He had been serving as the Director for Institutional Matters and Programmes Coordination at the African Continental Free Trade Area (AfCFTA) Secretariat.
Sebahizi's appointment was part of a broader cabinet reshuffle that also saw Richard Nyirishema appointed as Minister of Sports, replacing Aurore Mimosa Munyangaju, and Ambassador Christine Nkulikiyinka taking over as Minister of Public Service and Labor from Prof. Jeannette Bayisenge.
On Monday, August 19, 2024, Minister Sebahizi was sworn in alongside 21 other cabinet members, the majority of whom returned after reappointment following President Kagame's re-election to serve a new five-year term.
In an exclusive interview with IGIHE, Sebahizi, shared his ambitious plans for steering the country toward a more balanced and prosperous economic future.
With over two decades of experience in fields related to trade and industry, his return to the ministry (this time as minister) is seen as a homecoming to where his career in public service began.
As Rwanda grapples with challenges such as trade imbalances, market fluctuations, and the need for greater industrial productivity, Sebahizi is focused on building on the achievements of his predecessor while addressing these issues head-on.
Reflecting on his journey, he likened his appointment to a natural progression and expressed his delight at returning home to serve Rwandans after spending ten years working outside the country.
Controlling inflation and market stability
Sebahizi has a clear vision for his tenure, with a strong focus on stabilizing market access, particularly for agricultural produceâ€"a sector that forms the backbone of Rwanda's economy.
As per 2023 statistics, agriculture accounted for nearly 27% of Rwanda's GDP and employs over 60% of the workforce, making it a critical area for national development. However, the sector faces significant challenges.
Early July, the Consumer Price Index report from the National Institute of Statistics of Rwanda (NISR) indicated that inflation in Rwanda's urban areas increased by 5% over the past year.
The report shows that inflation in urban centres was driven by an increase in the prices of food and beverages, as well as transportation costs.
Between June 2023 and June 2024, the prices of food and beverages increased by 3.1%, while transportation costs saw a significant increase of 23.2% over the past year.
"My top priority is to build on our achievements and ensure ongoing projects do not stall, while pushing for greater progress. Another key focus is addressing issues in the ministry, particularly in managing the supply chain for agricultural produce. Inconsistent availability and occasional oversupply can strain the market, leading to spoilage and price hikes, which adversely affect farmers. This needs urgent action," he noted.
To address these issues, the Minister emphasized the need for collaboration with relevant institutions including the Ministry of Agriculture, Ministry of Local Government and ministry of Finance and Economic Planning particularly in fast-tracking the implementation of measures to ensure market stability.
"The government is constantly monitoring the situation and taking measures to prevent inflation," he assured. One strategy mentioned by the Minister involves working with regional bodies like the East Africa Commodity Exchange to store surplus produce and release it to the market when needed, thereby stabilizing prices.
Tackling trade imbalance
One of the key priorities for the new Minister is addressing the trade imbalance that continues to affect Rwanda's economy. While Rwanda's economy has experienced an impressive growth rate of over 8% annually for the past decade, the country's reliance on imports remains a challenge.
Rwanda's trade deficit soared to US$ 411.62 million in June 2024, reflecting a 30.88% increase compared to June 2023 and a 13.71% rise from May 2024. This expanding deficit underscores the growing disparity between imports and exports, influenced by various factors including fluctuations in domestic exports and escalating imports.
"There's a common misconception in Rwanda that trade is synonymous with importation," Sebahizi explained.
"True trade is about putting our locally produced goods into both local and international markets." The Minister highlighted the importance of initiatives like 'Made in Rwanda,' which aims to reduce dependency on imports and promote locally produced goods. By strengthening local industries and encouraging Rwandans to consume homegrown products, the Minister hopes to improve the balance of trade and bolster the economy.
Harnessing the potential of AfCFTA
Sebahizi is particularly optimistic about the opportunities presented by the African Continental Free Trade Area (AfCFTA). With a market of over 1.4 billion people, the AfCFTA offers a unique opportunity for Rwanda and the entire continent to enhance trade and investment.
However, the Minister emphasized the importance of developing local industries to fully capitalize on this opportunity.
"Africa holds immense potential in terms of resources and manpower," he stated. "The challenge lies in investing in and promoting local industries. By establishing and nurturing local industries, we can ensure that the benefits remain within the continent, creating long-term value for our people."
Enhancing industrial productivity
Rwanda's industrial sector has seen significant growth, with the establishment of several industrial parks across the country. These parks are essential to the nation's economic growth, providing infrastructure for manufacturing and other industries.
However, Minister Sebahizi acknowledges that there is still much work to be done.
"Infrastructure development is an ongoing process," he noted. "We must prioritize these developments to ensure that we can continue to build a strong, diversified economy."
In 2023, Rwanda's GDP reached Rwf 16,355 billion, with the industrial sector contributing 22%.
IGIHE
