Rwanda appreciates the exports costs cuts to USA

This opportunity has given to Rwanda in the framework of the African Growth and Opportunity Act (AGOA) that helps African based products to USA. In the end of the August, 2015, the USA has reduced the costs of African exports to enter the USA market.

Formerly the African products were highly required to fulfill international standards for the agricultural, animal based products and industrial products to enter the USA but this obligation penalized most African nations as their economy and technological advances are still under processes.

The11 kinds of products allowed to massively enter the USA market include shoes, jewels, fashion based items, among others.

In 2015 President Obama extended the expiration date of the AGOA agreements with African products and allowed eleven more products to enter the USA market, making the allowed products to increase from 11 to 27 products.

Rwandan Minister of trade and commerce Francois Kanimba told media that concerning Rwanda, these new products allowed to be exported to USA include garments made from cotton, bags, and agriculture based products, among others.

However some African nations are less benefiting from the AGOA initiative as their internal GDP still faces challenges.

These nations include Rwanda that has few exporters who can afford to produce more and export more accordingly.
One of them is Gilbert Kubwimana who heads the Songa Designs Rwanda company that export traditionally made baskets and jewels to USA.

He confessed that his company lacks enough means to purchase law materials that are useful in the effective manufacturing of the items to be exported to USA.
Consequently the company doesn’t satisfy the growing USA market.

The air transport cost is also a huge challenge the company endures, he adds.
Kubwimana revealed, however, that his company and the ministry of commerce and trade uphold talks on how the above challenges can effectively be managed.

One of options at the table includes making a one strong cooperative of exporters so as to export their products within one container and therefore reduce the cost.

Rwandan exporters were also urged to increase the quality and quantity of their products to export so that the USA buyers might find lasting items to buy.

For the Rwandan government side, Minister Kanimba promised more facilities for exporters so to allow them overcome the mentioned hindrances.

This was backed by the USA ambassador Erica Barks-Ruggles who affirmed that the USA is willing to increase the number of items that sub Saharan African nations export to USA.

Among nations to benefit from this USA initiative include Rwandan through what Minister Kanimba labels ‘Rwanda AGOA Business Plan.’

This new platform will allow Rwandan exporters to export more and innovated products to USA.
The Rwandan exports increased from 21.9 million $ in 2010 and it reached 46.8milion $ in 2015.

UM– USEKE.RW