central bank shows that it rose by 5.1 per cent in the first half of 2016, from $858.98 million to $ 902.69 million, as formal imports grew by 3.3 per cent in value and formal exports value dropped by 2.4 per cent.

In the third quarter of 2015, Rwanda exported goods worth $96.14 million, imports totalled $481.10 million and re-exports were at $46.01 million. Experts have said that if the trend is not reversed, it is likely to hamper the country from achieving the 28 per cent export growth target by 2018.

Banks have expressed concern about low credit appetite from exporters, who have shunned growth facilities, and other credit products designed to spur exports.

The ECCAS market has the potential to significantly turn around Rwanda’s export fortunes, but this will only be possible if the country reverses its agricultural production deficits that have stagnated for the past few years.