Rwanda, Zimbabwe seek to strengthen business ties

Last week in Kigali, Rwanda and Zimbabwe held the first Trade and Investment Conference as the two countries seek to strengthen business ties. There is a conviction that as countries embark on a recovery path from Covid-19, more partnerships will be critical to achieve sustainable growth. CNBC Africa’s Julius Bizimungu filed this report.

Mon, 04 Oct 2021 12:00:57 GMT

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AI Generated Summary

The Trade and Investment Conference aimed to enhance collaboration in trade, investment, and tourism between Rwanda and Zimbabwe.
Both countries are leveraging their respective strengths in sectors like construction services, agriculture, manufacturing, and energy to foster economic partnerships.
The private sector is optimistic about the potential for growth and mutual benefits resulting from the renewed political ties and collaborative efforts.

In a bid to strengthen business ties, Rwanda and Zimbabwe recently convened the first Trade and Investment Conference in Kigali. The event aimed to foster collaboration between the two nations as they navigate their recovery from the impacts of the COVID-19 pandemic. CNBC Africa's Julius Bizimungu delves into the details of this crucial partnership. The overarching goal of the conference was to establish robust networks that would bolster trade and investment activities between Rwanda and Zimbabwe. Both countries recognize the significance of these collaborations in building sustainable growth trajectories post the pandemic. Key areas of focus include trade, investment, and tourism opportunities that can bring economic prosperity to both nations. This initiative stems from a Memorandum of Understanding (MOU) signed earlier in March between Zimtrade and the Rwanda Development Board. The MOU outlined the framework for private sector engagement, paving the way for discussions on potential business ventures and joint projects. Rwanda aspires for Rwanda to become one of its top ten trading partners, with a target of exceeding $100 million in trade between the two countries. Currently, trade volumes remain low, with exports from Zimbabwe to Rwanda valued at around $16 million, while Rwanda's exports equal a mere $1,000. To bridge this gap, both nations see vast opportunities in sectors like construction services, agriculture, manufacturing, and tourism. Zimbabwe offers expertise in mining, agriculture, and energy, making it an attractive destination for investment. The country's focus on renewable energy sources like solar power presents lucrative prospects for collaboration with Rwanda, such as the planned installation of a 25-megawatt solar power plant in Gwero. Similarly, Rwanda's strong agricultural sector provides avenues for agro-processing ventures with Zimbabwe. The private sector from both countries is enthusiastic about the potential unlocked by this renewed political partnership. Rwandan stability and market potential attract Zimbabwean businesses looking to expand regionally. Conversely, Zimbabwe's expertise in mining and agriculture, coupled with its energy capabilities, appeal to Rwandan entrepreneurs seeking new opportunities. The collaboration extends beyond economic endeavors to include knowledge sharing and capacity building initiatives. The alignment of business interests with political intentions sets a promising foundation for sustainable growth and mutually beneficial outcomes. While challenges like trade volume disparity and sector-specific limitations persist, the commitment to fostering stronger ties underscores the shared vision for economic prosperity in Rwanda and Zimbabwe.