Advertisement

Burundi refugees boon for trade

Saturday February 06 2016
RWAAcacia(2)

Acacia Book Café in Kigali. The coffee shop is run by a Burundian refugee living in Rwanda. PHOTO | CYRIL NDEGEYA

Less than a year since the Burundian refugees started fleeing to Rwanda to escape a political crisis in their country, the impact of their presence is already being felt in the Rwandan commercial scene.

The Burundian refugees have generally settled in well, with some, especially those living in urban areas such as Kigali and Butare, embarking on commercial activities. While some got jobs and others are pursuing studies, many have started businesses.

“I had a business back home where I traded in juices,” said Divine Inamahoro, the co-owner of Acacia Book Café at Kisementi, Kigali. “When the crisis began and we came here, I shared ideas with my cousin and we developed a business concept of a hybrid of a bookshop and a café and we started it; it’s doing well so far.”

Ms Inamahoro said her flight to Rwanda, though under unpleasant circumstances, has awakened her and many other Burundians to the opportunities outside their country with many taking advantage of the enabling business environment in their home away from home.

“Many of us have exposure, and now a platform to put our ideas into action,” she said. “The government of Rwanda has been very supportive by easing registration of our businesses.

“Many other Burundians have opened shops, restaurants....”

Advertisement

The presence of the refugees, especially in urban areas, has boosted sectors such as services, commerce and real estate. At the height of their incursion, rent went up and there was a scarcity of rental houses in Kigali as many were taken up by them.

“It’s unfortunate what is happening in their country, but because Burundi is a member of the East African Community, it was easy for them to come and even start businesses here,” said Robert Opirah, the director-general of trade and investment at the Ministry of Commerce and Trade. “Others just continued the businesses they were running back home.

“They are mainly in retail and resale trade. When they do business, they are giving our people jobs, they are paying taxes, and the boost in the purchasing power is something we need.”

Mr Opirah added that, even though it is too early to gauge the impact of the Burundians on the economy, in general, they have created increased demand for goods and services.

“Although they came in unfortunate circumstances, we have to appreciate that their coming created increased demand for real estate,” said Mr Opirah. “I hope Rwandans will learn from this and invest more.

“Some of the bars have been complaining of lack of clientele and others closing down; it’s good that we have been able to match that demand with supply. This shows that Rwanda is ready for business.”

Updated data obtained from the UNHCR website on January 27 shows 71,948 Burundian refugees were residing in Rwanda then.

Since the crisis begun last April after President Pierre Nkurunziza announced he would run for a third term in office, which he ultimately got, about 400 people are reported to have been killed and about 230,000 displaced.