The project aims to streamline cross-border trade by removing Non-Tariff Barriers (NTBs) and automating trade processes, providing a much-needed boost to Rwanda's economic growth. A key component of the new project is the automation of cross-border trade processes.
Rwanda has already implemented an Electronic Single Window system to simplify international trade, and the project will enhance this system further. The upgraded system will allow businesses to submit all required import and export documents through a Single Transaction Portal without physically visiting different agencies.
Approvals will be granted within 24 hours, and traders will benefit from advance clearances for their goods. The Commissioner General of the Rwanda Revenue Authority, Ronald Niwenshuti, expressed confidence in the project's ability to simplify trade processes.
"RRA has embraced technology not only for customs modernization but also for its entire operations. This phase of Rwanda's Electronic Single Window builds on the very impactful and successful first phase, and we are confident that it will simplify service delivery and further reduce the cost of doing business with Rwanda," he said.
Boneza Umucurizi is implemented by IBI, a U.S. business that works with local experts to drive the interventions. Jackie Zizane, Chief of Party, acknowledged the spirit of collaboration and commitment among stakeholders, which she believes will be vital to achieving the project's objectives.
"We recognize the importance of partnership and cooperation in overcoming the challenges posed by non-tariff barriers. I believe that this collaborative effort will drive significant progress in promoting cross-border trade and economic growth in Rwanda,' Zizane stated.
Keisha L. Effiom, the USAID Mission Director for Rwanda and Burundi, highlighted the significance of a strong private sector for Rwanda's development.
"Projects like this one are key for development: with its laser-focus on fixing the obstacles, it will bring benefits to the private sector, the government, and the Rwandan consumers," she noted.
Effiom emphasized the holistic approach that USAID takes towards development, saying, 'When the private sector grows, the country as a whole prospers, because businesses reinvest their earnings into operations and local communities.'
NTBs are obstacles that increase the cost of doing business, unrelated to the direct payment of tariffs. For landlocked Rwanda, issues such as paperwork and wait times along the major transport corridors to Mombasa and Dar es Salaam ports are a significant burden.
Goods are often delayed for days at border points, resulting in higher costs that ultimately affect consumers.
As such, the Rwandan government has established National Monitoring Committees on NTBs to identify and eliminate these barriers.
The Feed the Future Rwanda Trade Facilitation project will work closely with these committees, strengthening Rwanda's strategy for removing NTBs and improving the overall trade environment.
Another major improvement is the expansion of ASYCUDA World, the Rwanda Revenue Authority's customs software, which will include new features like an Advance Ruling Mechanism. This mechanism allows customs decisions to be made online before the goods even reach the border, reducing wait times and improving efficiency.
The Feed the Future Rwanda Trade Facilitation Activity is a four-year project funded by the United States through USAID, with a budget of $5 million. Its goal is to eliminate NTBs, increase the automation of cross-border trade, and promote seamless and efficient trade processes that benefit Rwandan businesses and consumers alike.
By improving the efficiency of trade and reducing the costs associated with border crossings, this initiative will position Rwandan companies for greater success in international markets and contribute to the overall economic growth of the country.
Sam K Nkurunziza
