Trading coffee under the AfCFTA bloc
In 2022, the first consignment of coffee from Igire Coffee Limited exported to Accra, Ghana marked the formal start of preferential trading under the AfCFTA. CNBC Africa spoke to CEO, Briggette Harrington on the opportunities and challenges within the export market.
Fri, 25 Aug 2023 10:34:28 GMT
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AI Generated Summary
- Overcoming bureaucratic hurdles and logistical challenges in coffee export from Rwanda to Ghana
- Low uptake of trading opportunities under AfCFTA due to size constraints and market access issues
- Inadequate financial support for small and medium enterprises hampers business growth and expansion
In 2022, Igire Coffee Limited made history by exporting the first consignment of coffee to Accra, Ghana under the Africa Continental Free Trade Area (AfCFTA) agreement. This milestone marked the beginning of preferential trading within the bloc and opened up a new chapter of opportunities and challenges for Rwandan exporters. Briggette Harrington, the CEO of Igire Coffee Limited, shared insights on the intricacies of the export process, shedding light on the hurdles faced and the triumphs achieved along the way. The journey of exporting coffee from Rwanda to Ghana was not without its obstacles. From navigating bureaucratic paperwork in Rwanda to finding distribution channels in Ghana, Harrington faced challenges on both ends of the trading spectrum. However, with her extensive experience in international trade spanning over 30 years, she was able to strategize and overcome these barriers effectively. Harrington highlighted the importance of obtaining the necessary export certifications, including certificates of origin, quality, and phytosanitary certificates, to ensure compliance with trade regulations. She emphasized the significance of leveraging the AfCFTA framework to streamline the export process and capitalize on the benefits of preferential trading agreements. Despite being among the pioneering companies to explore trading opportunities under the AfCFTA, Harrington acknowledged that the uptake among Rwandan businesses has been relatively low. She attributed this reluctance to the size of companies and the challenge of finding buyers in target markets. Harrington pointed out that without a customer or consignee for their products, many companies struggle to engage in cross-border trade effectively. Additionally, she noted the financial constraints faced by small and medium enterprises, particularly in accessing capital for investment in packaging, logistics, and market expansion. Harrington lamented the lack of financial support from government institutions or financial entities in Rwanda, underscoring the need for enhanced assistance to fuel the growth of businesses in the export sector. The absence of funding mechanisms has forced entrepreneurs like Harrington to self-finance their ventures, limiting the scale and pace of business expansion. In light of these challenges, Harrington called for greater collaboration between the private sector, financial institutions, and governments to facilitate access to capital and market opportunities for Rwandan exporters. She emphasized the crucial role of supportive policies and initiatives in empowering women-owned businesses, youth enterprises, and small-scale entrepreneurs to thrive in the global market arena. As Rwanda charts its path towards economic development and trade integration within the AfCFTA framework, stakeholders are urged to address the barriers hindering seamless export processes and to foster a conducive environment for sustainable business growth and prosperity in the region.